The fall in gold on Tuesday, July 25, 2017, was most likely due to the rise in the equities market that same day.
Gold hit a four-week high on July 24, 2017. Gold futures for August expiration touched a high of $1,259 per ounce on the day, ending up at $1,254 per ounce.
When an investor considers parking their money in haven assets and wonders whether gold or silver is the right choice, it’s a good idea to look at the spread.
July 20, 2017, was an up day for the euro, which put downward pressure on the US dollar as represented by the U.S. Dollar Index (or DXY).
Precious metals have witnessed downward pressure over the past few months due to the expectation that US monetary policy is on a tightening path.
Precious metals saw an up-day on July 20, 2017, after Mario Draghi said that policymakers would discuss potential changes in the bond-buying program in autumn.
Precious metals were on the path to recovery last week, mainly due to the fall witnessed by the US dollar. The U.S. Dollar Index fell ~1% in the week.
So far, palladium has been stronger than the other precious metals in 2017. It has seen a YTD (year-to-date) gain of 26.5%.
When reading the platinum market, it’s important to analyze the comparative performance of platinum and gold by using the gold-platinum ratio or spread.
Precious metals reversed some of their losses on Monday, July 17, 2017.
In addition to the slump in the dollar, which we discussed in our previous article, another factor that affects precious metals is expectations surrounding interest rate hikes.
On Monday, July 17, gold futures for August expiration closed at $1,233.7 an ounce after having touched the day’s high of $1,235.4 per ounce.
For now, it seems that money managers are moving away from gold holdings (GLD).
On July 12, the gold–silver spread was 76.4. This ratio indicates that it takes almost 76 ounces of silver to buy a single ounce of gold.
Unemployment claims came in at 247,000, slightly higher than the forecast 245,000.
Precious metals saw a down day on Thursday, July 13, 2017. Gold, silver, platinum, and palladium traded lower due to a renewed increase in bond yields.
The precious metal–based mining funds that rose on Wednesday, July 12, included the Sprott Gold Miners ETF (SGDM) and the iShares MSCI Global Gold Miners ETF (RING).
When the Federal Reserve chair, Janet Yellen, presented her testimony on July 12, she reiterated that further increases were likely warranted. This could be negative in the long run for precious metals.
Gold futures for August expiration touched a low of $1,209.6 an ounce and ended the day at $1,212.1 on Monday, July 10.
Frozen concentrated orange juice (or FCOJ-A) futures this week were trading broadly lower compared to the levels a week ago.