Gold dropped in Thursday trading a day after Fed Chairwoman Janet Yellen signaled that interest rates could begin rising much sooner than Wall Street had expected.
On Wednesday, during a new conference after the conclusion of the Fed’s March meeting, Yellen told a reporter that the central bank would wait “around six months” after it ends its monthly bond-buying to hike interest rates. Analysts say that suggests an increase in interest rates as early as April or May of next year. Most economists had expected the Fed to wait at least until the end of 2015 to begin raising interest rates.
Gold futures for April delivery fell 0.8% to $1,330.50 per ounce on Thursday, according to CME Group. Gold traded as high as $1,335.30 and as low as $1,320.80. Bullion closed in London at $1,329, according to BullionVault.
Silver futures for May delivery sank 1.9% to $20.43 per ounce. Thursday’s high for silver was $20.73, while the low was $20.14.
Metal funds slipped on Thursday.
- The SPDR Gold Shares (GLD) faded 0.2%.
- The iShares Gold Trust (IAU) dipped 0.1%.
- The iShares Silver Trust (SLV) fell 1.4%.
Mining ETFs advanced during the day.
- The Market Vectors Gold Miners ETF (GDX) rose 0.2%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) climbed 1.1%.
- The Global X Silver Miners ETF (SIL) gained 1%.
Gold stocks mostly gained on Thursday.
- Agnico-Eagle Mines (AEM) rose 0.8%.
- Barrick Gold (ABX) inched up 0.2%.
- Eldorado Gold (EGO) was unchanged.
- Goldcorp (GG) was flat.
- Kinross Gold (KGC) added 0.1%.
- Newmont Mining (NEM) climbed 0.4%.
- NovaGold Resources (NG) increased 0.7%.
- Yamana Gold (AUY) sank 0.4%.
Silver mining shares mostly improved during the day.
- Coeur d’Alene Mines (CDE) added 1.3%.
- Hecla Mining (HL) rose 0.9%.
- Pan American Silver (PAAS) slipped 0.4%.
- Silver Wheaton (SLW) climbed 0.4%.
- Silver Standard Resources (SSRI) gained 0.3%.
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.
