Gold and Silver Climb Higher as Equities Sink Again
By Eric McWhinnie | November 9, 2012 8:31 AM EST
Both precious metals logged gains, despite central banks in Europe and England keeping main interest rates unchanged. The European Central Bank decided to keep its rate at 0.75 percent, while the Bank of England is holding steady at 0.5 percent. The BOE also said it will not be adding to its 375 billion pound quantitative easing program.
Don’t Miss: Is Barrick Gold a Buy After Earnings?
While the ECB did not lower its interest rate, the central bank’s president Mario Draghi continued to jawbone markets about bond buying. “We are ready to undertake” Outright Monetary Transactions, “which will help to avoid extreme scenarios,” he said at a press conference in Frankfurt, according to Bloomberg. “The risks surrounding the economic outlook remain on the downside” and underlying inflation pressures “should remain moderate.”
By the end of the day, the Dow Jones Industrial Average closed 121 points in the red, while the S&P 500 and Nasdaq dropped more than 1.0 percent. However, the SPDR Gold Trust (NYSEARCA:GLD) gained nearly 1.0 percent, while the iShares Silver Trust (NYSEARCA:SLV) increased 1.8 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Agnico Eagle Mines (NYSE:AEM) both closed more than 1 percent higher. Meanwhile, First Majestic Silver (NYSE:AG) and Hecla Mining (NYSE:HL) jumped 3.4 percent and 2.5 percent, respectively.
Investor Insight: Is Gold Set to Benefit from Obama’s Re-Election?
If you would like to receive professional analysis on miners and other precious metal investments, we invite you to try our premium service free for 14 days.
Disclosure: Long EXK, AG, HL, PHYS
Most Popular Slideshows
- Prince Harry & Camilla Thurlow Getting Serious, St. Tropez Holiday Before The Prince’s 30th Birthday [PHOTOS]
- Angelina Jolie & Brad Pitt Heads to Malta For New Movie After A Whirlwind French Wedding [PHOTOS]
- Prince William & Kate Middleton Caught Flirting In A Countryside Dinner Date [PHOTOS]
- Chris Martin Getting Serious With Jennifer Lawrence, Actress Joining Coldplay Tour [PHOTOS]
Join the Conversation
- Apple iPhone 6 Actual Release Date after September 9 Confirmed 128GB Variant with New Resolution
- Pricey iPhone 6 on Release Date Likely but with 3X Retina Resolution & Mobile Payment Service – Reports
- Moto G2 Release Roundup: Specs, Pricing, and Release Date Details
- PlayStation 4 Killing Xbox One Costing Microsoft Millions But It's Fine
- Google Chrome 64-bit for Windows 8 and Window 7 with Mac Beta Available
- Apple iOS 8 vs Android 5.0 L: OS Wars Puts Android to Lower while Apple to Higher
- Nexus 6 on Release Date Confirmed with Phablet-Size Display as FCC Filing Hints of 5.9-Inch Screen