On Thursday, gold (NYSEARCA:GLD) futures for December delivery increased $16.70 to settle at $1,796.50 per ounce, while silver (NYSEARCA:SLV) jumped 41 cents to close at $35.10. Gold hit an intra-day high of $1,797.70, its highest level all year.
Both precious metals climbed higher as the European Central Bank left its key benchmark interest rate at a record low of 0.75 percent for a third consecutive month. Central bank president Mario Draghi also said the region’s Outright Monetary Transactions plan was ready for use, but countries would still have to apply for aid and accept the imposed conditions.
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In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) increased 0.80 percent, while the iShares Silver Trust (NYSEARCA:SLV) gained 1.15 percent. Gold miners (NYSEARCA:GDX) such as Sandstorm Gold (NYSE:SAND) and Eldorado Gold (NYSE:EGO) jumped 6 percent and 1.5 percent, respectively. Meanwhile, silver miners such as Hecla Mining (NYSE:HL) and Coeur d’Alene Mines (NYSE:CDE) both gained more than 3 percent.
Shares of Silver Wheaton (NYSE:SLW) popped more than 5 percent to reach a new 52-week high. The company received positive remarks by TheStreet, which reiterated its rating as a Buy, citing revenue growth and a solid financial position with reasonable debt.
Investor Insight: Gold & Silver: Protection Against the Fed’s Punch Bowl
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Disclosure: Long EXK, AG, HL, PHYS