Precious metals maintained the large majority of their gains Monday afternoon amid a broad-based rally on Wall Street. Commodities and stocks surged higher amid reports that Congress and the Obama administration were nearing the completion of a deal to resolve the looming fiscal cliff.
The proposed budget deal, according to Senate Minority leader Mitch McConnell, would include tax increases for individuals with incomes above $400,000 and families making more than $450,000. President Obama stated this afternoon that an agreement is “within sight,” and would prevent a tax hike for the large majority of Americans, extend unemployment benefits for up to two million people, and extend the child tax and tuition credits for families.
As for the markets, COMEX gold futures closed higher by $19.90, or 1.2%, at $1,675.80 per ounce while COMEX silver futures advanced by 0.8% at $30.23 per ounce. In doing so, the most actively-traded futures contracts for gold and silver posted gains in 2012 of 7.0% and 8.3%, respectively.
Gold and silver stocks rose sharply, with the Philadelphia Gold & Silver Index (XAU) up by 3.2% at 165.74 in afternoon trading. Nevertheless, the XAU remained on track to post a year-to-date decline of 8.2%.
Precious metals were undeterred by firmness in the U.S. dollar, which clung to a small gain against a composite of foreign currencies in today’s trading session.
(Price targets, rankings, upgrades and downgrades on every XAU component at GoldAlert Pro – http://pro.goldalert.com)
Notable gold and silver stocks in the black on Monday included Barrick Gold (ABX), Kinross Gold (KGC), and Silver Wheaton (SLW). Shares of ABX jumped by 3.2% to $35.11, KGC by 3.5% to $9.74, and SLW by 4.3% to $36.14.
The broader equity markets fared quite well this afternoon, but still lagged most precious metals shares in today’s session. The S&P 500 Index rose by 1.3% to 1,420.54, putting it on pace for a 13.0% annual advance.
This article is contributed by Gold Alert and does not represent the views or opinions of International Business Times.