Gold shares rebounded Monday afternoon amid a broad-based rally in U.S. equity markets.
The AMEX Gold Bugs Index (HUI), a basket of the world’s largest gold companies, climbed 2.0% to 547.30 after being down as much as 2.1% at 525.03 this morning. Notable advancers in the sector included Gold Fields (GFI), Newmont Mining (NEM), and Yamana Gold (AUY) – which jumped 2.1%, 2.4%, and 3.2%, respectively.
The Dow Jones Industrial Average (DJIA) – which last week tumbled to a new 52-week low of 10,572.20 – charged higher on Monday after euro zone officials pledged to implement additional measures to combat the sovereign debt crisis. The Dow finished the day higher by 272.38 points, or 2.5%, at 11,043.86.
Although details of the euro zone plans remain up in the air, speculation has risen that the European Financial Stability Fund (EFSF) may be leveraged and/or expanded. Such a measure could increase the amount of money available for future bailouts and/or to help recapitalize European banks.
Gold futures pared their losses as the broader commodities complex moved higher on the news, with the yellow metal climbing toward $1,630 per ounce in electronic trading this afternoon.
Klondex Mines Delivers Updated Resource for Fire Creek
* The cut-off grade also resulted in an inferred resource estimate of 458,084 ounces of gold.
* During 2009 and 2010, 14 holes were drilled to in-fill known mineralization, eight holes were drilled to extend the known zones along strike and 13 holes were drilled to test new geophysical targets.
