Gold and silver shares turned higher alongside precious metals Monday morning, as optimism over the U.S. debt ceiling deal faded and the disappointing ISM data helped send the broader markets sharply lower.
The Philadelphia Gold & Silver Index (XAU) opened fractionally higher, but climbed 1.71 points, or 0.8%, to 207.52 in late morning trading. Strength in gold and silver equities follows last week’s 6.2% slide in the XAU, which snapped a five-week win streak for the composite of precious metals shares. In July, however, the XAU still posted a monthly gain of 2.3%.
Among gold miners, Agnico-Eagle Mines (AEM) and Yamana Gold (AUY) rallied 2.0% and 1.0%, respectively. Pan American Silver (PAAS) and Silver Standard Resources (SSRI), two of the world’s largest silver companies, advanced 1.7% and 3.3%, respectively.
The move higher in precious metals equities came as gold and silver futures rebounded from earlier losses. COMEX gold for December delivery bounced back from an intra-day low of $1,612 to as high as $1,633.40 per ounce as of 11:15am ET. September silver on the COMEX jumped from as low as $39.04 to $39.89 per ounce.
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.
