Economic data

In addition to the remarks by the Federal Reserve chair, Janet Yellen, important economic data that came out on Thursday, July 13, also significantly affected precious metals. The Purchaser Price Index (or PPI), which measures the change in the price of finished goods and services sold by producers, stood at 0.1%. It was higher than the forecast 0.0%.

The higher figure is good for the US dollar. The better the outlook for the US dollar, the lower would be the demand for dollar-based assets such as gold and silver.

How Did the Latest Economic Numbers Affect Gold?

Unemployment claims came in at 247,000, slightly higher than the forecast 245,000. Higher unemployment claims are negative for the dollar and can also dull the country’s economic outlook.

Volatility and gold

The chart above shows how the overall market environment affects precious metals. The chart compares the Volatility Index (or VIX) (VIXY) (VXZ) to gold (GLD). Volatility and gold are known to move together during turbulent times, such as the economic unrest that occurred at the end of 2015.

The Volatility Index didn’t move much, as there were no market-moving comments from Yellen in the second round of congressional testimony.

The mining-based funds that dropped on July 13 included the Global X Silver Miners ETF (SIL) and the VanEck Vectors Junior Gold Miners ETF (GDXJ). These ETFs fell 1.4% and 1.3%, respectively.

Major mining stocks Goldcorp (GG), Royal Gold (RGLD), Randgold Resources (GOLD), and Kinross Gold (KGC) fell 0.77%, 1.0%, 1.1%, and 2.3%, respectively, on July 13.

Latest articles

Tech and semiconductor stocks have significant exposure to China during this trade war. Investors should expect these stocks to trade lower on Monday.

Apple (AAPL) investors have had a roller coaster week. Apple stock has lost just under 2% in a week, ending on August 23, 2019.

Competition taking a toll on Netflix as its share of US subscription video streaming market keep falling as rivals gain ground.

Crude oil production continues to rise, and oil prices remain at $50. Despite that, US energy stocks aren’t getting investors’ interest.

Apple stock fell 4.6% as the US-China trade war intensified today. China warned of tariffs on more US goods, followed by Trump's tweeted response.

You’ve likely heard about it in the financial press recently: this ominous, notorious thing called the "yield curve inversion."