US
UK
Spanish
Chinese
Japanese
Hong Kong
Canada
Australia
Korean
Deutsch
India
Sponsorship Link
On Tuesday, gold (NYSEARCA:GLD) futures for April delivery jumped $32.60 to settle at $1,758.50 per ounce, while silver (NYSEARCA:SLV) futures gained $1.21 to close at $34.43.
Must Read
Greece finally reached a deal with international lenders to secure another bailout early Tuesday. In exchange for 130 billion euros ($172 billion) to stave off default, Greece has accepted severe austerity measures and strict conditions, and came to an agreement with private investors in Greek debt to accept even steeper losses than expected.
Don’t Miss: Warren Buffett Trashes Gold, But What About Silver?
Though a deal had long been expected, the European Central Bank and the International Monetary Fund wrestled through the night over a discrepancy in the amount of Greece’s debt to be reduce, finally agreeing that Greece would reduce its debt to about 120.5 percent of gross domestic product by 2020, from about 160 percent now. Holders of Greek debt, who agreed in October to accept a 50 percent write-down on the face value of their bonds, ultimately agreed to take a 53.5 percent loss.
With more bailout funds comes higher precious metal prices. In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) gained 2 percent, while the iShares Silver Trust (NYSEARCA:SLV) jumped 3.3 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Goldcrop Inc. (NYSE:GG) both increased 2.8 percent, while shares of Yamana Gold (NYSE:AUY) surged more than 4 percent. Silver miners (NYSEARCA:SIL) Endeavour Silver (NYSE:EXK) and First Majestic (NYSE:AG) gained 3.7 percent and 1.9 percent, respectively.
Follow us
Shares of Hecla Mining (NYSE:HL) surged 12 percent after announcing fourth quarter results. The miner earned $18.6 million (7 cents per share), compared to a net loss of $9.7 million in the year-earlier quarter. “Hecla faced significant challenges in 2011; however, what is different today than at any other time in our history is that our financial position, asset base, and growth opportunities are the strongest they have ever been,” said Hecla’s President and Chief Executive Officer, Phillips S. Baker, Jr.
Investor Insight: Record High Gold Prices Fail to Curb Global Demand
If you would like to receive professional analysis on equity miners and other precious metal investments, we invite you to try our premium service free for 14 days.
To contact the reporter on this story: Eric McWhinnie at staff.writers@wallstcheatsheet.com
To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com
