Gold Continues to Test Its Vertical Limits

Gold traded at new nominal highs above $1,890 per ounce in overnight electronic
and Asia-Pacific trading before turning around and heading lower, holding just
above $1,860 at the New York open. Gold changed course shortly thereafter and
was heading higher early Monday as market participants await this weeks economic
data, news from European Union leaders regarding a potential debt crisis and
word from Fed chairman Bernanke and other central bankers as they meet for an
annual symposium in Jackson Hole, Wyo. New York spot gold was trading at $1,876
Bid, $1,877 Ask, up 1.24% at last read early Monday, having hit a high of
$1,880.90 and a low of $1,857.10, according to Kitco market data . Spot silver
was trading at $43.41 Bid, $43.51 Ask, up 1.19%, hitting an intraday low of
$42.40 and a high of $43.70. Gold and silver trusts were making strong moves
higher early Monday. The SPDR Gold Trust (NYSE: GLD ) was up nearly 1.5%. The
iShares Gold Trust (NYSE: IAU ) was up 1.44%. The iShares Silver Trust (NYSE:
SLV ) was almost 1.7% higher. Gold and silver miner ETFs were moving up sharply.
The Market Vectors Gold Miners ETF (NYSE: GDX ) was almost 3% higher. The Market
Vector Junior Gold Miners ETF (NYSE: GDXJ ) was about 3.7% higher. The Global X
Silver Miners ETF (NYSE: SIL ) was up nearly 4%. Shares of gold miners were
making large gains, with most gold miners up more than 3%. Agnico Eagle Mines
(USA) (NYSE: AEM ) was more than 3.3% higher. Barrick Gold Corp. (NYSE: ABX )
was more than 2.4% higher. Goldcorp (NYSE: GG ) was up 3.25%. Newmont Mining
Corp. (NYSE: NEM ) was up 3.75%. NovaGold Resources (USA) (AMEX: NG ) was more
than 3.5% higher. Silver mining shares were sharply higher as well, with Coeur
DAlene Mines and Pan American Silver shooting up over 5% early Monday. Coeur
DAlene Mines Corp. (NYSE: CDE ) was surging around 5.4% higher. Hecla Mining
(NYSE: HL ) was more than 4.6% higher. Pan American Silver Corp. (USA) (NASDAQ:
PAAS ) was up more than 5.8%. Silver Wheaton Corp. (USA) (NYSE: SLW ) was up
nearly 4%. Silver Standard Resources Inc. (USA) (NASDAQ: SSRI ) was up almost
2.6%. The author does not hold positions in any of the above-mentioned
investments.