Gold, Silver Shares Rally, Outperform Metals

Gold and silver shares posted strong gains Friday despite mixed action in precious metals.

The Philadelphia Gold & Silver Index (XAU) – a composite of the sector’s largest companies – rallied 2.5% to 189.10 in mid-day trading.  Among gold producers, two of the top performing names today were Randgold Resources (GOLD) and Yamana Gold (AUY) – which jumped 3.5% and 3.0%, respectively.  As for silver miners, Coeur d’Alene Mines (CDE) and Hecla Mining (HL) each rose 1.0%.

Gold futures moved higher as well, but by a substantially smaller margin.  COMEX gold for December delivery advanced 0.5% to $1,625.10 per ounce.  In contrast to the yellow metal, silver futures retreated 0.6% to $30.35 per ounce alongside cyclical commodities.

Gold and silver stocks also fared quite better than the broader U.S. equity markets, as the Dow Jones Industrial Average (DJIA) slid 48.06 points, or 0.4%, to 11,105.92 and the S&P 500 fell 9.70 points, or 0.8%, to 1,150.70.

In the currency markets, the euro dropped 1.0% to 1.3461 against the U.S. dollar.