Two positive economic reports bolstered the U.S. dollar against other currencies and sent gold down sharply in Thursday trading.

The Chicago Purchasing Managers’ Index surged to a reading of 65.9 this month, up from 55.7 in September. That surprised analysts, who had expected a modest decline for October. In another report, the Department of Labor announced that 340,000 people filed for first-time unemployment benefits last week, in line with economists’ forecasts.

Investors viewed the good news as evidence that the Federal Reserve might initiate tapering of its monthly bond-buying sooner than previously anticipated.

Gold futures for December delivery dropped 1.9% to $1,323.70 per ounce on Thursday, according to CME Group. Gold traded as high as $1,343 and as low as $1,318.70. Bullion closed in London at $1,325, according to BullionVault.

Silver futures for December plunged 4.9% to $21.87 per ounce. Thursday’s high for silver was $22.69, while the low was $21.73.

Metal funds fell in Thursday trading.

• The SPDR Gold Shares (GLD) slid 1.4%.
• The iShares Gold Trust (IAU) sank 1.5%.
• The iShares Silver Trust (SLV) dropped 3.5%.

Mining ETFs declined during the day.

• The Market Vectors Gold Miners ETF (GDX) moved down 4.2%.
• The Market Vectors Junior Gold Miners ETF (GDXJ) tumbled 5.3%.
• The Global X Silver Miners ETF (SIL) fell 3.9%.

Gold stocks retreated on Thursday.

• Agnico-Eagle Mines (AEM) waned 2.3%.
• Barrick Gold (ABX) sank 5.4%.
• Eldorado Gold (EGO) dropped 4.8%.
• Goldcorp (GG) slid 3.5%.
• Kinross Gold (KGC) tumbled 4.7%.
• Newmont Mining (NEM) fell 2.8%.
• NovaGold Resources (NG) declined 4%.
• Yamana Gold (AUY) moved down 2.7%.

Silver mining shares pulled back hard during the day.

• Coeur d’Alene Mines (CDE) slid 3.6%.
• Hecla Mining (HL) tumbled 6%.
• Pan American Silver (PAAS) fell 2.5%.
• Silver Wheaton (SLW) plunged 7.1%.
• Silver Standard Resources (SSRI) dropped 5.6%.

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.