Reading Mining Performances So Far in April
Last month, many miners saw their prices rise due to the revival in precious metals.
On April 19, the implied volatilities of First Majestic Silver, Royal Gold, New Gold, and Agnico-Eagle Mines stood at 60.6%, 33.5%, 54.9%, and 39.3%, respectively.
The iShares Gold Trust (IAU) and the iShares Silver Trust (SLV) have seen massive YTD (year-to-date) gains of 12.1% and 14.8%, respectively.
Another important phenomenon that played on the fall of precious metals on Wednesday, April 19, was the upswing of the US dollar.
After witnessing six straight days of increase, gold futures for May expiration had a down day on April 19, 2017.
The EIA estimates that natural gas prices could average $3.10 per MMBtu in 2017. Natural gas prices could average $3.45 per MMBtu in 2018.
PointLogic reported that US natural gas consumption fell 6% on April 13–19, 2017. Consumption fell 10.9% from the same period in 2016.
PointLogic reported that weekly US dry natural gas production fell 0.3% to 69.9 Bcf (billion cubic feet) per day on April 13–19, 2017.
Baker Hughes (BHI) will release its weekly US natural gas rig count report on April 21, 2017. The rig count fell by three to 162 rigs on April 7–14, 2017.
The EIA estimates that US natural gas inventories will be 3,861 Bcf by the end of October 2017—0.70% lower than the five-year average.
The EIA reported that US natural gas inventories rose by 54 Bcf to 2,115 Bcf on April 7–14, 2017. Inventories rose 2.6% week-over-week but fell 14.8% YoY.
US natural gas futures for May delivery rose 0.45% and were trading at $3.17 per MMBtu in electronic trading at 5:10 AM EST on April 21, 2017.
As of April 20, 2017, natural gas prices were 21.1% below their 15-month high. They fell due to warmer-than-normal weather for this time of year.
At ~65.0%, the Energy Select Sector SPDR ETF (XLE) showed the highest correlation with US crude oil between March 20, 2017, and April 20, 2017.
From April 13–20, 2017, the United States Natural Gas ETF (UNG) fell 1.8%, and natural gas futures fell 2.1%.
From April 13–20, 2017, the Energy Select Sector SPDR ETF (XLE) fell 1.7%. It was the largest loser among the sector-based SPDR ETFs we’re comparing.
From April 13–20, 2017, the United States Oil ETF (USO) fell 5.3%. In the trailing week, WTI crude oil June futures fell 5.4%.
On April 20, 2017, US crude oil futures contracts for June delivery closed at $50.71 per barrel, a ~0.30% fall over the previous trading session.
Gold (GLD) and silver were stable in the early hours amid terrorist attacks in Paris. Platinum and palladium are slightly weaker in the early hours.
China’s credit metrics and iron ore prices Financing is crucial to growth, as it stimulates consumption and investment in an economy. By tracking credit growth in China (MCHI), investors can gauge patterns that forecast…