Jefferies sees metals breakout on currency concerns

Gold prices fell 1% to $4,649.10/oz after a hotter-than-expected US inflation report, retreating from a three-month high. Spot gold is still up 14% in August. Silver also declined. The Fed's preferred inflation gauge, PCE, rose 3.7% YoY in July, above forecasts. Investors await Fed Chair Warsh's speech at Jackson Hole for further rate guidance. Gold's recent rally was driven by US Treasury bond market intervention and ETF inflows. Miners like Agnico Eagle and AngloGold have seen significant gain

Hecla Mining (HL) and Coeur Mining (CDE) rose 13% after the Treasury doubled long-dated debt buybacks, lowering yields and boosting precious metals. Both stocks are flat to negative for the year. First Majestic Silver (AG) is up 11% year-to-date, while Endeavour Silver (EXK) has gained 3%. The 30-year yield at 5.2% is a key variable to watch.

Gold prices rose 2.8% to $4,489.40 per ounce, the highest since May 29, after the U.S. Treasury announced increased buybacks of longer-dated debt, lowering Treasury yields and weakening the dollar. Silver also gained 2.8% to $65.734. The 30-year Treasury yield fell 9 basis points to 5.19%, its biggest one-day decline since October. Gold miners like Hycroft Mining and Hecla Mining saw significant gains. TD Securities noted that Treasury liquidity support and stagflation concerns could boost gold

Hecla Mining (HL) and Coeur Mining (CDE) shares rose 13% as Treasury buyback plans boosted precious metals. First Majestic Silver (AG) and Endeavour Silver (EXK) also gained, though their year-to-date performance lags. The Amplify Junior Silver Miners ETF (SILJ) increased 9%. The rally is tied to lower long-end yields and safe-haven demand, not broad commodity moves.

Hecla Mining’s Q2 2026 earnings call said revenue from continuing operations fell to $334 million from $411 million in Q1, mainly due to lower metal prices and delayed silver concentrate sales from Greens Creek. Adjusted EBITDA was $199 million, operating cash flow $175 million, and free cash flow $136 million. The company reported $483 million cash, no long-term debt beyond capital leases, and advancing Greens Creek pyrite and tailings reprocessing projects.

Simply Wall St says Hecla Mining (NYSE:HL) rose 21.6% after Q2 2026 results. The company reported sales of $333.85 million and net income of $117.88 million, updated production guidance, and kept dividends on common and preferred stock. It also released drilling results extending high-grade silver at Keno Hill and finding new high-grade veins at Midas.