Both precious metals outperformed today as European leaders at a summit in Brussels agreed on plans to create a single supervisor to oversee the financial industry. They also decided on a deal to stabilize the region’s debt markets by recapitalizing its banks.
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“Definitely some good news for risk markets here, though it is not the ‘big bazooka’,” said Sean Callow, senior currency strategist at Westpac in Sydney, referring to a lack of a reference to the issuance of common euro bonds, according to Reuters. The euro jumped to as high as $1.2692, while the U.S. dollar index fell to 81.60.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) gained 2.78 percent, while the iShares Silver Trust (NYSEARCA:SLV) popped more than 4 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) increased 3.64 percent and 2.67 percent, respectively. Silver names such as Silver Wheaton (NYSE:SLW) and Endeavour Silver (NYSE:EXK) jumped 4.9 percent and 3.97 percent, respectively.
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Disclosure: Long EXK, AG, HL, PHYS