Working together with other central banks, the Federal Reserve gave a big boost
to financial and precious markets Wednesday. The Fed and other central banks are
cutting the cost for foreign countries to borrow dollars from their own central
banks in half, according to news reports. The cheap loans will be available all
the way out to February 2013. Word of increased liquidity as a result of the
lower costs to borrow dollars reassured market participants, who sent stocks and
precious metals surging higher. Spot gold was up more than 1.75% Wednesday with
a bid price of $1,745.40 per ounce and an ask price of $1,746.40 at 10:20 a.m.,
having traded as high as $1,751.50 and as low as $1,729.60. The London afternoon
reference price fixing came in at $1,746, according to Kitco market data . Spot
silver was up nearly 1.7%, bid at $32.46 with an ask price of $32.56. The
morning high as of time of writing was $32.70 and the low was $31.85. Mondays
reference price was set at $31.35 in the London a.m. Gold and silver trusts were
showing strong morning gains. The SPDR Gold Trust (NYSE: GLD ) was showing gains
of around 1.8%. The iShares Gold Trust (NYSE: IAU ) also was up nearly 1.8%. The
iShares Silver Trust (NYSE: SLV ) was moving higher, showing gains of around 2%.
In an abrupt turnaround from recent steep losses, gold and silver mining ETFs
were surging higher. The Market Vectors Gold Miners ETF (NYSE: GDX ) was up some
4.75%. The Market Vectors Junior Gold Miners ETF (NYSE: GDXJ ) was moving
higher, up nearly 6.4%. The Global X Silver Miners ETF (NYSE: SIL ) was more
than 4.6% higher. Gold mining shares were climbing steeply, with todays
coordinated central bank action adding more fuel to NovaGold Resources (AMEX:
NG ) recent surge upwards. Agnico-Eagle Mines (NYSE: AEM ) was showing gains of
nearly 4.8%. Barrick Gold Corp. (NYSE: ABX ) was around 4.3% higher. Goldcorp
(NYSE: GG ) was showing gains of 6.6% and more. Newmont Mining Corp. (NYSE: NEM
) was about 3.25% higher. NovaGold Resources continued racing higher and was up
around 8.3%. Silver mining shares also were moving higher Wednesday. Coeur
dAlene Mines Corp. (NYSE: CDE ) was nearly 6% higher. Hecla Mining (NYSE: HL )
was up nearly 5.4%. Pan American Silver Corp. (NASDAQ: PAAS ) was around 4.7%
higher. Silver Wheaton Corp. (NYSE: SLW ) was approaching gains of 5%. Silver
Standard Resources Inc. (NASDAQ: SSRI ) was up more than 2.9%. As of this
writing, Andrew Burger did not hold a position in any of the aforementioned
stocks.
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