Gold and Silver Hold Steady Amid Currency War Chatter

By Roger Baettig | February 12 2013 4:24 PM

REUTERS

An employee picks up a gold bar at the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna August 26, 2011. Oegussa processes some 100 tons of various precious metals and generates a turnover of 300 million euros a year.

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On Tuesday, gold (NYSEARCA:GLD) futures for April delivery, the most active contract, edged 50 cents higher to settle at $1,649.60 per ounce, while silver (NYSEARCA:SLV) futures for March increased 11 cents to close at $31.02.

Both precious metals held relatively steady as currency wars continues to gain attention. The G7, a group of seven nations, warned that fiscal and monetary policies should not be directed at devaluing currencies, although actions suggest otherwise.

Many thought the G7 was initially approving the recent decline in the Japanese yen, but a report from Reuters, citing an unnamed official, says the nations are concerned about the recent extreme moves in the yen.

“The G7 statement signaled concern about excess moves in the yen,” the official said. “The G7 is concerned about unilateral guidance on the yen. Japan will be in the spotlight at the G20 in Moscow this weekend.”

In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) edged slightly higher, while the iShares Silver Trust (NYSEARCA:SLV) increased 0.20 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Newmont Mining (NYSE:NEM) both jumped more than 1 percent. Silver Wheaton (NYSE:SLW) increased 1.5 percent, while Hecla Mining (NYSE:HL) dipped 0.40 percent.