Volume dries up
Gold futures for February 2016 expiration fell about 0.6% on Wednesday, December 22, 2015, after striking gains for two consecutive days. Gold futures rose about 2.9% during the first two days of the current trading week. They settled at $1,074.10 per ounce on Wednesday, about $5.50 lower than the previous day’s close. The volume also seemed to be comparatively dried up during Wednesday’s trade.
Silver, however, moved little on Wednesday, ending the day flat at $14.30 per ounce. The trading range for the day also remained narrow, from $14.20–$14.40 per ounce. Platinum, like gold, also retreated and fell 0.94%, giving a close of $873.20 per ounce. Palladium was the only precious metal that saw an up day, adding 0.23% to the previous day’s close. The trading range for palladium also remained narrow, from $550–$559 per ounce. Volume was also marginal.
Performance of ETFs and miners
Mining-based equities such as Gold Fields (GFI) and Coeur Mining (CDE) rose 1.8% and 2.8%, respectively. Yamana Gold (AUY) and Sibanye Gold (SBGL) fell 3.2% and 3.3%, respectively. Together, these four companies contribute 10.8% of the price changes in the VanEck Vectors Gold Miners ETF (GDX).
The current price of gold is trading about 0.51% above its 20-day moving average of $1,068.60 per ounce. Silver is also trading 1.5% above its 20-day moving average of $14.10. All-in-all, it seems that the rate-hike phenomenon may continue to affect the prices of precious metals in the coming year, and it continues to pose a weakness in the precious metals market.