Gold and Silver Climb Higher as Greece Makes Minimal Progress
Greece reached an agreement with international lenders on a package of austerity measures, clearing the way for a swap to cut the nation’s debt and win its second bailout in two years.
European Central Bank President Mario Draghi confirmed rumors on Thursday that a deal had been reached after he received word from Greek Prime Minister Lucas Papademos himself. Draghi appeared at the bank’s monthly press conference on monetary policy in Frankfurt, where he said, “An agreement has been endorsed by the major parties.” However, Germany claims the deal on spending cuts appear to not yet fulfill bailout conditions.
The U.S. dollar (NYSE:UUP) declined as the euro rose above $1.33 for the first time since December. Despite the stronger euro, some precious metal investments such as the SPDR Gold Trust (NYSEARCA:GLD) declined .25 percent, while the iShares Silver Trust (NYSEARCA:SLV) fell .40 percent. Gold miners (NYSEARCA:GDX) such as Newmont Mining (NYSE:NEM) and Barrick Gold (NYSE:ABX) edged slightly higher, while AngloGold (NYSE:AU) climbed 1.5 percent. Silver miners (NYSEARCA:SIL) such as First Majestic (NYSE:AG) and Silvercorp (NYSE:SVM) declined .70 percent and 3.6 percent, respectively.
Investor Insight: Should Investors Reconsider Cash and Gold as Safe-Havens?
Silvercorp reported a 31 percent drop in its third quarter earnings. The company earned $20 million (12 cents per share), compared to $29.1 million (17 cents per share) a year earlier. However, the company does expect to see a 20 percent increase in its silver production for fiscal year ending March 31, 2013. The company also expects to see a 90 percent surge in gold production.
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