Gold and Silver Rise as Investors Seek Safe-Havens

On Tuesday, gold (NYSEARCA:GLD) futures for June delivery increased $16.80 to settle at $1,660.70 per ounce, while silver (NYSEARCA:SLV) futures gained 15.5 cents to close at $31.68.

Both precious metals increased along with the U.S. dollar (NYSE:UUP) as safe-haven plays were popular among traders today. Spain’s cost of borrowing is becoming more of a concern as interest rates neared 6 percent on Tuesday. It was the highest level for Spain’s 10-year note since last December.

Don’t Miss: Investors Brace for Alcoa’s Earnings Release

U.S. Treasury 10-year notes fell below 2 percent for the first time in over a month. It was the fifth consecutive session of rising bond prices. Today’s three-year note auction also attracted the highest amount of indirect buying since August. The WSJ reports, “So-called indirect bidders, often a reflection of overseas interest, scooped up 40% of the $32 billion offering. That compares to the 35% average over the last four auctions of this maturity.”

In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) increased 1.15 percent, while the iShares Silver Trust (NYSEARCA:SLV) gained .70 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Newmont Mining (NYSE:NEM) both jumped more than 2 percent. Silver miners (NYSEARCA:SIL) such as Silvercorp Metals Inc. (NYSE:SVM) and Endeavour Silver (NYSE:EXK) increased 3.3 percent and 1.5 percent, respectively.

Investor Insight: The Federal Reserve Did It Again to Gold Prices

If you would like to receive professional analysis on equity miners and other precious metal investments, we invite you to try our premium service free for 14 days.

Disclosure: Long EXK, AG, HL, PHYS