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Gold and Silver Rose, Platinum and Palladium Ended Flat

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Gold and silver rose

Gold climbed to its four-week high on Monday, June 13, 2016. Gold’s strength was supported by a weaker dollar and a slide in Asian stocks ahead of the main economic events lined up for the week. The monetary policy statement from the Bank of Japan, the Fed’s meeting, and Brexit concerns all had a firm grip on precious metals. Gold closed 0.86% higher at $1,286.9 per ounce. Silver rose 0.65% to $17.4 per ounce. Platinum and palladium traded almost flat.

The major global economies were expected to hold their monetary policies steady as global economic unrest was high.

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US dollar fell

The US dollar fell to a one-month low against the yen. It stood at 106.03 yen—down about 0.9%. The US dollar is depicted here by the US Dollar Index. It measures the dollar’s strength against a trade-weighted basket of these six major currencies—euro, yen, pound, Canadian dollar, Swedish krona, and Swiss franc. The US dollar increased during the past month. DXY fell 0.02% on Monday. This prompted gains in dollar-denominated assets like precious metals.

Miners and funds reacted

The fluctuations in the US dollar, followed by changes in precious metals, bought about changes in mining shares and mining-based funds. The miners that rallied on Monday include Barrick Gold (ABX), Coeur Mining (CDE), and Pan American Silver (PAAS). These three shares increased 3.1%, 4.7%, and 0.33%, respectively, on Monday. Together, these three miners contribute 8.9% to the changes in the VanEck Vectors Gold Miners Fund (GDX).

The mining-based funds that had a strong month due precious metal gains were the VanEck Vectors Junior Gold Miners Fund (GDXJ) and the Global X Silver Miners Fund (SIL). These two indicators rose 5.6% and 3.9%, respectively, on a 30-day trailing basis.

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