Gold posted its best one-day gain of 2013, which comes after the precious metal logged its best two-week rally in over a year. In fact, the price of gold closed above its 50-day moving average for the first time since November.
After a brutal first six months, the sentiment in gold may finally be improving. Bloomberg reports that speculators raised their net-long position by 56 percent to 55,535 futures and options by July 16, the highest level in over a month, according to data from the U.S. Commodity Futures Trading Commission.
The U.S. dollar index, which compares the greenback in a basket against six other flat currencies, also declined more than 0.50 percent to hit as low as 82.05.
In afternoon trading, shares of the SPDR Gold Trust (NYSEARCA:GLD) jumped 3 percent, while the iShares Silver Trust (NYSEARCA:SLV) surged 4.7 percent. Gold miners (NYSEARCA:GDX), such as Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY), gained 6.6 percent and 7.1 percent, respectively. Newmont Mining (NYSE:NEM) was the best performer in the S&P 500, with a 5.7 percent move higher.
Silver miners (NYSEARCA:SIL) Endeavour Silver (NYSE:EXK) and First Majestic Silver (NYSE:AG) jumped 4.1 percent and 5.6 percent, respectively. Meanwhile, shares of Silver Wheaton (NYSE:SLW) surged almost 7 percent.
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Disclosure: Long EXK, AG, HL, PHYS