What Direction Are Precious Metals and Miners Taking?



Fluctuations in precious metals

Gold retreated on July 19, 2017, but it ended the day almost flat at $1,242 per ounce. Silver was on a recovery path on July 19, but it rose just 0.18% to end the day at $16.3 per ounce. 

Platinum and palladium showed downward price trends on the day, falling 0.68% and 0.61%, respectively. Platinum closed the day at $921.6, and palladium closed the day at $864.4.

Precious metals were on the path to recovery last week, mainly due to the fall witnessed by the US dollar. The U.S. Dollar Index (or DXY), which prices the US dollar against six major world currencies, fell ~1% in the week. Most of the time, a fall in the dollar proves beneficial for precious metals.

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Dollar gains

The US dollar was almost 0.3% higher than the euro on July 19. As precious metals are dollar-denominated assets, they often suffer from rises in the dollar, and they prosper when the dollar falls.

The above chart depicts the inverse relationship between the two assets. There is the chance that the dollar and precious metals will move together during times of market uncertainty, when they both act as haven assets.

Mixed reaction

Most mining shares saw rises on July 19 despite precious metals’ mixed performances. Last week brought recovery for most precious metals miners. Companies such as Aurico Gold (AUQ), Gold Fields (GFI), Newmont Mining (NEM), and Franco-Nevada (FNV) were among the gainers on July 19. They rose 3.6%, 0.79%, 0.5%, and 1%, respectively.

The iShares Gold Trust ETF (IAU) and the iShares Silver Trust ETF (SLV) have risen 1.7% and 2.3%, respectively, on a trailing-five-day basis.


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