Gold and Silver DODGE Market Sell-Off

On Friday, gold (NYSEARCA:GLD) futures for August delivery increased $2.40 to settle at $1,582.80 per ounce, while silver (NYSEARCA:SLV) futures edged 9 cents higher to close at $27.30.

Both precious metals held firm today as equities experienced a broad pullback on renewed eurozone fears. Spain’s eastern region of Valencia announced today that it would ask for financial help, due to staggering debt loads. Reuters reports, “Valencia, Spain’s most indebted region alongside its northern neighbour Catalonia, sought help under a 18-billion-euro (14.1 billion pounds) programme passed on Thursday and aimed at helping regional finances.”

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Further adding to the market negativity, Spain’s government said its economy will remain in recession well into next year. Budget Minister Cristobal Montoro said the nation’s gross domestic product is now likely to contract by 0.5 percent in 2013, compared to the previous forecast of 0.2 percent growth. “The situation we face is tough, difficult,” Montoro said. The Spanish 10-year bond yield rose to 7.28 percent, while the euro fell to $1.2144, representing a fresh two-year low against the U.S. dollar.

By the end of the trading day, the S&P 500 (NYSEARCA:SPY) fell 1 percent, but the SPDR Gold Trust (NYSEARCA:GLD) and iShares Silver Trust (NYSEARCA:SLV) edged slightly higher. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Goldcorp (NYSE:GG) both gained more than 1 percent. Meanwhile, Silver Wheaton (NYSE:SLW) and Coeur d’Alene Mines (NYSE:CDE) closed 0.59 percent and 2.17 percent higher.

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Disclosure: Long EXK, AG, HL, PHYS