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Gold is poured at Agnico-Eagle's Meadowbank Mine.
Gold is poured at Agnico-Eagle's Meadowbank Mine.
(CHRIS WATTIE/REUTERS)

Interest rates drive gold mining stocks higher

Precious metals stocks had such a miserable 2013 that many investors are unaware of the sector’s strong start to 2014. The reason, as usual, is U.S. interest rates.

Year to date, the gold price has climbed 22.5 per cent and an even stronger 26.6 per cent in Canadian dollar terms. Six of the top ten positive contributors to S&P/TSX Composite performance are precious metals stocks; Goldcorp Inc., Barrick Gold Corp., Silver Wheaton Corp., Franco-Nevada Corp., Yamana Gold Inc. and Agnico Eagle Mines Ltd.