Gold Surges to Nominal Record Levels as Investors Flock to Safe Haven

Gold surged to new nominal record highs near $1,828 per ounce in London and
early New York trading Thursday as safe-haven demand continued to feed on
investors concerns about weakening economic conditions in the United States and
the EUs ongoing sovereign budget and debt problems. U.S. weekly jobless claims
again rose above 400,000 for the week ended July 13, though the four-week moving
average fell to its lowest level since mid-April. Consumer price inflation as
measured by the CPI rose a greater than expected 0.5% in July, at its fastest
rise since March. Spot gold was trading at $1,822.80 Bid, $1,823.80 Ask early
Thursday, up $33.80, or 1.89% on the day. Spot silver was trading at $40.63 Bid,
$40.73 Ask, up $0.40, or nearly 1%. The London p.m. gold fix came in at $1,824
per ounce, nearly $30 above the a.m. fix, while silver was fixed at $40.32 in
the London a.m., according to Kitco market data . On the exchanges, gold trusts
were sharply higher. The SPDR Gold Trust (NYSE: GLD ) was up around 1.8%. The
iShares Gold Trust (NYSE: IAU ) was about 1.7% higher. The iShares Silver Trust
(NYSE: SLV ) was nearly 0.6% higher. The gold and silver miners ETFs were moving
lower early Thursday. The Market Vectors Gold Miners ETF (NYSE: GDX ) was down
more than 0.5%. The Market Vector Junior Gold Miners ETF (NYSE: GDXJ ) was 2.25%
lower. The Global X Silver Miners ETF (NYSE: SIL ) was nearly 3% lower. Shares
of gold miners were lower, with NovaGold Resources up sharply. Agnico Eagle
Mines (USA) (NYSE: AEM ) was down less than 0.1%. Barrick Gold Corp. (NYSE: ABX
) was more than 1.2% lower. Goldcorp (NYSE: GG ) was more than 1.1% lower.
Newmont Mining Corp. (NYSE: NEM ) was down around 0.1%. NovaGold Resources (USA)
(AMEX: NG ) was up around 2.5%. Silver mining shares were mostly down, with
Hecla Mining defying the group. Coeur DAlene Mines Corp. (NYSE: CDE ) was around
3.7% lower. Hecla Mining (NYSE: HL ) was more than 1.5% higher. Pan American
Silver Corp. (USA) (NASDAQ: PAAS ) was down 0.15%. Silver Wheaton Corp. (USA)
(NYSE: SLW ) was about 1.6% lower. Silver Standard Resources Inc. (USA) (NASDAQ:
SSRI ) was down around 1.7%. The author does not hold positions in any of the
above-mentioned investments.