Gold and silver shares rallied alongside precious metals on Friday, as the Philadelphia Gold & Silver Index (XAU) rose 1.0% to 220.15 in late morning trading.
With the move higher, the XAU extended its gain in July to 9.5%, putting it on pace for its best month since a 17.3% surge in November 2009.
Shares of precious metals companies climbed as the price of gold rebounded back above $1,600 per ounce and silver regained the $40 per ounce level. Gold bullion was higher this morning by $14.55 at $1,605.51, while silver rose $0.87 to $40.20 per ounce.
Among gold producers, Agnico-Eagle Mines (AEM) and Eldorado Gold (EGO) advanced 1.5% and 2.1%, respectively. Silver Standard Resources (SSRI) and Silver Wheaton (SLW), two of the world’s largest silver companies, added 2.4% and 1.9%, respectively.
Strength in the gold and silver sectors came despite a modest move higher in the U.S. dollar against a basket of foreign currencies. The euro fell 0.4% to 1.4363 against the dollar as optimism over yesterday’s European summit on Greece was tempered by losses in European markets on Friday.
Fortuna Silver’s Production Rises in Q2
- Fortuna Silver Mines reported that it is prioritizing its silver and gold production and is on track to deliver 2.4 million ounces of silver and 7,368 gold ounces, plus significant base metal production, in 2011.
- The third quarter of 2011 will be a milestone quarter for the Company with the planned start-up of commercial operations at its San Jose Silver and Gold mine in Mexico.
- Silver production at Caylloma for the first two quarters was 912,102 ounces with mill feed being sourced from the Animas, Bateas and Soledad veins. Last month, the Company received the approval of the environmental impact study for the construction of a new tailings dam.
