Shares of Precious Metals Producers Rise With Gold Prices As Street Faces Tough Economic Data

NEW YORK (AP) -- Shares of most precious metals producers are up at midday Tuesday as consumer worries about tightening credit markets and rising oil prices helped boost gold prices. On the New York Mercantile Exchange, gold for April delivery has risen $9.70 to $928.40. The move comes as pricing for the yellow metal begins a slow rise after dropping sharply last week.

Oil prices continue to hover around $100 per barrel, and Tuesday the Conference Board said its Consumer Confidence index dropped to a five-year low. The news also comes after a report showing home prices posted their biggest loss in over 20 years in January.

Taken together, the litany of economic data does little to reassure already-skittish investors, especially after a months-long period filled with negative economic news. Gold is generally seen as a safe investment in tough economic times, and it usually moves inversely to the U.S. dollar, which was mixed Tuesday against other major currencies. A jump in gold prices is good news for miners.

On Wall Street Tuesday, shares of Goldcorp Inc. rose $2.30, or 6.2 percent, to $39.61; shares of Pan American Silver Corp. added $2.02, or 5.5 percent, to $38.63; shares of Hecla Mining Co. rose 42 cents, or 3.9 percent, to $11.08; shares of NovaGold Resources Inc. increased 29 cents, or 3.8 percent, to $7.88; and shares of IAMGOLD Corp. rose 35 cents, or 4.8 percent, to $7.58. Shares of Yamana Gold Inc. added 66 cents, or 4.2 percent, to $16.36; shares of Kinross Gold Corp. rose $1.33, or 6.3 percent, to $22.50; and shares of Rio Tinto PLC increased $1.35 to $396.85. Bucking the trend, shares of Gold Fields Ltd. lost 5 cents to $14.24.