Gold and silver shares turned lower alongside the broader markets in mid-day trading on Friday, as the Philadelphia Gold & Silver Index (XAU) fell 1.8% to 193.63.
The XAU opened modestly higher in concert with precious metals and the S&P 500 following the better than expected jobs report, but relinquished its gains as trading progressed.
Notable decliners in the sector included AngloGold Ashanti (AU), Freeport-McMoRan Copper & Gold (FCX), and Silver Standard Resources (SSRI) – with losses of 1.3%, 3.3%, and 3.1%, respectively.
After advancing for five consecutive weeks, the XAU dropped last week and is now lower by 5.9% this week. Year-to-date, the XAU is now down by 14.5% as the equities continue to underperform precious metals.
Gold shares have suffered from widespread liquidation in financial markets, despite gains in the yellow metal itself.
Gold futures reached several new all-time record highs this week, culminating with Thursday’s $1,684.90 print prior to turning lower yesterday. On Friday, the yellow metal rebounded, rising $9.10 to $1,656.75 per ounce while silver inched lower by $0.16 to $38.73 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.
