uploads///Gold Futures Day Chart and Pivots

Rising Equities Put a Dent in Gold

By

Jan. 26 2016, Updated 1:20 p.m. ET

Gold loosens up

Gold futures for April delivery retreated 0.15% on Friday, January 22, 2016. The strength gained by the equity markets weighed down gold’s haven appeal that had raised the price of gold since the beginning of the year. Risk-aversion was likely fueled by the markets.

Oil toppled to its 12-year low, and equities joined in. Investors flocked to haven assets like Treasuries and gold, which raised their prices. However, a rebound in oil prices buoyed stocks and put a dent in gold. Gold closed at $1,096.30 per ounce after touching a low of $1,094.1 per ounce on January 22. It reached a high of $1,103.20 that day, as you can see in the graph below.

Article continues below advertisement

Other precious metals

The fall in gold and its loss of haven appeal also extended to silver. Silver fell 0.26%, closing at $14.30 per ounce on January 22. Platinum and palladium, however, rebounded 1.5% and 0.89%, respectively, that day. The crushing prices of these two precious metals were most likely due to the slump in the stock market and their high industrial usage. Platinum and palladium futures closed at $831.60 and $499.90 per ounce, respectively.

The SPDR Gold Shares (GLD) rose to 1.8 metric tons on Thursday, January 21, 2016, which aggregated the week’s inflow of 4.2 metric tons for the week. The overall rise and fall in gold prices have also affected mining-based companies.

Goldcorp (GG), Royal Gold (RGLD), and New Gold (NGD) rose 3.3%, 2.5%, and 2.5%, respectively. These companies make up 14.1% of the VanEck Vectors Gold Miners ETF (GDX), which rose 0.93%.

Advertisement

More From Market Realist

  • Open sign on a sidewalk
    Macroeconomic Analysis
    Top Reopening Stocks to Play the Shifting Market Sentiment
  • Morgan Stanley sign and stock numbers
    Macroeconomic Analysis
    Morgan Stanley's Buyback Stock Picks in 2021
  • Black Wall Street sign is sign of ethical investing
    Macroeconomic Analysis
    Ethical Investing Stocks and Funds for Your 2021 Portfolio
  • New York City skyline and Goldman Sachs logo
    Macroeconomic Analysis
    Goldman Sachs: Options Trade Picks to Play Earnings Season Volatility
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.