How Different Factors Keep Pulling Precious Metals Lower

Precious metals have been on a clear downward trajectory for the past few months. As the US dollar has affected gold, there have also been three other precious metals reacting according to the changes in the currency in which they’re priced.

Silver rose 0.1% and traded at almost $16.1 per ounce. Silver had touched $15.6 in the previous session, which was its lowest level since April 11, 2016. Platinum rose 0.4% to $919.4 per ounce. Palladium, however, fell 0.2% and ended the day at $662.5 per ounce.

As the dollar is in focus, so is the Federal Reserve. Both of these important factors play on precious metals. The crucial link between gold and the US two- and ten-year rates of interest offered on Treasuries is shown above.

Besides the Federal Reserve and the US dollar, another significant contributor to changes in the prices of precious metals is the overall volatility in the market. Investor confidence seems shaky in precious metals after their tremendous falls. Precious metals volumes may also have shrunk in recent months due to the upcoming Christmas holidays.

The fluctuations in these metals are also reflected in mining funds such as the iShares MSCI Global Gold Miners ETF (RING) and the VanEck Vectors Gold Miners ETF (GDX). These funds have witnessed losses over the past month due to changes in gold. 

Mining shares such as GoldCorp (GG), Silver Wheaton (SLW), Coeur Mining (CDE), and Eldorado Gold (EGO) have also seen their share prices fall due to falling precious metals.