UPDATE 1-Gold, silver mining stocks up as metal prices soar

Thomson Reuters






* Gold price rises over 1.3 pct to near $1,000/oz

* Silver price climbs 4.3 pct

* Precious metals mining company stocks rise

(Adds silver stocks, updates prices, stock levels)

NEW YORK, Sept 3 (Reuters) - Shares of gold and silver
mining companies rose on Thursday as the price of the precious
metals rallied, with gold hovering close to the psychological
barrier of $1,000 per ounce.

Analysts said that flight-to-quality buying has supported
gold this week, as the metal is used as a safe haven in times
of economic and geopolitical uncertainties.

"The equities markets look a little shaky to start this
week. There is an element of nervousness, which was enough to
spur gold buying," said Bill O'Neill, managing partner of New
Jersey-based LOGIC Advisors.

In afternoon trading on the New York Stock Exchange, shares
in Canada's Barrick Gold , the world's largest
gold producer, were 4.9 percent higher at $39.75. Denver-based
Newmont Mining's stock was up 4.5 percent at $45.80.

The gold bugs index was up 6.2 percent and in
Canada, the S&P/TSX global gold index , which tracks
major gold stocks traded on several exchanges, rose 4.9
percent.

Silver miner Coeur d'Alene saw its stock soar 10.9
percent to $17.18.

The markets reacted as December gold rose to $13.10,
or 1.3 percent, at $991.60 an ounce on the COMEX division of
the New York Mercantile Exchange.

U.S. silver futures rallied to a three-month high above $16
an ounce, fueled by gold's sharp gains and increased investment
buying, traders said.

U.S. silver for December delivery was up 69.5 cents,
or 4.5 percent, at $16.060 an ounce on the COMEX. The session
high was $16.105 an ounce, which marked the highest price since
June 3.

(Reporting by Steve James and Frank Tang in New York and
Doris Frankel in Chicago; Editing by Lisa Von Ahn, Leslie
Gevirtz)