(AXcess News) New York - Precious metal prices rebound Tuesday with gold rising 1.31% to $1141.80 and silver climbing over 3.6% to cross the $17 per ounce mark, a level not seen in weeks. This morning, gold and silver continued moving into positive territory.
A slight give in the price of the dollar against the euro Tuesday helped slightly after hopes re-emerged for Greece. Yet this morning the euro continued to show some strength.
Standard Bank precious metals analyst, Walter de Wet, looks for a potential rally in gold if the price breaks above $1,148. This morning, gold was trading up over the "it might go" level of $1140 at $1,142.10. Silver gained 16 cents, or 0.95%, to trade at $17.30.
De Wet explained the Bank's outlook towards gold saying, "Gold has been assisted by some dollar depreciation, but this cannot be explained only by currency movements. The fact that gold is pushing higher in most currencies is a clear indication of good physical buying interest. However, speculative interest is also rising. We continue to see a steady flow of physical buying interest, which is indicative of good underlying support."
The Gold Composite rose 1.4% this morning to 992.9 indicating investor appetite for gold stocks is on the move once again.
Shares of Gold Fields Ltd. (NYSE: GFI) where up 1.4% this morning at $12.14 after the company said there would be no strike in South Africa.
Seabridge Gold, Inc. (TSX: SEA; AMEX: SA) said it completed the sale of $65.8 million in common stock this morning. Seabridge shares fell 12 cents at $23.33, which is a strong showing considering the Offering took place at $22.90.
Amongst the micro cap gold stocks, Polar Star Mining (TSX.V: PSR) gave up 4.76% this morning to trade at $1.20 after showing strength on Tuesday following news of a planned $10 private placement. The Company was featured in a Micro Cap News story written by Source Press in advance of the News Site's launch. The Company's Vice President said in an interview that funds from the financing where earmarked for Polar Star's Montezuma Property in Chile.
