Higher silver, gold prices drive up mining stocks

NEW YORK (Reuters) - Shares of U.S. gold and silver mining companies surged on Tuesday as the price of the precious metals rose.

Spot Gold was selling in London at $1,016 an ounce against $1,002 on Monday as the dollar dropped broadly. Traders said they saw the metal beating its record high of $1,030.80 in the next few days if dollar weakness continues.

Spot silver was trading at $17.22 an ounce in London, up from $16.80 in New York on Monday.

Silver company shares were up more than the gold companies. Hecla Mining Co (HL.N) stock was 6.7 percent higher at $4.61 in morning trading on the New York Stock Exchange. while Coeur d'Alene Mines (CDE.N) saw its stock rise 5 percent to $20.87.

Gold producer Newmont Mining Corp (NEM.N) rose 3.27 percent to $45.86 and Freeport McMoRan Copper & Gold (FCX.N) was up 3.74 percent at $72.70.

(Reporting by Steve James, editing by Dave Zimmerman)