On the macroeconomic front, the U.S. dollar remained under pressure after U.S. Federal Reserve commentary on monetary policy, which indicted that inflation remains “below target.” The Fed suggested it would lower the balance sheet by September, which also led to speculation that there was no rush to raise interest rates.
The Dow Jones Industrial Average climbed 1.16% to 21,830.31 and the S&P 500 Index closed relatively flat at 2,472.1. The Philadelphia Gold & Silver Index gained 2.3% to finish at 85.86, with gold prices nearing seven-week highs at 1,268.40 per ounce. West Texas Intermediate crude jumped 8.6% en route to a US$49.71-per-barrel close.
Copper companies gained as the red metal surged towards two-year highs. Copper increased 5.7%, or US15.5¢, en route to a US$2.87 per lb. close.
Toronto-based red metal producer Hudbay Minerals gained 14% before finishing at US$7.65 per share. Freeport-McMoRan rose 12% before closing at US$14.60 per share, and Turquoise Hill Resources finished up 12% at US$3.20 per share.
Meanwhile, U.S. gold major Newmont Mining had a strong quarterly performance. Shares jumped 7.8% before closing at $37.06. Newmont produced 1.4 million oz. gold during the second quarter at all-in sustaining costs of US$884 per ounce. The company generated operating cash flow of US$526 million and adjusted earnings of US36¢ per share.
Eldorado Gold declined after a quarterly financial report of more sociopolitical issues at its projects in Greece. The company’s shares dropped 9.6% before closing at $2.26 after the company reported more delays at its Olympias Phase II and Skouries development projects.
Eldorado has yet to receive an arbitration notice from the Greek government, but the process could take four months. Commercial production at Olympias Phase II is expected to be delayed until year-end, while Skouries was pushed back one year to 2020.