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Silver Still Shy of $15.50, Volatility Spiked

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Precious metal performance

The price changes in the precious metals year-to-date have been moving sharply. While gold and silver moved upward, platinum and palladium maintained a downward trend. However, platinum covered all its initial losses and gained about 5% on a year-to-date basis. Palladium is still lagging and has a year-to-date loss of 6.8%.

Platinum closed at $934.20 per ounce on Wednesday, February 10. It smoothly entered the $900 territory during the past week, gaining 3.5% on a five-day trailing basis. The speedy recovery of platinum allowed it to trade at a 3.4% premium to its 100-day moving average price of $903.40 per ounce. Palladium also gained 1.7% during the past five trading days and closed at $524.70 per ounce.

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Technical indicators

Silver rose by 3.7% on a five-day trailing basis and touched a high of $15.48 on Monday, February 8, remaining shy of the $15.50 mark. The volatility in silver prices spiked to almost 37% on Tuesday, February 9. The RSI (relative strength indicator) for silver was at 71 on Tuesday. RSI is a technical indicator that signifies overvaluation above 70. On Wednesday, February 10, silver dropped 1.1% and closed at approximately $15.30.

Silver future prices are currently trading at a 4.1% premium from its 100-day moving average price of $14.70 per ounce. The rise in the price of silver also lifted up the silver-based mining stocks Silver Wheaton Corp. (SLW), Hecla Mining (HL), and Pan American Silver Corp. (PAAS). These three stocks increased 20%, 16%, and 26.7%, respectively, during the past trading month. These three miners together contribute 7.8% to the VanEck Vectors Gold Miners ETF (GDX). GDX gained 23.1% on a 30-day trailing basis.

The Global X Silver Miners ETF (SIL) and the leveraged Proshares Ultra Silver ETF (AGQ) also rose by 11.8% and 20%, respectively, on a 30-day trailing basis.

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