Shaky Precious Metals and Revival: Comparing March 1 and 2

Decline and rebound

All four precious metals were on the path to revival on Friday, March 2, 2018, after a shaky day on Thursday, March 1, 2018. On Thursday, there were massive downward corrections in the prices of all four precious metals. Gold fell 0.96% and ended the day at $1,302 per ounce. On Friday, gold rose 1.4% and peaked at $1,323.20 per ounce. The RSI (relative strength index) level for gold stayed at 48, and its volatility was close to 10.3%.

Silver fell 0.76% on Thursday and rebounded 1.2% on Friday. It touched a high of $16.50 and ended the day at $16.40 on Friday. The RSI level for silver was 45, and its volatility was 17.5%.

Shaky Precious Metals and Revival: Comparing March 1 and 2

Interest rates and the US dollar

Platinum fell 3.1% on March 1 and rose 0.76% on March 2, ending the day at $963.60 per ounce. Palladium was the biggest loser among the four precious metals, falling 6.1% on Thursday and reviving 1.3% on Friday. It ended the day at $995.50.

Looking at this information and the above graph, we can see that the losses in gold and silver on March 1 converted to gains on March 2. They rose more than they fell. Precious metals negatively reacted to Federal Reserve chair Jerome Powell’s comments about increasing the interest rate, which sent the US dollar to nearly a six-week high.

The negative sentiment in precious metals on Thursday caused a slump in the price of gold and in silver funds, including the iShares Gold Trust (IAU) and the iShares Silver Trust (SLV). However, they rebounded on Friday 0.48% and 0.13%, respectively.

Most mining shares rose on Thursday, despite the fall in metals. There were mixed reactions on Friday. Newmont Mining (NEM) and Goldcorp (GG) fell 0.47% and 0.8%, respectively. AuRico Gold (AUQ) and First Majestic Silver (AG) rose 3.6% and 0.54%, respectively.