Besides the impact of interest rates, there are also other global indicators that could play on precious metals—the most important being the US dollar. The US dollar index, or the DXY Currency Index, which tracks the US currency against a basket of six major rivals, fell a whopping 0.7% on Tuesday.
The markets are also concerned about Theresa May’s ability to stay on as British prime minister. Plus, US tax reform may significantly impact precious metals.
According to Commodity Futures Trading Commission data, hedge funds and money managers raised their net long positions in COMEX gold by 7,027 contracts to 173,562 contracts. This change marked the first time speculators raised their net long position over the past eight weeks.
Mining stocks saw a mixed reaction on Tuesday. Among the top gainers were Aurico Gold (AUQ), Randgold Resources (GOLD), Franco-Nevada (FNV), and Newmont Mining (NEM), which rose 3.6%, 1.7%, 1.5%, and 1.6%, respectively.