uploads///Gold and Silver Movements

Behind Gold’s 4-Week High

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Jul. 26 2017, Published 4:29 p.m. ET

Movements in gold and silver

Gold hit a four-week high on July 24, 2017. Gold futures for August expiration touched a high of $1,259 per ounce on the day, ending up at $1,254 per ounce. However, the day’s close was still marginally lower than its close on Friday.

Silver joined gold in its slight fall on July 24. Silver fell 0.09% on the day, ending at $16.4 per ounce. Platinum remained the biggest loser of the day, falling 0.56% and closing at $929.4 per ounce. Palladium was the only precious metal to rise, ending the day at $854.3 per ounce.

Gold and silver have seen substantial recoveries in their prices over the past week, rising 1.7% and 2.1%, respectively, on a trailing-five-day basis.

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The dollar’s influence

The revival in precious metals has likely been due to the recent fall in the US dollar. The US Dollar Index as depicted by DXY has fallen ~1.2% over the past week, and it’s seen a whopping 3.4% fall over the past 30 trading days. The fall in the dollar is most likely due to the euro’s two-year high.

Precious metals often move in tandem with the US dollar, as they’re all greenback-based assets. Their demand can be negatively affected by a rising dollar and positively affected by a falling dollar.

Mining shares and ETF exposure

The revival among precious metals also led to a substantial rise in mining shares such as Royal Gold (RGLD), Goldcorp (GG), Primero Mining (PPP), and Yamana Gold (AUY). These four miners have seen trailing-five-day-trailing rises of 3.5%, 1.9%, 5.4%, and 1.6%, respectively.

Combined, these four miners make up ~16.7% of the VanEck Vectors Gold Miners ETF (GDX). GDX has risen ~0.32% over the past five days.

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