Gold and Silver Edge Lower: GLD, SLV
Leaders of the euro zone’s two largest economies have hammered together a joint proposal for a more economically unified Europe days ahead of a crucial summit.
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The European Union’s 27 heads of state will meet on December 9 to piece together a new multilateral plan to combat the region’s debt crisis after a comprehensive plan produced at a six-day summit marathon in October proved fruitless. At the meeting, leaders will present a plan likely to contain various moving parts together meant to protect Italy and Spain, revise the economic governance of the euro zone, and to prevent further debt crises.
“Things cannot continue as they have done up until today,” Nicolas Sarkozy cautioned. “Our preference is for a treaty among the 27 [EU nations], so that nobody feels excluded, but we are open to a treaty among the 17 [euro members], open to any state that wants to join us.”
In afternoon trading, the SPDR Gold Shares Trust (NYSEARCA:GLD) declined 1.4%, while the iShares Silver Trust (NYSEARCA:SLV) fell by 1.2%. Gold miners such as AngloGold Ashanti (NYSE:AU) and Barrick Gold (NYSE:ABX) also declined by more than 1%. Meanwhile, Endeavour Silver (NYSE:EXK) edged .18% higher, as First Majestic Silver (NYSE:AG) slipped .30%.
Goldcorp Inc. (NYSE:GG) fell .40% and announced a dividend increase of 32%. The company also said it was on track with its mine plan for the Cerro Negro gold project in southern Argentina. The annual dividend is now 54 cents per share, and has been increased three times in the past 13 months. “We will continue to review dividend levels at regular intervals in the future,” CEO Chuck Jeannes explained.
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