Although both precious metals posted small gains on the day, they were standouts in a sea of red. All three major equity indices fell on more downbeat economic news, with the Dow Jones Industrial Average leading the way with a 100-plus point decline. The International Monetary Fund said financial institutions in Europe may need to sell as much as $4.5 trillion in assets through 2013 if the region fails to stabilize its financial crisis.
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The development comes shortly after the organization cut its outlook on the global economy. The IMF expects the world economy to grow by 3.3 percent in 2012, down from its forecast of 3.5 percent in July.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) traded flat, while the iShares Silver Trust (NYSEARCA:SLV) edged 0.40 percent higher. Miner (NYSEARCA:GDX) Barrick Gold (NYSE:ABX) declined 0.70 percent, but Yamana Gold (NYSE:AUY) gained 1.55 percent. Silver names such as Silver Wheaton (NYSE:SLW) and Endeavour Silver (NYSE:) jumped 1.05 percent and 2.70 percent, respectively.
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Disclosure: Long EXK, AG, HL, PHYS