What Oil Is Doing to Gold and Silver Now
Oil and gold
Tumbling oil prices led to a rise in precious metals on Friday, May 26. Gold, silver, platinum, and palladium rose 0.93%, 0.44%, 1.1%, and 2.4%, respectively. Gold prices rose to $1,271 per ounce, ending the day at $1,269.7. Gold showed a weekly gain of 1.1%.
OPEC (Organization of the Petroleum Exporting Countries) members and non-members led by Russia decided on Thursday, May 25, to extend the previous cuts in oil output by nine months to March 2018. As crude oil prices have also substantially slumped over the past year, oil producing companies saw their revenues suffer. These output cuts have continued to have a negative impact on oil prices.
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All eyes on the Fed
Silver also saw its biggest weekly rise since April. Platinum rose 2.4% during the week and is now set to notch its third straight weekly increase. Palladium has gained 3.5% over the past week and is on track for its first weekly gain in May.
Gold has prominently moved sideways in the $1,245–$1,265 range during the past few sessions. Investors are watching for clues from the Federal Reserve for its direction on the interest rates, which will certainly impact precious metals.
Notably, the precious metal mining funds that followed the direction of precious metals on Friday, May 26, include the Global X Silver Miners Fund (SIL) and the Sprott Gold Miners (SGDM), which rose 0.73% and 0.84% that day.