Merk Gold ETF

Oil prices and many other commodities surged for most of last year.

Gold and gold miners have recovered in October after consolidating in September. However, gold and gold miners have declined year-to-date.

Most gold companies have ample flexibility to weather a slump in gold prices. Debt has been reduced to levels that are manageable at lower gold prices and many companies have no net debt.

The Vanguard Group announced that its $2.3 billion Precious Metals and Mining Fund will change focus in late September to a more diversified mandate that features telecommunications, utilities, materials, and natural resources.

The gold price in U.S. dollar terms has not responded to the Turkish crisis because, at this time, it poses virtually no immediate threat to either the U.S. economy or global financial system.

The robust U.S. dollar has weighed on gold since May, and in August the U.S. Dollar Index (DXY)1 again reached new yearly highs.

Without a second half catalyst, gold will probably drift sideways, falling below the lower trend line and further eroding confidence in the metal.

he second half of 2018 should be very interesting for the gold market. The chart shows the gold price has formed a wedge or pennant pattern that has been in place for several years.

With global rates normalizing, geopolitics still posing major risks, and with one of the longest bull runs in U.S. stocks apparently stalling, 2018 might be a year of paradigm shift.

Most precious metal mining stocks have fallen over the last few months due to falling gold prices.

Precious metals prices shot up on January 19, 2018, with concerns looming over the shutdown the of the US government.

The US dollar rose 0.18% on Tuesday, January 9, 2018, which led to the lower price of spot gold (GLD) and silver.

The US dollar rose 0.32% on January 3, which led to a lower price for spot gold and silver. During the last month, the US dollar (UUP) has fallen 0.78%, and gold has risen 2.9%.

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.

The PowerShares DB Gold Fund (DGL) and the VanEck Merk Gold Trust (OUNZ) rose 2.2% over the five trading days leading up to December 27, 2017.

Alamos Gold, Sibanye Gold, Agnico Eagle Mines, and Pan American Silver have call-implied volatilities of 43.2%, 50.5%, 22.1%, and 27.5%, respectively.

In this article, we’ll take a look at the call-implied volatilities and RSI scores of Barrick Gold, Kinross Gold, Eldorado Gold, and IAMGOLD.

Speculative positions fell sharply last week. It was the most significant one-week fall since May 2016.

Correlation analysis A correlation study of mining stocks to precious metals is important. It gives insights about miners’ potential price movement. Although the mining shares are essentially part of the market’s equity segment, they’re more coordinated with metals’ movement. Gold is the most dominant precious metals. We’ll discuss how Yamana Gold (AUY), Pan American Silver (PAAS), Coeur […]

The possible interest rate hike is taking a lot of market participants’ attention. Many policymakers are also focusing on inflation numbers.

As of November 16, 2017, Alamos Gold, First Majestic Silver, Sibanye Gold, and AngloGold Ashanti had call-implied volatilities of 46.9%, 54.6%, 63%, and 40.9%, respectively.

New Gold and Goldcorp have seen upward trends in their correlations with gold, while Newmont Mining has seen its correlation decline.

If we look beyond the dollar influence on precious metals, we can analyze how the probability of an interest rate hike could influence precious metals and their miners.

As of November 2, 2017, AGI, GFI, IAG, and HMY had call-implied volatilities of 46.9%, 40.4%, 44.3%, and 53.3%, respectively.

On October 30, 2017, ABX, AU, KGC, and IAG had call implied volatilities of 29.1%, 40.9%, 41.6%, and 44.3%, respectively.

On October 26, 2017, Royal Gold, Newmont, Sibanye, and Yamana had call implied volatilities of 24.8%, 25.9%, 63%, and 48.4%, respectively.

Investor complacency doesn’t hide the fact that there are financial risks to QT. Forty percent of the Fed’s balance sheet unwind is in mortgage-backed securities at the same time that the housing market is showing signs of slowing.

Since the financial crisis, the stock market has risen consistently as long as the Fed continued to buy treasuries and mortgage-backed securities through its quantitative easing policies (QE 1-3).

A record number of junior companies attended the Precious Metals Summit. We are finding companies with attractive development projects in North America and West Africa as well as some exciting discoveries that merit watching.

Gold stock indices also traded near their highs for the year, but then followed the gold price lower. During September the NYSE Arca Gold Miners Index (GDMNTR) retreated 6.5%.

The momentum gold experienced in August carried over into early September. Geopolitical tension continued as South Korea reacted to possible preparation by North Korea for an intercontinental ballistic missile launch.

When investors look at mining stocks, it’s important that they do a technical analysis of the stocks.

When investors consider parking money in the mining sector, there are a few crucial indicators that they should watch.

Understanding mining stocks’ correlation with gold is crucial for investors in precious metal mining stocks.

The PowerShares DB Gold Fund (DGL) and the Vaneck Merk Gold Trust (OUNZ) have risen 12.1% and 12.95, respectively, year-to-date, taking strong cues from gold.

Bitcoins can be sent across borders. Bitcoin payment will be the same as paying someone in the same country. People don’t use gold much anymore.

A distributed ledger is a database of transactions held and updated in decentralized form across different locations.

Bitcoin is a global digital payment system that offers lower transaction fees than other online payment systems. It’s operated by a decentralized authority.

Gold prices tend to rise in the fourth quarter of the calendar year. Gold prices have gained an unannualized ~3.8% in the fourth quarter.

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

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.

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.

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

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.

One of the dominant financial trends of the past decade has been a move by investors out of actively managed funds and into passively managed index funds or exchange traded funds (ETFs).

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.

Gold is valued in dollars. As a result, the stronger dollar, driven by the recovery of the US economy, is pushing the gold prices further down.

The Fed’s Shifting Stance on Rates The summer doldrums came late this year for gold and gold stocks. Now that the U.K. Brexit decision is old news, the markets are again obsessed with the Federal Reserve’s (the “Fed”) shifting stance on rate decisions. Although the Fed’s tone had been dovish on rate increases following the […]

Demand from India Could Lend Support In the near term, India could lend support to the gold market. Indian gold demand has been very weak this year due mainly to the higher gold price. This suggests there is pent-up demand. A good monsoon season in India can lead to a bountiful fall harvest that typically […]

Yellen Channels Doobie Brothers’ “What Were Once Vices Are Now Habits” Another aspect of Janet Yellen’s Jackson Hole speech furthered our conviction for strong gold prices in the long term. She described all of the unconventional monetary policies implemented since the financial crisis (e.g., zero rates, QE, etc.) as components of the Fed’s “toolkit”. Perhaps […]

The Fed has probably never tightened rates in past cycles with indicators so weak. In fact, at this point in the business cycle, a more normal stance would be to hold steady, looking ahead to a time when it might cut rates. Because of this, we believe any decision to raise rates in 2016 will […]

This year, gold prices had risen by 24% as of September 19. Gold prices fell in August due to the Fed’s hawkish stance.

Perhaps one of the biggest tailwinds recently, particularly for local currency strategies, has been the stabilization and rebound in commodity prices this year.

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.

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

Central banks around the world are affecting the movement of gold with their monetary policies.

As the dollar strengthens, dollar-denominated assets usually suffer. Foreign investors have to buy a rather expensive dollar to invest in these metals.