Gold and Silver Rebound While Equities Sink
Both precious metals climbed higher as the eurozone slipped deeper into uncertainty. Greece’s new Prime Minister Vassilis Rapanos resigned on Monday, just days after being named to the position. He sent a letter of resignation to Prime Minister Antonis Samaras, who accepted it. Rapanos was rushed to the hospital before on Friday due to abdominal pain, nausea and dizziness.
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“The state of my health isn’t at the state that would allow me to fully and adequately exercise my duties,” Rapanos said in the letter, according to Bloomberg. “I regret that I will not be able to accept in the end your honorable proposal.” The Dow Jones Industrial Average and the S&P 500 both declined more than 1 percent, while investors sought out safety in the U.S. dollar and precious metals.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) increased .80 percent, while the iShares Silver Trust (NYSEARCA:SLV) popped 2.22 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) both gained more than 1 percent. Silver names such as Silver Wheaton Corp. (NYSE:SLW) edged .15 percent higher, while First Majestic (NYSE:AG) fell .95 percent.
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Disclosure: Long EXK, AG, HL, PHYS