Gold Flat, Silver Weaker in Wake of Italian Bond Yield Spike

Gold hovered and silver was moving lower Wednesday morning as Italian bond yields spiked above the key 7% level, sending the U.S. dollar higher, stocks around the world lower and investors piling into the perceived safety of U.S. Treasuries.

Pan American Silver (NASDAQ:PAAS) shares were sharply lower, down more than 5%, despite reporting sharply higher revenue and profit for the third quarter. Management also reduced forecast silver and associated lead, zinc and copper production at its mines in Mexico and South America, and reported a foreign exchange loss.

Spot gold was about flat at 10:30 a.m., having hit a high of $1,800.80 per ounce and a low of $1,780. Spot gold was bid at $1,783.90 with an ask price of $1,784.90. The London afternoon reference price came in at $1,784 — $11 lower than Tuesday’s fix, according to Kitco market data.

Spot silver was down 1.4% and trading at $34.41 Bid, $34.51 Ask. The morning high as of time of writing was $35.05 per ounce, and the low was $34.18. Wednesday’s reference price was set at $34.58 in the London a.m., down six cents from Tuesday’s fix.

Gold trusts were slightly higher Wednesday, but the iShares Silver Trust (NYSE:SLV) was lower.

• The SPDR Gold Trust (NYSE:GLD) was around 0.25% higher.
• The iShares Gold Trust (NYSE:IAU) was about 0.15% higher.
• The iShares Silver Trust was down around 1.35%.

Gold and silver trusts were moving lower.

• The Market Vectors Gold Miners ETF (NYSE:GDX) was flat.
• The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) was around 1.7% lower.
• The Global X Silver Miners ETF (NYSE:SIL) was 2.2% lower.

Shares of gold miners were mixed to higher.

• Agnico-Eagle Mines (USA) (NYSE:AEM) was around 2.6% higher.
• Barrick Gold Corp. (NYSE:ABX) was more than 1.2% higher.
• Goldcorp (NYSE:GG) was up around 1%.
• Newmont Mining Corp. (NYSE:NEM) was trading flat.
• NovaGold Resources (USA) (AMEX:NG) was unchanged on the day.

Silver miners’ shares were mixed, with Pan American Silver showing sharp losses.

• Coeur d’Alene Mines Corp. (NYSE:CDE) was around 1% lower.
• Hecla Mining (NYSE:HL) was down around 2.2%.
• Pan American Silver was more than 5% lower.
• Silver Wheaton Corp. (USA) (NYSE:SLW) was around 1% higher.
• Silver Standard Resources Inc. (USA) (NASDAQ:SSRI) was between 0.7% and 1% lower.

As of this writing, Andrew Burger did not own a position in any of the aforementioned stocks.