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.
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.
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.
In this article, we'll concentrate on the correlation trends of Sibanye Gold, Agnico Eagle Mines, Primero Mining, and Silver Wheaton with gold over the past three years.
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The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
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As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.