On May 23, the Fed’s May meeting minutes gave some support to gold prices as the ten-year Treasury note (IEF) yield dropped almost 5.1 basis points to 3.0%.
Bitcoin (ARKW) has seen its price plunge since the start of 2018 due to news that world leaders are planning to implement regulations on digital currencies.
The Fed has long been expecting inflation to pick up. Its targeted 2% inflation rate has been eluding it for more than five years, but the latest US jobs report indicates that inflation could finally get a boost.
The optimistic economic numbers not only led to a slump in the equities on Friday and Monday, but they also helped gold recover from the low it touched on Friday.
Many analysts assume that the rise in gold’s price last week may have been supported by the tailwinds that caused the cryptocurrency market (ARKW) to slump, with Bitcoin correcting almost 30%.
Most of the mining companies have risen during the past few weeks. The miners tend to move according to precious metal prices rather than the equities market in general.
New Gold, Agnico-Eagle Mines, Franco-Nevada, and Cia de Minas Buenaventura have call-implied volatilities of 45.2%, 24.4%, 21.7%, and 31.2%, respectively.
Palladium has been the winner among the four precious metals, having skyrocketed a whopping 57% on a YTD (year-to-date) basis in 2017 as of December 27.
In this article, we’ll discuss the gold-silver, gold-platinum, and gold-palladium spreads. These three spreads stand at 77.9, 1.38, and 1.23, respectively.
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.
Although the US dollar has been the most important element contributing to changes in precious metals, the upcoming December meeting of the Federal Reserve has taken all of investors’ attention.
RGLD, NEM, GFI, and BVN have call implied volatilities of 24.8%, 25.9%, 40.4%, and 35.3%, respectively. The volatility in these stocks is often much higher than the volatility in precious metals.
Kinross Gold’s correlation has risen from a three-year correlation of 0.69 to a one-year correlation of 0.77, which suggests that Kinross has moved in the same direction as gold 77% of the time.
On October 5, Gold Fields, Agnico-Eagle, Cia De Minas Buenaventura, and AngloGold had implied volatility readings of 40.4%, 33.6%, 35.3%, and 40.9%, respectively.
The US dollar and global tensions have been crucial in determining the prices of precious metals and mining shares. On Monday, October 2, mining shares saw mixed movement against precious metals.
Correlation trends On September 26, precious metals and mining stocks fell. Analyzing mining stocks’ correlation with gold is important since it can give some idea of future stock movement. In our analysis, we’ll focus on Buenaventura (BVN), AngloGold Ashanti (AU), Hecla Mining (HL), and Kinross Gold (KGC). Mining funds track precious metals and their price movements. Whereas the Global […]
Miners’ technicals Price variations in precious metals are often closely tracked by mining stocks. Before investors opt for mining stocks, there are a few technical indicators they should evaluate. In this article, we’ll look at volatility figures and RSI (relative strength index) scores for major miners Buenaventura (BVN), Hecla Mining (HL), IAMGOLD (IAG), and Harmony Gold (HMY). […]
Most precious metal miners have seen an upswing in prices over the past few weeks. The rises and falls in precious metals are often reflected in mining stocks.
Gold prices dropped from its seven-week high level of $1,276.10 per ounce on August 1. Gold futures for September expiration fell 0.08% on August 2 and ended at $1,274.20 per ounce.
In this article, we’ll look at some important technical indicators for Coeur Mining (CDE), Barrick Gold (ABX), Buenaventura (BVN), and AngloGold Ashanti (AU).
On July 13, 2017, Franco Nevada, Randgold Resources, Yamana Gold, and Cia De Minas had implied volatilities of 28%, 28.4%, 55.4%, and 38.6%, respectively.
The rises and falls of precious metals often result in amplified reactions in mining stocks. Often, a rise in gold leads to rises in gold-mining stocks, and vice versa.
On February 28, 2017, the volatilities of Randgold Resources, Buenaventura, AngloGold Ashanti, and Harmony Gold were 33.9%, 46.6%, 44.3%, and 64.5%, respectively.
It’s important to monitor the implied volatilities of large mining stocks as well as their RSI levels, particularly in the wake of changing precious metal prices.
Silver prices have rebounded from the low levels we saw at the end of December 2016. In fact, all four precious metals have seen surging prices in 2017.
Kinross is the most correlated with gold on a YTD basis among our four stocks. Buenaventura is the least correlated with gold, mainly due to its YTD losses.
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.
Precious metals were doing well at the beginning of 2016. It’s important to know which mining stocks overperformed and which underperformed precious metals.
Gold was trading slightly lower on December 23, 2016, before the markets started off their Christmas holidays. Gold’s fall was the result of a retreat of the US dollar from its 14-year high.
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).
Precious metals were doing well at the beginning of 2016. It’s important to know which mining stocks overperformed and which underperformed precious metals.
Kinross and Hecla saw their correlations with gold rise. Kinross’s correlation rose from an ~0.55 three-year correlation to an ~0.61 one-year correlation.
Mining companies that have high correlations with gold include Cia De Minas Buenaventura (BVN), AngloGold Ashanti (AU), Hecla Mining (HL), and Kinross Gold (KGC).
Call implied volatility takes into account the changes in an asset’s price due to variations in the price of its call option. In economic turbulence, volatility is higher.
The United Kingdom’s Brexit vote in June 2016 had a significant impact on mining companies and precious metals. Gold and silver rose to two-year highs due to safe-haven bids.
The gold-platinum spread has seen its ups and downs over the past few months. But the United Kingdom’s Brexit vote resulted in some strength for platinum.
China introduced its independent Chinese-denominated yuan, which found a place in the IMF basket of currencies. Recently, China has also marketed its yuan gold price to foreign exchanges.
