Shares of miners surge as gold price hits new high

Shares of miners surge as gold price hits new high

Stock Market Predictions

TORONTO (Global Markets) - Shares of North American gold miners were among the biggest gainers on Friday morning, as the price of gold rose to a record of $1,877 an ounce on growing concerns over slowing economic growth and sovereign debt.

The ARCA Gold Bugs Index .HUI, whose components include some of the world's largest producers, rose more than 3 percent on Friday, lifted by gains in the shares of majors like Barrick (ABX.TO), Newmont Mining (NEM.N) and Goldcorp (G.TO).

The price of gold, often viewed by investors as a safe haven during turbulent times, has risen more than 30 percent this year, as investors worry about a double-dip recession and U.S. and European sovereign debt levels.

A surge in the number of gold and silver ETFs -exchange-traded funds that invest in the precious metals - has also helped drive bullion prices higher.

Shares of Barrick were up C$1.09, or 2.2 percent at C$50.39 on the Toronto Stock Exchange, while Newmont and Goldcorp were up 2.8 percent and 2.5 percent, respectively.

Shares of smaller rival Agnico-Eagle (AEM.TO) were among the biggest net gainers on the TSX on Friday morning, up 3.1 percent at C$64.97.

The price of spot silver also rose more than 3 percent to $41.65 an ounce on Friday, sending shares of top silver producers higher.

Pan American Silver (PAA.TO) rose 3.97 percent to C$30.13, while Silver Wheaton (SLW.TO) was up 4 percent at C$38.00 on the Toronto Stock Exchange. Coeur d'Alene (CDE.N) climbed 7 percent to $26.54 on the New York Stock Exchange.

(Reporting by Euan Rocha and Julie Gordon)