Gold and Silver Report: Gold Prices Drop, ABX Sinks on Lower Earnings

Silver slumped and miners mostly declined

By Christopher Freeburn, InvestorPlace Writer

Gold fell back sharply in Thursday trading. The metal was pressured by reports showing strong U.S. consumer spending in March and rising factory activity last month. Investors continued to weigh yesterday’s decision by the Federal Reserve to taper its monthly stimulus by another $10 billion, a sign of confidence in the outlook for the U.S. economy.

gold-and-silver-ABXShares of Barrick Gold (ABX) sank after the miner reported first-quarter net earnings of $88 million — a 90% drop from $847 million year-over-year. Adjusted EPS came in at 20 cents, which narrowly topped the 19 cents Wall Street was expecting. ABX stock closed down 2% in Thursday trading.

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Gold futures for June delivery fell 1% to $1,283.40 per ounce on Thursday, according to CME Group. Gold prices were as high as $1,293 and as low as $1,277.30. Bullion closed in London at $1,287, according to BullionVault.

Silver futures for July delivery slid 0.7% to $19.04 per ounce. Thursday’s high for silver was $19.25, while the low was $18.69.

Here’s how metal-based funds and mining stocks fared on Thursday:

Gold and Silver Funds

  • The SPDR Gold Shares (GLD) slipped 0.4%.
  • The iShares Gold Trust (IAU) sank 0.4%.
  • The iShares Silver Trust (SLV) declined 0.7%.

Gold and Silver Mining ETFs

  • The Market Vectors Gold Miners ETF (GDX) fell 1.2%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) dropped 2.3%.
  • The Global X Silver Miners ETF (SIL) slid 2.6%.

Gold Miners

  • Agnico Eagle Mines (AEM) edged up 0.1%.
  • Barrick Gold Corporation (ABX) dropped 2%.
  • Eldorado Gold (EGO) fell 2%.
  • Goldcorp (GG) was flat.
  • Kinross Gold (KGC) was unchanged.
  • Newmont Mining (NEM) sank 1.2%.
  • NovaGold (NG) rose 0.6%.
  • Yamana Gold (AUY) slid 1.1%.

Silver Miners

  • Coeur d’Alene Mines (CDE) fell 1.4%.
  • Hecla Mining (HL) declined 1.3%.
  • Pan American Silver (PAAS) sank 1.9%.
  • Silver Wheaton (SLW) rose 0.3%.
  • Silver Standard Resources (SSRI) dropped 1%.

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.

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