How the Dollar Has Kept a Close Eye on Precious Metals
Precious metals take much of their price fluctuations from changes in the US dollar. Lately, their association has been highlighted.
Though the relationship between gold and the US dollar is strong, the equity market remains a core contributor to the rises and falls in gold.
The rationale behind choosing the passively managed approach is evident in the genesis of GDX, which launched in 2006 as the first gold miners ETF offered in the U.S.
One of the dominant financial trends of the past decade has been a move by investors out of actively managed funds and into passively managed index funds or exchange traded funds (ETFs).
Mining companies have shifted their focus to debt reduction by selling non-performing assets, rejecting future capital expenditure, and reducing their workforce.
The actively managed VanEck International Investors Gold Fund (INIVX) affords investors the opportunity to add gold mining exposure through a more specialized approach.
Although gold has experienced some consolidation recently, we still maintain our positive outlook for the metal and believe that investors would be wise to consider their exposure to gold stocks….
With the downturn in commodities (DBC), most organizations stopped their discretionary spending and improved their operational efficiency.
Each year in mid-September, top managements of gold companies converge on Colorado for the Precious Metals Summit and the Denver Gold Forum.
Gold bullion ended September at $1,315.75 per ounce for a 0.5% gain while gold stocks experienced more positive returns. The NYSE Arca Gold Miners Index1 (GDMNTR) posted a 3.8% gain,…
In September, gold (GDXJ) prices rose sharply against all major currencies except the yen.
Gold has fallen below $1,300 per ounce and broken below the longer-term trend line that had been established this year.
Since hitting its post-Brexit highs in July, gold had been consolidating in a narrow $1,300-to-$1,350-per-ounce range.
The difference between yields on ten-year US notes and similar-maturity TIPS, a gauge of price expectations, expanded to as much as 1.7% last Tuesday.
In the past one month, gold has seen a tremendous fall. From close to $1,350 an ounce, it has drifted to the $1,250 an ounce mark.
Gold takes many of its cues from overall market volatility. The increasing unrest and market changes have been driving gold recently.
The US dollar was also behind the increase in gold prices on Thursday.
Gold fell once again on Tuesday, October 11, 2016, after a Monday rebound. It fell 0.36% and closed at $1,255.90 per ounce.
Due to the massive price loss in gold over the past week, investors are losing steam in the metals. The open interest in gold futures is falling.
Overall market volatility has been an important determinant in precious metals’ price movement. Gold, silver, platinum, and palladium rose on October 10.