Gold Prices, Silver Boost Precious Metals

Spot gold prices and silver led the precious metals complex Monday amid a spike in inflationary concerns, reaffirmation of U.S. economic problems and the flat-lining of stocks following Fed chairman Ben Bernanke's latest economic update.
By Andrea Tse ,


NEW YORK (TheStreet) -- Spot gold prices and silver led the precious metals complex Monday amid a spike in inflationary concerns, reaffirmation of U.S. economic problems and the flat-lining of stocks following Fed chairman Ben Bernanke's latest economic update.

Inconclusive discussions about Bush-era tax cuts also helped keep stocks in indecisive territory.

In an interview with CBS'

60 Minutes

over the weekend, Bernanke signaled that the central bank could expand its $600 billion bond purchase program to address the high unemployment rate. "We're not very far from the level where the economy is not self-sustaining," he told CBS.

The dual forces of economic uncertainty, including those caused by the euro-zone's deep debt problems and inflationary chatter stemming from Bernanke's talk of a third round of quantatative easing helped fuel the spike in spot gold prices and that of its less expensive cousin, silver. Silver soared to a 30-year high Monday.

>> Silver Prices Hit 30-Year High

Prices of auto catalyst components platinum and palladium fell with the economic news dampeners.

New York spot gold prices were tacking on $4.10, or 0.3%, to $1,418.60, according to Kitco's spot price index.

Spot silver prices

were heating up by 67 cents, or 2.3%, to $30.05.

Spot platinum prices were falling by $12, or 0.7%, to $1,713 an ounce as its sister metal dipped into negative territory.

New York spot palladium prices were down $12, or 1.6%, to $755 an ounce.

Precious metal mining stocks and exchange-traded funds -- which offer another form of exposure to the precious metals -- were trading in mixed territory towards Monday's closing bell.

Kinross Gold

(KGC) - Get Report

was higher by 2.4% to $19.19 while

Silver Wheaton

(SLW)

jumped by 3.9% to $40.85.

Silvercorp Metals

(SVM) - Get Report

was falling 3.2% to $13.15 as the company announced it has agreed to sell to a syndicate of underwriters, led by

CIBC

and

BMO Capital Markets

, 8 million common shares at $12.70 per share for aggregate gross proceeds of about $101.6 million.

ETFS Physical Platinum Shares

(PPLT) - Get Report

were giving up 0.3% to $171.40 as

ETFS Physical Palladium Shares

(PALL) - Get Report

lost 1.3% to $75.37.

-- Written by Andrea Tse in New York.

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