Precious Metals Extend Gains, Gold, Silver Shares Lag

Precious metals extended their gains Tuesday morning, with gold and silver futures rising to fresh intra-day highs.

COMEX gold futures – per the December contract – surged $28.30, or 1.6%, to $1,786.30 per ounce, while silver futures for September delivery rallied $0.66, or 1.7%, to $39.965 per ounce as of 11:04am ET.

Strength in gold and silver came despite relatively tepid movements in the currency markets. In morning trading, the euro/U.S. dollar currency cross dipped 0.3% to 1.4401.

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Steve Cohen Joins Growing List of GLD Investors

Steve Cohen, one of the world’s largest hedge fund managers, was the latest prominent investor to accumulate a position in the SPDR Gold Trust (GLD).

The June 30th 13-F filing of SAC Capital Advisors – the $14 billion firm run by Cohen – disclosed a position of 4.3 million call options on the GLD valued at $628 million.  SAC’s March 31st 13-F did not disclose any position in the GLD, indicating that Cohen’s entire position was purchased in the second quarter of 2011.

With his purchase, Cohen joins a growing list of hedge fund magnates with significant positions in the world’s largest gold ETF.  This list includes John Paulson, George Soros, and Eric Mindich, among others.

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Gold Price Climbs on Dismal GDP Data from Europe

Gold Price Climbs on Dismal GDP Data from Europe

GOLD PRICE NEWS – The gold price advanced $12.50 to $1,779 per ounce Tuesday, spiking higher on the news that gross domestic product in the 17-nation Euro zone rose a mere 0.2%.  The price of gold, which sank as lows as $1,728 per ounce early yesterday, climbed following the weak economic data out of Europe.  Additional bond purchases from the European Central Bank are highly likely following Europe’s weakest GDP figure since the global economy was mired in a recession in 2009.  The euro fell to 1.438 against the U.S. dollar on speculation that the ECB will cut interest rates at its next policy meeting.

On Monday, the gold price began the week with a positive reversal amid weakness in the U.S. dollar and dovish commentary from a Federal Reserve President.  The price of gold initially rebounded over $30 from its morning lows alongside a potent advance in the broader commodities complex.  Silver prices fell $0.27 to $39.59 per ounce, moving lower after yesterday’s 1.6% advance.  Oil prices fell 1.77% to $86.35 per barrel Tuesday morning, posting the largest loss in the 19-member Reuters/Jefferies CRB index.

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