Gain in precious metals
Precious metals rose on Friday, December 18, 2015, after falling on Thursday. Precious metals seem to be following an alternating pattern since the Fed gave its verdict on the interest rate hike. Gold futures for February delivery rose by 1.5% and closed $15 higher. They settled at $1,065 per ounce. Gold almost touched its five-year low level during the fall on Thursday. Silver rose by 2.9% and closed $14.1 per ounce on Friday. Silver was the top performing precious metal on Friday.
Platinum and palladium also followed the leading precious metals. They rose by 1.9% and 0.27%, respectively.
The gains in the precious metals were followed by gains in precious metal-based ETFs and the mining sector. The iShares Silver Trust (SLV) and the iShares Gold Trust (IAU) rose by 2.6% and 1.4%, respectively, on Friday. Currently, gold and silver are ranked at 11 and 14 respectively on the commodities market. They’re depicted by the S&P GSCI (Goldman Sachs Commodity Index). It contains 24 commodities.
Mining stocks like Gold Fields (GFI), Agnico Eagle Mines (AEM), and Silver Wheaton (SLW) also gave positive returns in Friday’s trade. These stocks rose by 0.38%, 4.1%, and 3.5%, respectively, on Friday. The stocks account for 13.6% of the price changes in the VanEck Vectors Gold Miners ETF (GDX). GDX rose by 2.2% on the same day.
The precious metals and the precious metal miners could have a tough time fighting the upcoming interest rate hikes in 2016. The recovery gains it keeps seeing could give falling precious metals a breather.