Gold prices posted strong gains on Thursday as investors digested the minutes of the Federal Reserve’s March meeting. Fed concerns about low inflation signaled that the central bank will continue to keep interest rates low. Also, gold rose in the face of a report showing lower-than-expected first-time jobless claims last month.
On the flip side, Canadian gold miner Goldcorp (GG) ended down more than 4% after the company upped its hostile bid for Osisko Mining to C$3.6 billion. GG had offered C$2.6 billion when it first bid to acquire the rival miner in January.
Gold futures for June delivery surged 1.1% to $1,320.50 per ounce on Thursday, according to CME Group. Gold prices were as high as $1,324.90 and as low as $1,311. Bullion closed in London at $1,321, according to BullionVault.
Silver futures for May delivery jumped 1.6% to settle at $20.09 per ounce. Thursday’s high for silver was $20.40, while the low was $19.86.
Metal funds advanced on Thursday.
- The SPDR Gold Shares (GLD) rose 0.6%.
- The iShares Gold Trust (IAU) increased 0.5%.
- The iShares Silver Trust (SLV) gained 0.9%.
Mining ETFs sank during the day.
- The Market Vectors Gold Miners ETF (GDX) fell 2%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) dropped 2.2%.
- The Global X Silver Miners ETF (SIL) slid 1.5%.
Other gold stocks joined Goldcorp, retreating on Thursday.
- Agnico-Eagle Mines (AEM) dipped 0.2%.
- Barrick Gold (ABX) fell 0.7%.
- Eldorado Gold (EGO) slid 2.3%.
- GG shares tumbled 4.1%.
- Kinross Gold (KGC) sank 1.9%.
- Newmont Mining (NEM) declined 0.8%.
- NovaGold Resources (NG) slipped 0.4%.
- Yamana Gold (AUY) decreased 1.8%.
Silver mining shares mostly pulled back during the day.
- Coeur d’Alene Mines (CDE) dropped 3.5%.
- Hecla Mining (HL) was flat.
- Pan American Silver (PAAS) slid 1.6%.
- Silver Wheaton (SLW) fell 2%.
- Silver Standard Resources (SSRI) sank 3.7%.
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.