How Precious Metals Have Performed amid Volatility

1 2 3 4
Part 4
How Precious Metals Have Performed amid Volatility PART 4 OF 4

How Mining Stocks Responded to Mixed Precious Metal Movements

Mixed precious metal reaction

After touching their lowest mark in the past two months, gold prices marginally rebounded on Monday, March 6. The metal didn’t change much on Monday and closed at $1,224.5 per ounce. Platinum joined gold in its downward move and fell about 1.6%. Silver and palladium, however, rose about 0.16% and 0.80%, respectively.

The mixed reaction from precious metals caused mining stocks like Coeur Mining (CDE), Cia De Minas Buenaventura (BVN), Silver Wheaton (SLW), and Yamana Gold (AUY) to slump. These four metals fell 5.5%, 3.1%, 0.93%, and 3.1%, respectively, on Monday. Combined, these four mining stocks make up about 12.8% of the fluctuations in the VanEck Vectors Gold Miners Fund (GDX). The below chart shows the performance of gold and the gold mining sector, depicted here by the SPDR Gold Shares (GLD) and the VanEck Vectors Gold Miners (GDX).

[{"interval":86400,"data":[-0.3,-0.15,-0.78,null,null,0.23,-0.12,-2.12,-0.51,0.1,null,null,-0.01,0.32,-0.4,-0.09,0.09,null,null,null,-0.05,0.46,1.06,-0.77,null,null,null,0.85,-0.2,0.42,-0.06,null,null,0.28,0.21,0.63,-0.61,0.56,null,null,null,-0.04,-0.87,0.45,0.4,null,null,0.28,-0.42,0.18,0.02,0.56,null,null,0.36,0.28,0.54,-0.42,0.4,null,null,0.63,0.15,0.1,-1.03,0.92,null,null,0.07,-0.58,1.12,0.15,-0.51,null,null,null,0.71,0.05,0.18,-0.04,null,null,-0.61,-0.47,1.08,-0.18,0.56,null,null,-0.63],"units":"$","start":1481086800,"end":1488862800,"name":"SPDR Gold Trust Shs ETF (GLD)","metric":"Change from Open","source":"BATS Exchange","observation_start":null,"chart_type":"line"},{"interval":86400,"data":[-0.1396,0.1096,-0.5584,null,null,-0.1496,0.3092,-1.4458,-0.319,-0.1795,null,null,-0.09,0.42,-0.12,0.02,0.19,null,null,null,0.2,0.49,1.28,-0.87,null,null,null,0.69,-0.08,0.84,-0.29,null,null,-0.46,-0.06,0.18,-0.43,0.35,null,null,null,-0.12,-0.34,0.13,0.215,null,null,0.45,0.08,0.11,-0.06,0.34,null,null,-0.18,0.2,0.29,-0.03,0.12,null,null,0.5,0.16,0.01,-0.66,0.62,null,null,-0.05,-0.35,0.33,0.13,-0.5,null,null,null,0.14,-0.15,-0.36,-0.58,null,null,-1.26,-0.39,0.53,-0.56,0.47,null,null,-0.46],"units":"$","start":1481086800,"end":1488862800,"name":"Mkt Vector ETF Shs Gold Miners ETF Fund (GDX)","metric":"Change from Open","source":"BATS Exchange","observation_start":null,"chart_type":"line"}]

US dollar and gold

Much of the fluctuation in precious metals and mining funds is dependent on the directions of the US dollar (UUP) and interest rates. The rate hike and the US dollar are invariably connected. A rate rise could cause the US dollar to rise, and both these phenomena are negative for precious metal prices and stocks.

The US Dollar Index was down 0.2% to 101.4. Also, it saw a year-to-date loss of 0.56%. The US dollar and gold are inversely related to each other.

The popular SPDR Gold Trust (GLD), the world’s largest gold-backed ETF, saw its holdings fall about 0.56% to 840.6 tons on Friday, March 3.


Please select a profession that best describes you: