Gold and Silver Bounce Higher as Euro Breaks $1.24

Wall St. Cheat Sheet

On Wednesday, gold (NYSEARCA:GLD) futures for June delivery popped $14.70 to settle at $1,563.40 per ounce, while silver (NYSEARCA:SLV) futures gained 19 cents to close at $27.98.

Despite trading lower earlier in the day, both precious metals managed to climb higher in the face of a stronger greenback. The U.S. dollar index climbed to as high as 83.02 as the euro sank below $1.24, representing its lowest level since mid-2010. U.S. Treasury yields also dropped to their lowest level on record. The yield on the 10-year Treasury note declined to 1.63 percent, compared to 1.73 percent the prior day.

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European concerns continue to weigh on the markets, as the countries that use the euro may set up a union to share the costs of bank failures in the region. The WSJ reports, “The European Commission called on the euro zone to allow its new rescue fund to directly prop up vulnerable banks—rather than pushing their home countries into full-blown bailouts. It also raised the idea of a pan-European deposit insurance fund, which would further shield individual governments from the cost of expensive bank failures.”

In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) increased .72 percent, while the iShares Silver Trust (NYSEARCA:SLV) gained .44 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Barrick Gold (NYSE:ABX) both jumped more than 1 percent. Silver names such as Coeur d’Alene Mines (NYSE:CDE) and Silver Wheaton (NYSE:SLW) edged .57 percent and .27 percent higher, respectively.

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Disclosure: Long EXK, AG, HL, PHYS