Gold, silver mining stocks up as metal prices soar
NEW YORK (Reuters) - Shares of gold and silver mining companies rose on Thursday as the price of the precious metals rallied, with gold hovering close to the psychological barrier of $1,000 per ounce.
Analysts said that flight-to-quality buying has supported gold this week, as the metal is used as a safe haven in times of economic and geopolitical uncertainties.
"The equities markets look a little shaky to start this week. There is an element of nervousness, which was enough to spur gold buying," said Bill O'Neill, managing partner of New Jersey-based LOGIC Advisors.
In afternoon trading on the New York Stock Exchange, shares in Canada's Barrick Gold (ABX.TO) (ABX.N), the world's largest gold producer, were 4.9 percent higher at $39.75. Denver-based Newmont Mining's (NEM.N) stock was up 4.5 percent at $45.80.
The gold bugs index .HUI was up 6.2 percent and in Canada, the S&P/TSX global gold index .SPTTGD, which tracks major gold stocks traded on several exchanges, rose 4.9 percent.
Silver miner Coeur d'Alene (CDE.N) saw its stock soar 10.9 percent to $17.18.
The markets reacted as December gold rose to $13.10, or 1.3 percent, at $991.60 an ounce on the COMEX division of the New York Mercantile Exchange.
U.S. silver futures rallied to a three-month high above $16 an ounce, fueled by gold's sharp gains and increased investment buying, traders said.
U.S. silver for December delivery was up 69.5 cents, or 4.5 percent, at $16.060 an ounce on the COMEX. The session high was $16.105 an ounce, which marked the highest price since June 3.
(Reporting by Steve James and Frank Tang in New York and Doris Frankel in Chicago; Editing by Lisa Von Ahn, Leslie Gevirtz)
