A series of lackluster reports on the U.S. economy increased investor confidence that the Federal Reserve would continue stimulus efforts for the remainder of the year, boosting gold in Thursday trading. The precious metal closed above $1,400 an ounce for the first time in two weeks.
The Commerce Department said that the U.S. economy expanded at 2.4% during the first quarter, slightly less than earlier estimates, and first time claims unemployment benefits climbed by 10,000 last week.
Gold futures for July delivery gained 1.5% to $1,411.80 per ounce on Thursday, according to CME Group. Gold traded as high as $1,417.60 and as low as $1,388.40. Gold bullion closed in London at $1,416, according to BullionVault.
Silver futures for July delivery climbed 1.1% to $22.69 per ounce. Thursday’s high for silver was $23.06 while the low was $22.31.
Gold and silver funds rose in Thursday trading.
- The SPDR Gold Trust (GLD) climbed 1.4%.
- The iShares Gold Trust (IAU) also gained 1.4%.
- The iShares Silver Trust (SLV) added 1.2%.
Gold and silver mining ETFs surged during the day.
- The Market Vectors Gold Miners ETF (GDX) increased 5.4%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) soared 6.5%.
- The Global X Silver Miners ETF (SIL) advanced 5.6%.
Gold mining shares advanced on Thursday.
- Agnico-Eagle Mines (AEM) rose 3.3%.
- Barrick Gold (ABX) soared 7.4%.
- Eldorado Gold (EGO) added 6.8%.
- Goldcorp (GG) climbed 5.6%.
- Kinross Gold (KGC) jumped 8.7%.
- Newmont Mining (NEM) gained 3.8%.
- NovaGold Resources (NG) improved 6.1%.
- Yamana Gold (AUY) moved up 4.3%.
Silver mining shares also moved sharply higher during the day.
- Coeur d’Alene Mines (CDE) climbed 5.8%.
- Hecla Mining (HL) increased 5.7%.
- Pan American Silver (PAAS) gained 4.8%.
- Silver Wheaton (SLW) added 4.2%.
- Silver Standard Resources (SSRI) surged 7%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.