Gold and silver shares fell alongside precious metals on Friday, as the Philadelphia Gold and Silver Index (XAU) slid 3.14 points to 197.99 in mid-day trading.
The XAU’s 1.6% drop was fueled by losses of 1.0% and 2.1% for gold and silver bullion, respectively. The yellow metal retreated $15.27 to $1,484.83 per ounce, while silver sunk $0.73 to $33.99 per ounce.
Among gold miner, Kinross Gold (KGC) and Newmont Mining (NEM) declined 1.2% and 1.5%, respectively. Hecla Mining (HL) and Silver Wheaton (SLW), two of the largest silver companies in the sector, dropped 0.7% and 2.9%, respectively.
Investors and traders sold precious metals shares and moved into more cyclically-sensitive equities following better than expected economic data in the U.S. The S&P 500 Index climbed 0.9% to 1,332.94 following release of the ISM Manufacturing Index, which surpassed economists’ estimates. In doing so, the broader U.S. equity markets are now on pace for their best week of gains in close to a year.
In currencies, the euro held near unchanged at 1.4470 against the U.S. dollar.
Fortuna Silver’s Cash Flows Rise 41%
Fortuna Silver (FVI.TSX) announced financial and operating results for the first quarter of 2011. Highlights of the Canadian-based silver miner’s results included $7.72 million in cash flow from operations, a 40.6% increase over the prior year period. Fortuna also reported that the San Jose Mine, currently under construction, will begin to contribute to silver and gold ounces in the third quarter of 2011. Full Fortuna Silver Press Release
FORTUNA SILVER VS. S&P 500, XAU
FORTUNA SILVER GROWTH
