Precious metals prices and shares of companies that mine precious metals jumped Wednesday after the world's top central banks announced a coordinated rescue of the Eurozone's rapidly deteriorating finances.
The U.S. Federal Reserve, the European Central bank, and the central banks of Canada, England, Japan and Switzerland said they would work together to ensure that skyrocketing interest rates on Italian bonds don't collapse Eurozone banks or force the continent's third largest economy to default, an outcome that could lead to a freeze in global money flows.
News of the coordinated central bank intervention followed by hours a statement by the European Union's Economic and Monetary Affairs Commissioner that the Eurozone is now entering the critical period of 10 days to complete and conclude the crisis response of the European Union.
Moments after the central banks' announcement European stocks shot up, with Germany's DAX stock index up more than four percent. U.S. stocks opened more than two percent higher.
On the Comex, gold rose $33 to $1,751.90, a 1.9 percent gain, silver climbed 52 cents to $32.47, a 1.6 percent rise, platinum gained $11.70, a 0.8 percent improvement, and palladium added $27.70, a 4.7 percent jump.
Shares of precious metals miners surged, led by Harmony Gold Mining Co., up 7.5 percent, Gold Fields Ltd., up 6.4 percent and First Majestic Silver Corp., up 7.7 percent.
Exchange-traded funds also shot higher. Market Vectors Junior Gold Miners ETF added 6.3 percent.