Gold, Silver Shares Hold Gains Despite Market Sell-Off

Shares of most precious metals companies remained firmly in positive territory this afternoon despite a negative reversal in the broader equity markets.
The Philadelphia Gold & Silver Index (XAU) – which rose this morning to 167.22, its best level since June 20th – traded up by 2.2% at 164.56 this afternoon.
In contrast, the S&P 500 Index climbed to a four-year high of 1,426.68 this morning but later traded down by 0.3% at 1,413.74.  The sell-off did not coincide with a rebound in the U.S. dollar however, but rather a decline in shares of Apple (APPL) – which yesterday became the largest ever company in the world by market capitalization and now represents over 3.5% of the benchmark U.S. equity index.
As for the gold and silver sectors, notable XAU components in the black on Tuesday included Yamana Gold (AUY), Goldcorp (GG), and Silver Standard Resources (SSRI).  AUY rose by 3.1% to $15.95, GG by 2.5% to $39.37, and SSRI by 4.1% to $13.84 per share.
Commenting on the divergence between the gold sector and the broader markets, Jeffrey Sica – chief investment officer at SICA Wealth Management – sated that “There is still an overriding fear that the equities markets have appreciated beyond the point of sustainability so there is a level of fear and desire for diversification into gold.”
“The economic numbers around the world have not proven to justify a recovery without the anticipated liquidity created by central banks,” Sica added.