Both precious metals performed well as the U.S. dollar index declined against the euro. Reports indicate that Greece will receive a total of 44 billion euros to prevent it from defaulting for the time being.
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Christopher Vecchio, currency analyst at DailyFX, explains, “With Greek issues (aside from social collapse and political upheaval, of course) off the table for the near-term, the two main issues at hand are: when will Spain ask for a bailout, triggering the implementation of the European Central Bank’s OMTs and thus the opening of the ECB’s balance sheet; and how will the US resolve the fiscal slope.” Of course, Congress is on vacation this week, leaving little chance of any new developments over the fiscal cliff.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) increased 1.30 percent, while the iShares Silver Trust (NYSEARCA:SLV) jumped 3.02 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Barrick Gold (NYSE:ABX) both gained more than 1.50 percent. Meanwhile, First Majestic Silver (NYSE:AG) and Hecla Mining (NYSE:HL) both surged more than 5.0 percent.
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Disclosure: Long EXK, AG, HL, PHYS