Muted gains for precious metals
Compared to the substantial gains in precious metals on Tuesday, the gains yesterday were muted. Gold futures for June expiration rose minutely by 0.02%. Gold ended the day at $1,254.4 an ounce and touched the day’s high of $1,259.8. Silver, platinum, and palladium also increased 0.96%, 1.2%, and 2.6%, respectively.
Silver closed at $17.1 an ounce after touching an 11-month high of approximately $17.3. Silver has outperformed other precious metals over the past five trading days. Silver surged 7.6% on a five-day trailing basis. Other precious metals were lower. Silver is likely reacting more as an industrial metal than a precious metal, and it’s been boosted by the increasing optimism for China.
Despite the good news from the east, precious metals investors may carefully eye economic data from the United States, as that will lead to whether or not the Federal Reserve raises interest rates.
Mining funds and shares
The increased risk appetite also boosted global stocks, which tracked oil prices higher. The rebound in equities and oil likely caused the loss of haven appeal in the metals. Though metals marginally rose, the funds that track the miners fell on Wednesday. The Global X Silver Miners ETF (SIL) and VanEck Vectors Gold Miners ETF (GDX) fell 1.2% and 1.8%, respectively.