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 . Gold traded as high as $1,343 and as low as $1,318.70. Bullion closed in London at $1,325, according to .
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 () slid 1.4%.
- The iShares Gold Trust () sank 1.5%.
- The iShares Silver Trust () dropped 3.5%.
Mining ETFs declined during the day.
- The Market Vectors Gold Miners ETF () moved down 4.2%.
- The Market Vectors Junior Gold Miners ETF () tumbled 5.3%.
- The Global X Silver Miners ETF () fell 3.9%.
Gold stocks retreated on Thursday.
- Agnico-Eagle Mines () waned 2.3%.
- Barrick Gold () sank 5.4%.
- Eldorado Gold () dropped 4.8%.
- Goldcorp () slid 3.5%.
- Kinross Gold () tumbled 4.7%.
- Newmont Mining () fell 2.8%.
- NovaGold Resources () declined 4%.
- Yamana Gold () moved down 2.7%.
Silver mining shares pulled back hard during the day.
- Coeur d’Alene Mines () slid 3.6%.
- Hecla Mining () tumbled 6%.
- Pan American Silver () fell 2.5%.
- Silver Wheaton () plunged 7.1%.
- Silver Standard Resources () dropped 5.6%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of contributed to this report.
