Comments made by Federal Reserve Chairman Ben Bernanke late Wednesday sent gold up sharply in Thursday trading. Bernanke indicated that the Fed would continue monetary policies that promoted economic growth. He also said that the nation’s central bank would not increase interest rates “for some time.”
While Bernanke’s remarks lifted precious metals, the U.S. dollar sank against other currencies.
Gold futures for August delivery surged 2.6% to $1,279.90 per ounce Thursday, according to CME Group. Gold traded as high as $1,297.20 and as low as $1,262.10. Gold bullion closed in London at $1,287, according to BullionVault.
Silver futures for August delivery also soared 4.1% to $19.95 per ounce. Thursday’s high for silver was $20.16, while the low was $19.50.
Gold and silver funds climbed in Thursday trading.
- The SPDR Gold Trust (GLD) gained 2.7%.
- The iShares Gold Trust (IAU) also rose 2.7%.
- The iShares Silver Trust (SLV) surged 5.5%.
Gold and silver mining ETFs moved sharply higher during the day.
- The Market Vectors Gold Miners ETF (GDX) jumped 7.7%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) surged 8%.
- The Global X Silver Miners ETF (SIL) increased 7.2%.
Gold mining shares advanced strongly on Thursday.
- Agnico-Eagle Mines (AEM) climbed 7.6%.
- Barrick Gold (ABX) surged 8.7%.
- Eldorado Gold (EGO) soared 10.8%.
- Goldcorp (GG) rose 8.6%.
- Kinross Gold (KGC) added 6.9%.
- Newmont Mining (NEM) increased 5.7%.
- NovaGold Resources (NG) moved up 5.3%.
- Yamana Gold (AUY) jumped 7.9%.
Silver mining shares improved during the day.
- Coeur d’Alene Mines (CDE) gained 5.9%.
- Hecla Mining (HL) climbed 6.5%.
- Pan American Silver (PAAS) added 5.8%.
- Silver Wheaton (SLW) increased 7.7%.
- Silver Standard Resources (SSRI) surged 8.5%.
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.