Gold dropped again on Thursday, settling under $1,300 an ounce for the first time in six weeks. The metal retreated under pressure from stronger U.S. economic data, which boosted the U.S. dollar.
The Commerce Department revised fourth-quarter U.S. GDP growth upward from a prior estimate of 2.4%, to 2.6%, though the gain was almost entirely attributable to higher health care spending during the quarter. In a separate report, the Labor Department said that first-time unemployment benefit claims declined to a seasonally adjusted 311,000 last week. That was less than the 325,000 new claims economists had forecast.
Gold futures for April delivery fell 0.7% to $1,294.70 per ounce on Thursday, according to CME Group. Gold traded as high as $1,307.60 and as low as $1,291.20 Bullion closed in London at $1,294, according to BullionVault.
Silver futures for May delivery slipped 0.4% to settle at $19.71 per ounce. Thursday’s high for silver was $19.87, while the low was $19.58.
Metal funds faded on Thursday.
- The SPDR Gold Shares (GLD) sank 0.7%.
- The iShares Gold Trust (IAU) declined 0.6%.
- The iShares Silver Trust (SLV) dipped 0.2%.
Mining ETFs improved during the day.
- The Market Vectors Gold Miners ETF (GDX) rose 1.4%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) gained 3.6%.
- The Global X Silver Miners ETF (SIL) added 1%.
Gold stocks mostly advanced on Thursday.
- Agnico-Eagle Mines (AEM) rose 1.9%.
- Barrick Gold (ABX) moved up 1.2%.
- Eldorado Gold (EGO) slipped 0.4%.
- Goldcorp (GG) gained 1.3%.
- Kinross Gold (KGC) dropped 4.5%.
- Newmont Mining (NEM) slid 0.6%.
- NovaGold Resources (NG) climbed 2.3%.
- Yamana Gold (AUY) increased 0.8%.
Silver mining shares gained during the day.
- Coeur d’Alene Mines (CDE) inched up 0.2%.
- Hecla Mining (HL) climbed 2.6%.
- Pan American Silver (PAAS) added 1.8%.
- Silver Wheaton (SLW) rose 1.6%.
- Silver Standard Resources (SSRI) increased 1.9%.
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.