Sharp rise for precious metals
Precious metals saw a price rally in their prices on September 6, 2016, after the previous day’s trading holiday. Gold futures for December expiration rose by a whopping 2.1% and closed at $1,354 per ounce. The rally calmed down on September 7, and gold fell by a minute 0.38%.
Silver, platinum, and palladium also saw significant surges in their prices on September 6. Silver rose by 4%, closing at $20.1 per ounce, while platinum rose by 3.8%, closing at $1,102.7 per ounce. Palladium also remained a top notch player on the day, rising by 4% and ending the day at $700.6 per ounce. All four precious metals saw falls on September 7 after the previous day’s massive gains.
Funds and miners followed
The revival in these precious metals was most likely due to a sticky downward sentiment from the US economic numbers. Haven bids on precious metals tend to rise on disappointing economic numbers. The economic data reinforced speculation in the market that the Federal Reserve wouldn’t raise interest rates at its September policy meeting, giving precious metals some breathing room.
Alongside the rise in precious metals, mining shares and funds also saw tremendous rises in price. Mining funds such as the Global X Silver Miners ETF (SIL) and the SPDR S&P Metals and Mining ETF (XME) ended up with five-day-trailing gains of 11.3% and 4.5%, respectively, on September 6.
The mining shares that saw the biggest gains on September 6 included Coeur Mining (CDE), Alacer Gold (ASR), and Eldorado Gold (EGO). These three equities rose by 10.5%, 7.3%, and 8.2%, respectively. Combined, these three miners make up 5.4% of the fluctuations in the VanEck Vectors Gold Miners ETF (GDX).