Gold and Silver Hold Steady: Randgold CEO Says Supply is Tight
The U.S. dollar (NYSE:UUP) climbed higher today as a Greek austerity deal has not been reached. International creditors are demanding more austerity measures from Greece, but failed to reach an agreement over the weekend. The austerity measures are a precondition to Greece receiving another bailout. On March 20, Greece has a 14.5 billion euro bond payment to make, and currently does not have the funds to do so.
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In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) declined .25 percent, while the iShares Silver Trust (NYSEARCA:SLV) gained .21 percent. Gold miners (NYSEARCA:GDX) such as AngloGold (NYSE:AU) and Yamana Gold (NYSE:AUY) fell 2.15 percent and 1.10 percent, respectively. Meanwhile, First Majestic Silver (NYSE:AG) and Edeavour Silver (NYSE:EXK) both declined more than 1 percent.
Shares of Randgold Resources Limited (NASDAQ:GOLD) jumped 1.8 percent as the miner’s CEO said demand is still strong for gold. Mark Bristow said, “The supply side of the supply-demand equation is very tight. There is a growing demand side from the increase in jewelry off-take in central Asia, but also the central banks starting to buy gold. These are the emerging markets central banks, not the G20 central banks.”
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