Metals and miners rose
As the precious metals climbed steadily after the FOMC (Federal Open Market Committee) meeting on March 17–18, the gains in these metals significantly spread to miners. Gold, silver, platinum, and palladium have risen 1.1%, 3.7%, 2%, and 5.5%, respectively, on a trailing-five-day basis. Following the gains in these precious metals, the mining companies that have performed the best include Coeur Mining (CDE), and First Majestic Silver (AG), and B2Gold (BTG). These three stocks have risen 17.8%, 22%, and 23.5% respectively, on a trailing-five-day basis.
The gains in these precious metal–based investments are due to the postponement of the interest rate hike amid the global turmoil. The ECB (European Central Bank) has also pointed to further interest rate cuts if the economy fails to pick up.
The precious metals are non-interest–bearing investments and often lose their allure as interest rates rise. However, under the current circumstances, in which there’s little possibility of interest rates rising, with many economies even implementing negative interest rates, precious metals tend to rise.
The fund flows in the most famous gold-based ETF, the SPDR Gold Shares (GLD), have been positive for most of the current year. However, according to data from the U.S. Commodity Futures Trading Commission, there was a reduction in bullish bets on gold on March 15. GLD has risen 0.92% on a trailing-five-day basis.
Together, CDE, AG, and BTG make up about 3% of the VanEck Vectors Gold Miners ETF (GDX). GDX has risen 7.6% on a trailing-five-day basis.