Here's Why Gold and Silver Stocks Jumped Today
Another day, another wild ride for investors. As of 3:06 p.m. EDT, the S&P 500 was sitting at a loss of about 2.5%. That's relatively tame compared to daily movements of the last several weeks, but it's still a sizable drop. And that means gold and silver prices are rising higher.
While precious metals are generally perceived as safe-haven investments when markets are volatile, the relationship hasn't quite held up in recent weeks thanks to the surging strength of the U.S. dollar. That could change as the U.S. Federal Reserve opens the fiscal taps to feed growing international demand for America's currency.
Investors are preparing for a recovery in gold and (especially) silver prices in the coming weeks. Shares of Yamana Gold (NYSE: AUY) rose as much as 16.7% today, while shares of Royal Gold (NASDAQ: RGLD) jumped nearly 14% and shares of Hecla Mining (NYSE: HL) gained almost 11%. Can these gold and silver stocks hold on to their gains?
Source Fool.com
