Precious Metals, Miners and the Scaling Dollar
Later in the day on September 20, after rising gold prices fell on the US Federal Reserve’s indication of one more interest rate hike in 2017.
On September 20, gold futures for October expiry closed 0.44% higher than the previous day, ending at $1,312.5 per ounce.
Besides the dollar changes, investors are also closely watching the ongoing Federal Reserve Open Market Committee or FOMC meeting for a directional change in precious metals.
Among the four precious metals, gold (GLD) traded almost flat on Tuesday, September 19, after retreating for two days.
Precious metals saw a down day on Monday, September 18. Gold, silver, and platinum fell 1.1%, 3.1%, and 1.1%, respectively, on the day.
The miners that experienced the greatest losses during the past five trading days were IamGold (IAG), Silver Wheaton (SLW), Goldcorp (GG), and Primero Mining (PPP). These miners fell 7.5%, 6.0%, 6.2%, and 57.5%, respectively.
On September 18, gold fell 1.1% and closed at $1,306.90 per ounce. Of the precious metals, silver fell 3.1% and closed at $17.10 per ounce.
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Besides the drivers we mentioned in the previous part of this series for the decline in precious metals, another crucial factor is the European Central Bank’s stimulus program.
Gold futures fell on Friday, September 15. Gold saw a weekly loss after three straight weeks of gains. Gold was down almost 1.9% last week.
B2Gold (BTG), Goldcorp (GG), Newmont Mining (NEM), and New Gold (NGD) were down 2.9%, 2.5%, 2.8%, and 4.6%, respectively, on September 11.
Friday, September 8, 2017, was an up day for gold when it touched its one-year high of $1,358.50 per ounce.
Besides global concerns hovering over the precious metals, there has also been a push from US dollar index. which fell 0.68% on September 7. The index has fallen ~1.9% during…
Precious metals have been buoyed by tension in North Korea. If North Korea does another missile test, it could prompt investors to move to haven assets such as gold, silver, Treasuries, and major currencies.
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China’s gold demand increased ~10% year-over-year in 1H17.
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