Gold extended its gains Tuesday morning, as the COMEX December 2011 futures contract surged $30.80, or 1.7%, to $1,809.70 per ounce.
Silver turned higher alongside the yellow metal, by $0.50, or 1.3%, to $40.15 per ounce.
The rebound in precious metals follows the sector’s large declines from yesterday. Monday’s weakness was fueled by considerable strength in the U.S. dollar, particularly against the euro currency. On Tuesday, however, gold and silver bounced back alongside the general commodities complex despite stabilization in the euro/dollar currency cross near 1.3670.
The broader markets moved higher as well this morning, with the Dow Jones Industrial Average (DJIA) rising 55.59 points, or 0.5%, to 11,456.60. Risk aversion subsided modestly, as the CBOE volatility Index (VIX) sliding 0.8% to 32.46.
Colossus Strikes High Grade Gold at Serra Pelada
- Hole SPD-113 intersected several ultra high-grade subzones within a continuously mineralized intercept of 74.4m at 31.17 grams per tonne (g/t) gold, 3.02 g/t platinum and 6.78 g/t palladium in the Central Mineralized Zone (CMZ).
- These results confirm the continuity of and extend the high-grade CMZ in the first area to be underground bulk sampled in 2012.
- Hole SPD-115 intersected 11.65m at 57.28 g/t gold, 6.58 g/t platinum and 7.66 g/t palladium.
- A detailed geochemical program is nearing completion on the entire concession package and new targets have been generated.
