Both precious metals climbed higher, despite the U.S. dollar index trading in the green. Gold recently hit fresh six-week lows, but demand is still being seen in several areas of the world. Brazil increased its gold reserves for the first time since December 2008.
Bloomberg reports, “Brazil’s holdings expanded 1.7 tons last month to 35.3 tons, data on the International Monetary Fund’s website showed. Turkey’s holdings increased 6.8 tons and Ukraine added 0.3 ton. Brazil’s central bank doesn’t comment on the policy of its reserve composition, it said in an e-mail.”
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) increased 0.60 percent, while the iShares Silver Trust (NYSEARCA:SLV) jumped 1.2 percent. Gold miners (NYSEARCA:GDX) such as Newmont Mining (NYSE:NEM) and Yamana Gold (NYSE:AUY) both gained about 2 percent. Silver names such as Hecla Mining (NYSE:HL) and First Majestic Silver (NYSE:AG) both increased more than 3 percent.
Investor Insight: Will Central Banks Hit an American Express Gold Limit?
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Disclosure: Long EXK, AG, HL, PHYS