Sector Snap: Gold, silver stocks climp

In afternoon trading, Oil prices shot up more than $10 to a new record above $138 a barrel after a Morgan Stanley analyst predicted prices could hit $150 by July 4.

Additionally, the dollar declined against other major currencies--a move that makes each barrel of oil more expensive. The Dow Jones industrial average dropped more than 350 points.

The dollar and the price of gold usually move inversely, as each is considered a hedge against the other. In addition, the precious metal is usually seen as a hedge against problems in the economy.

Mining company Goldcorp Inc. posted some of the day's largest gains, rising $2.24, or 5.7 percent, to $41.73 in light afternoon trading.

Kinross Gold Corp. rose 74 cents, or 3.8 percent, to $20.24, Barrick Gold Corp. rose $1.88, or 4.7 percent, to $42.31 and IAMgold Corp. rose 28 cents, or 4.6 percent, to $6.40.

Elsewhere in the sector, Hecla Mining Co. rose 28 cents, or 3.2 percent, to $9.12 and Yamana Gold Inc. rose 47 cents, or 3.2 percent, to $15.40.