Gold futures advanced Thursday amid a broad-based rally on Wall Street after euro zone officials agreed to a more robust financial rescue package to combat the European sovereign debt crisis.
COMEX gold futures for December 2011 delivery settled higher by $24.20, or 1.4%, at $1,747.70 per ounce. The yellow metal recovered from a modest dip in overnight trading to finish at a fresh five-week high. Moreover, it extended its daily winning streak to five and its weekly gain to 6.8%.
Silver futures posted even larger gains, as the COMEX December 2011 contract – also the most actively traded – surged $1.80, or 5.4%, to $35.11 per ounce.
Gold and silver equities finished the day with strong gains, as the Philadelphia Gold & Silver Index (XAU) jumped 2.9% to 203.36.
Precious metals were fueled in part by substantial weakness in the U.S. Dollar Index (DXY), which tumbled 1.7% to 74.958 – its lowest level since September 6. The euro currency’s rally accounted for a considerable part of the DXY’s weakness, as it climbed 2.0% to 1.4189 against the greenback.
The dollar’s decline helped lift the broader equity markets sharply higher as well, with the Dow Jones Industrial Average ending up 339.51 points, or 2.9%, at 12,208.55. In doing so, the Dow is now higher by 1,295.17 points, or 11.9%, in October – putting the Index on pace for its best month since a 13.8% climb in January 1987.
Aurizon Discovers Two New High Grade Gold Zones at Marban
- The best results from the new High Grade Western Zone include 906.2 grams per tonne (g/t) of gold over 2.9 meters (m) at hole MB-11-198 at a vertical depth of 175m and 5.9 g/t of gold over 15.7m at hole MB-11-195 at a vertical depth of 125m.
- The Eastern Down Dip Zone is located approximately 400m east of the former Marban mine shaft and includes 6.1 g/t of gold over 12.6m at hole MB-11-242 at a vertical depth of 350m.
- A resource estimate will be completed by the end of the year on the Marban property and will be based on new results obtained.
