Gold stocks have shown a notable upward move over the course of the trading session on Wednesday, contributing to the considerable strength in the broader markets. The gold sector is benefiting from a significant increase by the price of the precious metal.
After closing lower in the three previous session, the NYSE Arca Gold Bugs Index is currently up 4.7 percent, although it remains well off the ten-month closing high it set in early June.
The gains by gold stocks come as the price of the precious metal has moved notably higher after showing a steep decline on Tuesday. After ending the previous session down $13.30 at $927.40 an ounce, gold for August delivery is currently up $14 at $941.40 an ounce.
Gold is benefiting from some weakness in the value of the U.S. dollar, which has fallen to a three-week low against the euro. The dollar is moving lower against most of the other major currencies, although it is moving modestly higher versus the Japanese yen.
The weakness in the value of the dollar comes on the heels of the release of a slew of economic data, including a report showing a bigger than expected drop in private sector employment.
Within the gold sector, Kinross Gold (KGC) and Yamana Gold (AUY) are turning in two of the best performances, advancing 6.1 percent and 5.7 percent, respectively.
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