Meera Shawn

Many of the recent changes in precious metals have been determined by changes in the interest rates offered on US Treasuries.

It’s important to monitor the implied volatilities of large mining stocks as well as their RSI levels, particularly after changes in precious metal prices.

It’s important to monitor the implied volatilities and RSI levels of large mining stocks, particularly in the wake of the changes in precious metal prices.

The reason behind the fall of the dollar on Friday, January 27, 2017, was lower-than-expected GDP numbers. The DXY ended the day 0.10% higher.

The trailing 30-day returns of most mining companies are positive due to precious metals’ diminishing safe-haven appeal.

Precious metal mining stocks are known to closely track the performance of their respective precious metals. Mining stocks often show more volatility than metals.

Precious metal prices have been falling since Trump won the US Presidential election on November 8, 2016. Mining stocks quickly followed suit.

Sibanye Gold, Gold Fields, Agnico-Eagle Mines, and Pan American Silver had RSI levels of 51.4, 54.6, 59.4, and 58.8, respectively.

The gold-platinum spread was ~1.2 on January 11, 2017. Platinum’s RSI (relative strength index) was 38.

The gold-platinum spread was approximately 1.6 on January 11, 2017. Its RSI (relative strength index) was as low as 40.

In this part, we’ll look at the implied volatilities of large mining stocks and their RSI levels in the wake of precious metal prices.

Mining companies that have high correlations with gold include Agnico Eagle Mines (AEM), Alacer Gold (ASR), Alamos Gold (AGI), and AngloGold Ashanti (AU).

Precious-metal-based funds such as the ProShares Ultra Silver (AGQ) and the Direxion Daily Gold Miners (NUGT) have seen a revival in their price during the last month.

Among the other precious metals trading on the COMEX, silver shares for March expiration maintained an almost flat end to the day on January 11, 2017.

Large speculators and traders continued to reduce their bullish net positions in gold futures markets last week for the eighth consecutive week.

Mining companies that have high correlations to gold include Royal Gold (RGLD), Goldcorp (GG), New Gold (NGD), and Newmont Mining (NEM).

Precious metals had a great start to 2016. Franco-Nevada’s correlation rose from an ~0.59 three-year correlation to an ~0.63 one-year correlation.

The correlation between gold and the US Dollar Index is -0.36. It means that about 36.0% of the time, gold and the dollar move in opposite directions.

Gold prices for February expiration fell on the last trading day of the year. Gold fell 0.53% and closed at $1,152 per ounce on December 30, 2016.

Mining companies that have high correlations with gold include Buenaventura (BVN), AngloGold Ashanti (AU), Hecla Mining (HL), and Kinross Gold (KGC).

Precious metals had a great start to 2016, but they’ve been falling since Donald Trump won the US presidential election. As a result, mining stocks have also been falling.

The substantial returns of most mining companies have been due to safe-haven bids that boosted gold and other precious metals.

Mining stocks and gold Although precious metals were doing well at the beginning of 2016, it’s important to know which mining stocks overperformed and underperformed precious metals. Precious metal prices have been falling since Donald Trump won the US presidential election on November 8, 2016. As a result, mining stocks have also been falling. Mining […]

Mining companies that have high correlations with gold include Cia de Minas Buenaventura (BVN), AngloGold Ashanti (AU), Hecla Mining (HL), and Kinross Gold (KGC).

Gold and silver have been strong for the past few days. However, silver has substantially outperformed gold year-to-date.

Silver-based mining funds like the Global X Silver Miners Fund (SIL) have been negatively impacted by the drop in silver prices.

Palladium has seen a YTD rise of a whopping 32.5%, which is higher than the rise in platinum, silver, and gold. Earlier, palladium was underperforming its precious metal peers.

Mining companies that have high correlations with gold include Sibanye Gold (SBGL), Gold Fields (GFI), Silver Wheaton (SLW), and Franco-Nevada (FNV).

Palladium has seen a year-to-date rise of a whopping 32.5%, which is higher than the rise in platinum, silver, and gold. Earlier, palladium was underperforming its precious metal peers.

Mining companies that have high correlations with gold include Alamos Gold (AGI), First Majestic Silver (AG), B2Gold (BTG), and Royal Gold (RGLD).

Palladium has seen a year-to-date rise of 24.9%, which is higher than the increase in platinum, silver, and gold.

Many of the fluctuations in precious metals have been a result of speculation about the Federal Reserve’s interest rate stance.

Donald Trump’s recent victory is shining a light on the possibility of a rise in inflation and how such a rise could work for gold.

The gold-palladium spread has seen its ups and downs over the past few months. But the United Kingdom’s Brexit vote resulted in some strength for palladium.

Many of the fluctuations in precious metals have been determined by the Federal Reserve’s interest rate stance. These variations play on precious metals funds.

The difference between yields on ten-year US notes and similar-maturity TIPS, a gauge of price expectations, expanded to as much as 1.7% last Tuesday.

Last week was rough for precious metals. Gold, silver, platinum, and palladium all fell. Gold had the biggest weekly fall in about three years.

Gold broke its key level of $1,300 per ounce on Tuesday, October 4, 2016. But investors are seeing gold’s 200-day moving average of $1,258 per ounce as a resistance level.

The current weakness in the rand made it fall to all-time lows against the US dollar in early 2016 but has helped mining companies.

The precious metals price correction that happened on September 2, 2016, extended to September 6. How did equities and funds respond?

Since 2013, Germany has resorted to the gold repatriation plan, which aims to transfer ~673 metric tons from foreign storage back to Germany by 2020.

Canada is the only G7 nation that does not hold at least 100 tons of gold in its reserves. Its holdings rank it last of 100 central banks—behind Albania.

In January 2016, Russia’s central bank bought almost 22 tons of gold worth ~$800 million—the eleventh month in a row that it bought large gold volumes.

The US dollar rebounded on Tuesday, August 2, after losing on Friday due to weak US economic data. The US dollar rose by 0.15% against world currencies.

Gold and silver have a strong correlation close to 75%. This suggests that about 75% of the time, a fall in gold prices leads to a fall in silver prices.

The falling equity market took down the Japanese stock markets too.

Friday was important. Gold rose to a two-year high due to additional haven bids on the Brexit referendum.

Brexit could send jitters around the globe, and investors may jump to safe-haven assets such as gold and silver, which have risen 21.2% and 25.6%, respectively, on a YTD (year-to-date) basis.

Hedge funds increased their bets on gold as prices fell after gold’s gains in 1Q16. However, hedge funds and money managers curbed their bets on gold as it fell steadily in May.

Negative interest rates around the globe, along with overall economic concerns, are adding to the unrest in the Market.