Both precious metals climbed higher as fears in Spain and Italy continue to weigh on markets. Spanish bond yields hit a new high near 6.8 percent on the 10-year. Meanwhile, the yields on Italian government bonds climbed further above 6 percent to hit almost 6.3 percent, their highest level of the year.
Continue Reading Below
“It is quite likely that Spain needs a full bailout in the near future although policy makers will try all possible options to avoid this outcome, including a revival of bond purchases by the ECB as well as another three-year liquidity operation,” said Pavan Wadhwa, global head of interest rate strategy at J.P. Morgan Chase, according to WSJ.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) gained .59 percent, while the iShares Silver Trust (NYSEARCA:SLV) jumped 1.04 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Goldcorp Inc. (NYSE:GG) increased 2.49 percent and 1.72 percent, respectively. Silver names such as Silver Wheaton (NYSE:SLW) and First Majestic (NYSE:AG) surged 3.57 percent and 4.79 percent, respectively.
Investor Insight: The Fed Reserve Whispers Sweet Nothings to Gold and Silver
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