AuRico Gold Inc

Refinancing deals allow issuers or corporations to raise additional funds to meet maturing debt obligations or to replace existing high-cost debt with a new low-cost debt.

Besides ongoing geopolitical concerns, a crucial factor that gold keeps looking to for directional moves is the US dollar.

There has been a significant up-and-down movement in the precious metals since the beginning of 2018.

Although most of the upswing in precious metals has been due to the rise in geopolitical risks in 2017, the dollar has been the most crucial factor.

All four precious metals except palladium witnessed an up day on December 18, 2017. Platinum touched the day’s high of $915.3 and ended up at $913.2 per ounce.

Precious metals rebounded after the Fed increased the interest rate on December 13.

Precious metals and miners saw some relief on December 13 after the Fed raised rates as expected. Sibanye Gold (SBGL), Aurico Gold (AUQ), and Goldcorp (GG) rose 3.5%, 3.6%, and 5.8%, respectively.

Often, gold, silver, platinum, and palladium react to the overall risk in the market.

All the four precious metals rose on Monday, November 27. Gold futures for December expiration were up 0.55% to close at $1,294.4 an ounce.

The US stock markets were closed on Thursday, November 23, 2017, for Thanksgiving, and the next day (Black Friday) was quite slow for precious metals. Gold played in a narrow range that day.

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.

All four precious metals rose on Monday, October 30, as multiple speculations in the market gripped investors’ attention.

A crucial factor that could potentially move precious metals is the decision about the next chair of the Federal Reserve.

Gold, silver, platinum, and palladium have a five-day trailing loss of 0.67%, 0.44%, 1.1%, and 1.5%, respectively.

Gold fell for the third consecutive day on October 18, 2017, as the US dollar regained strength. However, October 19 was an up day for gold and silver.

Gold prices slipped for yet another day on Monday, October 2, 2017, as gold saw its lowest close in the last two months.

Gold prices were around their highest level in nearly seven weeks on Monday, July 31.

Precious metals saw an up-day on July 20, 2017, after Mario Draghi said that policymakers would discuss potential changes in the bond-buying program in autumn.

Precious metals increased as gold futures for July expiration rose 0.78% and closed at $1,273.6 per ounce. Platinum and palladium were in line with gold.

Gold futures for June expiration fell 0.47% and ended May 18 at $1,252.8 per ounce. The call implied volatility in gold rose to 11.3%.

The gold-platinum spread was ~1.3 on April 26, 2017. The gold-platinum spread RSI on that day was 59.

When analyzing the precious metals market, it’s important to take a look at the relationship between gold and silver.

When analyzing the precious metals market, it’s important to take a look at the relationship between gold (IAU) and silver (SLV).

The gold-silver spread was trading at 68.5 on February 23, 2017. The spread suggests that it took 68.5 ounces of silver to buy a single ounce of gold.

Gold enthusiasts seem to be in a fix, as any further movements in the precious metal are currently unclear. The world famous SPDR Gold Shares ETF has risen ~11% in 2017 so far.

Fluctuations in precious metals over the past month have been strongly determined by the FOMC’s decision to increase the interest rate.

The fall in the price of gold on Monday, December 5, 2016, was partly determined by changes in the US dollar.

Gold has fallen more than $120 from its peak on November 9, 2016, following the US elections. The fall suggests optimism for a potential interest rate hike.

The volatilities of gold, silver, platinum, and palladium were 20.2%, 30.4%, 19.5%, and 48.4%, respectively, on November 14, 2016.

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.

Gold fell for the sixth straight day on October 7, 2016. It fell 0.07% and closed at $1,251.9 per ounce. Last week was choppy for precious metals.

Deutsche Bank’s price slumped to a record low after Bloomberg reported that trading clients had withdrawn their excess cash and positions from the lender.

Gold gave steady returns to investors for the first two months of 2016 as unrest and instability continued in the markets. However, March started with some ups as well as downs for gold.

Gold futures for April delivery rose by approximately 1.4% on Tuesday, January 26, 2016.

Oil futures rose 9% on Friday, January 22, 216. Oil had plummeted to its 12-year low during the previous week. Risk aversion among investors rightly triggered the haven appeal, which led to a rise in the price of gold.

The instability in precious metals has been a victim of the rattled global markets. Gold and silver generally rise on days when stocks fall, and they pulled back on days when equities rebounded.

Palladium takes the title for worst-performing precious metal in 2015.

The fall in the price of gold on Wednesday, December 30, 2015, may most likely be due to weaker oil prices. This weakness extends to the gold markets as well.

A tightening move by the US comes as the rest of world loosens to improve economic activity. For example, the ECB recently eased its rates to pump up the economy.

Janet Yellen suggested that the US economy is on track for recovery since the financial crisis of 2008 and that inflation expectations also looked firmer.

The Fed rate hike has been a major driver for gold prices since mid-2015. Higher interest rates usually diminish gold’s appeal due to its non–interest yielding nature.

Platinum closed 0.67% lower on November 24, the only precious metal ending the day on a down note. Platinum settled at $841.70 an ounce, its lowest closing in almost ten years.

With the great downfall seen in the prices of precious metals, investors now seem set to cut down their long positions, especially on gold.

Gold has been following an ongoing losing streak for the past four days. Gold fell lower on Tuesday, November 3, 2015. It gave up 1.9% of its price.

Gold demand in China saw a rise in 3Q15. However, the demand was small enough that its position as the leader in demand for gold was overtaken by India.

Gold futures for December delivery trading on COMEX rose on Wednesday. They touched a high of $1,183.10 per ounce. It’s the highest level in about a week.

Many intermediate and senior gold producers have declining production profiles. Mergers and acquisitions are thus expected to pick up in the coming months and quarters.

The Alamos-AuRico merger rationale is to create a significant mid-tier producer that can withstand the ongoing low gold prices. Cost synergies will help lower costs.

Eldorado Gold (EGO) is based in Vancouver. It had to temporarily stop its mining activities at Skouries and part of its operations in Olympiada, Greece.

According to the World Gold Council, 2Q15’s gold demand plummeted by 12% since 2Q14. The demand stands at 914.9 tons for 2Q15, a six-year low, as demand in 2Q14 stood at 1,038 tons.

Gold prices have an inverse relationship with real interest rates. As a result, decreasing real interest rates are positive for gold prices and gold-backed ETFs.

Dollar-denominated assets, including gold, are influenced by the dollar’s strength. A strong US dollar is negative for gold and vice versa.

In the week ending June 26, the US Dollar Index rose by 0.8%. A strong US dollar is negative for gold and vice versa.

Up until March the year, the US dollar had gained close to 26% since its bull run started in July 2014. On March 13, it reached a peak of 100.3.

A stronger US dollar makes dollar-denominated gold more expensive for holders of other currencies. It also diminishes gold’s appeal as a hedge.

The three-month US real interest rates have been increasing in recent months. The rates hit an eight-week high of 2.25% on May 6.

Lower inflation expectation is negative for gold since it’s considered an inflation hedge. But inflation below the Fed’s expectation could be positive for gold.

The Fed is closely watching jobless claims data. Any weakness in the labor market may defer the Fed rate hike. This positively impacts gold-backed ETFs.