In times like these, monitoring the implied volatilities of large mining stocks is all the more important.
Before the Fed’s rate hike decision on March 15, gold had retreated for nine days in a row, touching its lowest mark of $1,195 per ounce.
The precious metal market had experienced a slump in the days leading up to the Fed’s decision to hike the interest rate on March 15.
Prior to the Fed’s rate hike on March 15, precious metal investors had been keeping a close eye on the employment figures released on Friday, March 10.
When analyzing the precious metals market, it’s important to take a look at the relationship between gold (IAU) and silver (SLV).
Among the four precious metals, palladium has been the most resilient for the past few months, outperforming the other three so far this year.
As platinum markets are looking at a deficit in supply in 2017, the fundamentals for the price of these metals seem supportive.
Precious metals investors are carefully watching the overall market sentiment. The performance of the economy will likely determine the course of interest rate hikes by the Federal Reserve.
Compared to last week’s slump, precious metals prices rebounded on March 13, 2017. Haven demand for precious metals likely resurfaced ahead of the elections in Europe.
The directional move of the interest rate is a crucial determinant of the direction precious metals will take.
The US equity markets (SPY) (SPX) have rebounded since President Trump took office. As expected, precious metals have fallen in the past few months.
Fluctuations in the prices of precious metals depend largely on the direction of US interest rates.
Precious metals fell again on Friday, March 3, 2017. The most important factor playing on precious metals is the interest rate phenomenon.
After touching their lowest mark during the past two months, gold prices marginally rebounded on Monday, March 6.
Just as overall market sentiment is affecting precious metals, inflation figures have also had a significant impact.
The monthly US jobs report was released on Thursday, and it had a significant impact on precious metals.
Precious metals fell on Thursday, March 2, 2017, as the US dollar firmed.
Fluctuations in precious metals could take a lot from crucial economic numbers that come out of the United States.
One of the most crucial factors playing on precious metals over the past few months is the interest rate hike.
Precious metals are dollar-denominated assets, and the demand for these assets usually falls when the dollar rises.