Copper & Gold Jump on EU deal (GLD, GDX, SLV, IAU, ABX, AUQ, KGC, NG, PAAS, GPL, AXU, COPX, FCX, SCCO, TC)

Published on Friday, 09 December 2011 15:33 Written by Paul Oldrini

New York, December 9^th (TradersHuddle.com) - Copper jumped on Friday in volatile session after European leaders agreed to tighter euro zone budget rules at a summit in order to tackle the ongoing debt crisis that has raised fears about the demand prospectus.

Metals were under selling pressure in early session as the meeting of 27 European leaders failed to get unanimous support for a new agreement on stricter fiscal co-ordination. However, later on the group said it would follow an intergovernmental treaty with some members.

At the summit, European Council President Herman van Rompuy stated that members hadn’t reached an agreement on euro bonds but that euro-area member states would carry on to work on fiscal integration.

Also, Reuters reported that China's central bank would make a new investment vehicle worth $300 billion, part of which would be used in Europe. After the news, the euro rose against the dollar and equities rallied in Europe and U.S., which boosted the broader commodities as well.

Copper prices were trading higher by 1.83% to $356.40/lb. January platinum rose $21.90, or 1.47%, to $1,516.30 an ounce, while palladium for March delivery surged $11.35, or 1.69%, $686.65 an ounce.

Gold prices also pared all of its losses and ended higher by $2.90 or 0.2%, to $1,716.80 an ounce on the Comex division of the New York Mercantile Exchange, after hitting session low of $$1,704. Silver for March delivery added 68 cents, or 2.16%, to $32.2 an ounce.

SPDR Gold Trust (ETF)  (NYSE:GLD) rose 00.40% to $166.62.  Market Vectors Etf Trust  (NYSE:GDX) fell 0.79% to $57.66, iShares Silver Trust (ETF) (NYSE:SLV) gained 2.10% and iShares Gold Trust(ETF) (NYSE:IAU) added 0.36%.

Barrick Gold  (USA)  (NYSE:ABX) surged 0.14%, AuRico Gold (NYSE:AUQ) slumped 1.55% and Kinross Gold  (USA)(NYSE:KGC) gained 0.99%. NovaGold Resources  (USA)(AMEX:NG) also added 2.37%.

Pan American Silver  (NASDAQ:PAAS) added 1.23 %, Great Panther Silver (AMEX:GPL) gained 2.26% to $2.26. Alexco Resource (AMEX:AXU) soared 4.50%.

Global X Copper Miners ETF  (NYSE:COPX) is trading higher by 2.94%. Freeport-McMoRan Copper & Gold    (NYSE:FCX) is trading higher by 4.10% to $39.91, Thompson Creek Metals (NYSE:TC) is trading with a gain of 2.71%. Southern Copper  (USA)(NYSE:SCCO) is gaining over 3.28%.