Market volatility impacts precious metals. Even amid the rising interest rate, if market volatility rises, investors can expect gold to increase.
Uncertainty in the market impacts precious metals and precious metal stocks. Barrick Gold has the lowest correlation to gold YTD (year-to-date).
The buoyancy of precious metals could be challenged even more by future interest rate hikes, as the Fed indicated by its latest hike on March 15.
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.
Both beverage giants have recorded positive segment revenue, earnings, and cash flow, but PepsiCo has a better valuation than Coca-Cola.
Both Pfizer and Merck are enjoying comfortable dividend payoff scenarios by generating positive segment revenues, earnings, and cash flows.
But XOM managed to generate positive segment revenue and earnings in 2016, which places XOM in a better position than CVX for dividend chasers.
AT&T’s stronger free cash flow position as compared to Verizon’s could very likely make it an attractive destination for dividend-chasing investors in 2017.
After starting the week on a positive note, the S&P 500 pulled back on Tuesday. Weakness in oil prices weighed on energy shares and pulled the market lower.
When analyzing the precious metals market, it’s important to take a look at the relationship between gold (IAU) and silver (SLV).
Precious metals investors tend to keep a close eye on the performance of the precious metal mining stocks.
Uncertainty in the market since the election has boosted precious metals and precious metal mining companies.
Precious metal stocks (IAU) (SLV) are often more carefully synced to the metals that they mine than they are to the overall equity market.
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.
The past few weeks have choppy for precious metals due to concerns surrounding the Federal Reserve’s interest rate hike.
Uncertainty in the market significantly affects the performances of precious metals. It also affects precious metals mining stocks, which are known to closely track precious metals.