Gold Miners Climb Higher as BOJ Printing Kicks into Overdrive

On Thursday, gold (NYSEARCA:GLD) futures for June delivery, the most active contract, dipped $1.10 to close at $1,552.40 per ounce, while silver (NYSEARCA:SLV) futures for May edged 3 cents lower to finish at $26.77.

Although gold declined for its third consecutive day, it finished well above the intra-day low of $1,539.40. The Bank of Japan announced yet another round of monetary stimulus to fight deflation. The central bank’s new governor Haruhiko Kuroda committed to nearly doubling Japan’s monetary base to 270 trillion yen by the end of 2014. It also set a goal of 2 percent inflation by the end of 2014.

Kyle Bass, found of Hayman Capital, placed the move in perspective while speaking to CNBC. He explains, “The BOJ will be buying assets at roughly 75 percent of the rate of the U.S. Fed, on an economy that’s one-third the size of the U.S.”

In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) and iShares Silver Trust (NYSEARCA:SLV) both fell about 0.20 percent. However, gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) jumped 1.4 percent and 3.2 percent. Meanwhile, Endeavour Silver (NYSE:EXK) surged 5.0 percent.

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Disclosure: Long EXK, AG, HL, PHYS