Like the US dollar, global tensions can be responsible for precious metal price fluctuations. North Korea has interpreted US president Donald Trump’s comments as a declaration of war, stating that Pyongyang has…
Between the top two precious metals—gold and silver—silver is known to be more volatile.
Rising tensions in North Korea, heightened political uncertainty in Washington, and policy changes by the Fed have all moved precious metals in August and September.
Like silver, platinum has industrial uses and has seen growing demand in China.
Besides geopolitical issues, the US dollar has also been playing an important role in the determination of the price movement for precious metals.
All four precious metals except platinum had an up day on Friday, September 22, 2017, as tensions in the North Korean peninsula got stronger.
Most precious metals witnessed a rebound in price on Friday, September 22, 2017, after falling for a few days. Gold closed slightly above the previous day’s close of $1,293.30 per ounce.
Precious metals traded lower on September 21 after the Fed gave a hawkish tone at Wednesday’s FOMC (Federal Open Market Committee) meeting.
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.