Gold prices rise

On June 19, gold prices rose to the highest level in close to four weeks, trading at more than $1,203 per ounce. The rise came in response to the Fed’s decision to keep the interest rate near zero levels for the time being. This gave a lease on life to gold and other non-interest–earning precious metals.

An increase in the interest rate increases the opportunity cost of holding gold. An interest rate hike also increases the attractiveness of alternative interest-bearing assets such as bonds.

Gold Prices Rise Last Week on Heels of Fed’s Rate Stance

How are gold ETFs performing?

The SPDR Gold Trust (GLD), the ETF that tracks the price of spot gold, rose 1.8% in the two days after the Fed’s meeting last week. The VanEck Vectors Gold Miners ETF (GDX), on the other hand, rose 4.2% for June 17 and 18. However, the fund gave away some of the gains on June 19 when it fell by 2.4%.

Gold indicators

In this series, we’ll be looking at factors like the latest Fed meeting and the impacts on gold prices. We’ll also see how developments in Greece are likely to affect gold prices. In addition, we’ll take a close look at the following factors:

  • US labor market
  • Shanghai Gold Exchange withdrawals
  • gold ETF holdings
  • CPI (Consumer Price Index) inflation

We’ll see how some of these factors impact the Fed’s rate hike decision. The Fed’s looming rate hike has been the single most important variable to impact gold prices lately.

These indicators should point you in the same direction as gold prices. They’ll also suggest movements in share prices for companies such as Goldcorp (GG), Royal Gold (RGLD), Silver Wheaton (SLW), and Kinross Gold (KGC). Combined, these companies account for 19.1% of GDX.

Latest articles

With voting conducted in seven phases panning six weeks, India’s (EPI) elections have been a grand affair—to say the least. Tomorrow is the day of the results.

Qualcomm (QCOM) stock fell more than 10% in the first half of trading on May 22 after it lost its licensing lawsuit with the US FTC (Federal Trade Commission).

Apple (AAPL) suffered a setback recently when the US Supreme Court allowed an antitrust lawsuit against the company to proceed.

Today doesn’t seem to be a good day for electric vehicle companies. Earlier today, NIO stock hit an all-time low of $4.00.

22 May

Cannabis Stocks Struggle to Find Direction


The cannabis sector has been struggling to find direction on May 22, with cannabis stocks trading on a largely mixed note in the first half.

The US equity markets have come under pressure this month because of the ongoing US-China trade war.