Gold and Silver Climb Higher After ECB Rate Cut
On Thursday, gold (NYSEARCA:GLD) futures for June delivery, the most active contract, jumped $21.40 to close at $1,467.60 per ounce, while silver (NYSEARCA:SLV) futures for July gained 49 cents to finish at $23.83.
Both precious metals climbed higher as the European Central Bank cut its benchmark interest rate by 25 basis points to 0.50 percent, the first rate cut since July 2012.
ECB President Mario Draghi explains, “Our monetary policy stance will remain accommodative for as long as is needed.” He also said the central bank is “technically ready” to cut deposit interest rates below zero.
The U.S. dollar index hit as high as 82.35 on the news, while the euro declined for the first time in five days.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) gained 0.60 percent, while the iShares Silver Trust (NYSEARCA:SLV) increased 0.70 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Barrick Gold (NYSE:ABX) jumped 3.2 percent and 1.9 percent, respectively. Shares of Endeavour Silver (NYSE:EXK) edged 0.50 percent higher.
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Disclosure: Long EXK, AG, HL, PHYS