Are Gold Lovers Holding On to Their Precious Metals? PART 1 OF 5
What’s Still Keeping a Strong Hold on Precious Metals?
Precious metal movement
Gold saw a down day on Wednesday, November 15, 2017, after two sessions of rising prices. Gold futures for December delivery were 0.41% lower for the day and ended at $1,277.70 per ounce. Silver also joined gold and retreated 0.6% to close at $17 per ounce. Palladium was almost flat, falling a marginal 0.05% to end at $985.10 per ounce. Platinum also traded lower for the day and closed at $931.50 per ounce.
Gold prices have now marked the first loss in three sessions. Gold and silver were trading higher during the last two days, mainly due to the fall in the US dollar. The dollar is depicted by the DXY Currency Index, which has seen a five-day trailing loss of 1.1%.
Lately, the US dollar (UUP) is one of the most crucial elements playing precious metals (IAU) (SLV) and mining shares. The DXY remained unchanged on Wednesday, November 15, 2017, closing at 93.8.
The recent flurry in the equity markets may have also caused a decline in demand for haven assets such as gold and silver. As the stock market soars, more investors are drawn to equities in hopes of higher returns, thus affecting the demand for precious metals.
Although mining shares belong to the equity market, they mostly take their price changes from precious metals. Among the mining shares that saw an up day on Wednesday are Iamgold (IAG), Kinross Gold (KGC), Hecla Mining (HL), and Alacer Gold (ASR).