What’s Contributing to Fluctuations in Precious Metals?
Precious metal movement
Gold and other precious metals increased due to geopolitical tensions around the world. Gold rose ~4.9% during the past 30 trading days. On April 18, gold rose almost 0.17% and ended the day at $1,292.4 per ounce. The other three precious metals had a down day. Silver, platinum, and palladium fell 1.3%, 1.2%, and 2.2%, respectively, on Tuesday.
Silver ended the day at $18.3 per ounce, while platinum and palladium fell to $976.1 and $770.9 per ounce, respectively.
The DXY Currency Index, or DXY, also witnessed a fall on Tuesday. It fell 0.79% from the previous day. Although the fall in the US dollar lifted gold higher, it wasn’t able to lift other dollar-denominated precious metals higher.
Interested in AEM? Don't miss the next report.
Receive e-mail alerts for new research on AEM
The US dollar has been a crucial determinant in metal fluctuations in the past year. The rise in the dollar often makes dollar-based assets less lucrative for investors from other countries. A fall in the dollar increases the demand for precious metals. A falling dollar could be the major contributor to the increase in gold and other precious metals.
Economic turbulence, extended by President Trump, contributed to safe-haven bids for gold. Unrest in other parts of the world, like Syria and North Korea, also contributed to gold’s higher price.
Gold and silver-based funds including the iShares Gold Trust (IAU) and the iShares Silver Trust (SLV) rose 3.3% and 0.52% on a 30-day trailing basis. Gold usually attains more safe-haven bids than silver during market turbulence.
Most mining shares fell on Tuesday. The shares include Agnico-Eagle (AEM), Primero Mining (PPP), Silver Wheaton (SLW), and Alamos Gold (AGI). These four stocks fell 0.58%, 2.9%, 0.45%, and 2.1%, respectively.