Gold and silver mining stocks jumped Monday as the price of the metals surged and the broader equity markets turned sharply higher on a pledge by leaders of Europe's richest countries to save the continent's banks.
Those banks hold the bonds of such weak European nations as Greece, Spain and Italy, and the market has been knocking their value down to the point that it threatens the solvency of the banks. Franco-Belgian bank Dexia had to be partly nationalized over its exposure to Greek government bonds.
On Sunday, however, German Chancellor Angela Merkel and French President Nicolas Sarkozy emerged from a meeting to say they would present a unified plan by early November on how to save vulnerable banks.
That buoyed European and U.S. stock exchanges as investors took heart from prospects of Europe avoiding a financial crisis and a recession.
It also lifted the price of gold 2.14 percent and silver 3.2 percent, but it did far more for the shares of companies that mine those metals.
In late afternoon trading, Eldorado Gold Corp. jumped 5.68 percent and Harmony Gold Mining Co. soared 7.23 percent.
Coeur d'Alene Mines Corp. shot up 6.73 percent and Great Panther Silver Ltd. added 5.31 percent.
Exchanged-traded funds also did well: Markets Vectors Junior Gold Miners climbed 6.37 percent; and Global X Silver Miners was up 4.23 percent.