Better-than-forecast economic data from China combined with a weaker U.S. dollar to send gold sharply higher in Thursday trading. The metal closed near session highs.

The Chinese government reported that exports rose 5.1% in July, compared to the prior year, reversing a 3.1% decline in June. Imports to China also rose 11% in July, signaling a stronger Chinese economy. China is a major buyer of gold on world markets and improving economic conditions there could signal  greater demand for the metal. Meanwhile, the dollar extended its losses against other currencies.

Silver futures for December delivery surged 3.5% $20.24 per ounce. Thursday’s high for silver was $20.34, while the low was $19.55.

Gold and silver funds advanced strongly in Thursday trading.

• The SPDR Gold Trust (GLD) climbed 2.2%.
• The iShares Gold Trust (IAU) rose 2.3%.
• The iShares Silver Trust (SLV) surged 4.1%.

Gold and silver mining ETFs vaulted higher during the day.

• The Market Vectors Gold Miners ETF (GDX) jumped 8.6%.
• The Market Vectors Junior Gold Miners ETF (GDXJ) gained 9.1%.
• The Global X Silver Miners ETF (SIL) advanced 7.8%.

Gold mining shares rocketed higher on Thursday.

• Agnico-Eagle Mines (AEM) grew 7.1%.
• Barrick Gold (ABX) jumped 10%.
• Eldorado Gold (EGO) soared 10.9%.
• Goldcorp (GG) added 7.6%.
• Kinross Gold (KGC) rose 6.1%.
• Newmont Mining (NEM) advanced 8.7%.
• NovaGold Resources (NG) surged 11.3%.
• Yamana Gold (AUY) climbed 9.1%.

Silver mining shares shot up during the day.

• Coeur d’Alene Mines (CDE) rose 8.3%.
• Hecla Mining (HL) jumped 10.5%.
• Pan American Silver (PAAS) increased 7.3%.
• Silver Wheaton (SLW) gained 8.3%.
• Silver Standard Resources (SSRI) added 14.6%.

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.