ETFS Physical Swiss Gold

On May 31, 2017, the implied volatilities of Royal Gold, Goldcorp, Agnico Eagle Mines, and Primero Mining stood at 26.5%, 30.7%, 32.1%, and 90.6%.

As precious metals have steadily fallen for the past few weeks, investors have been trying to read the increase in Treasury yields during the same period.

In the past few weeks, fluctuations in precious metals and precious metals–based funds have been influenced by changes in the US dollar.

First Majestic, New Gold, Agnico, and Silver Wheaton now have RSI scores of 60.5, 56.2, 57.6, 59.6, respectively.

Last year was a volatile year for the gold market. Softer demand from China and India, coupled with Trump’s victory, had immensely affected the precious metal.

It’s expected that precious metal mining stocks will follow precious metals. So it’s crucial to know which stocks are closely associated with precious metals.

Gold futures for April expiration fell for the second straight day on March 1, 2017, as the US dollar showed strength.

Precious metals have witnessed downward pressure over the past few months due to the expectation that US monetary policy is on a tightening path.

During November, after the presidential election, gold’s gains were mainly due to the strong US dollar. The US Dollar Index rose to a 14-year high.

It’s true that market volatility has been unusually low lately, but it’s expected to rise. There are several ways to mitigate the impact of rising volatility and historically, gold has been one of the more effective tools.

To be sure, it’s not unreasonable that gold and silver (along with platinum) are often lumped together in the precious metal basket.

After rising nearly 12% from its June lows, silver has been garnering some attention lately, leaving many investors wondering whether they should raise their allocations to the precious metal.

Let’s take a look at some of the reasons why RAAX maintains a bullish or bearish position on certain asset classes.

Central banks have been net buyers of gold (SGOL) since the beginning of the financial crisis of 2008.

Unlike other banks, BNP Paribas has a negative bias for gold going into 2019. Harry Tchilinguirian, global head of commodity markets strategy at BNP Paribas, is negative on gold (SGOL)(GLD).

The US dollar (UUP) has been on an upward trajectory in 2018 so far. Year-to-date, it’s up ~7.4% compared to other major global currencies.

The World Gold Council (or WGC) chief Market Strategist and Head of Research, John Reade, analyzed gold’s performance in 2018.

The yield curve mainly reflects bond market investors’ expectations of the Fed’s actions and future economic conditions.

According to the World Gold Council (or WGC), central banks’ gold (SGOL) buying has hit the highest level in almost three years for the quarter ended September 2018.

When the yield curve (BND) inverts, it means that the yields of shorter-duration securities become larger than those of longer-term securities.

The manufacturing sector shed 3,000 jobs during August. This is the first time in the last year that the sector has cut jobs.

According to the COT report for the week ended August 24, detailing holdings as of August 21, money managers were net short on gold for the ninth straight week.

A yield curve tracks the yields of Treasury securities maturing at different times.

While most Fed officials agreed on rates and trade concerns, there was disagreement among them regarding the significance of the yield curve.

According to a Reuters poll of 35 analysts and traders, the average gold price (GLD(IAU) forecast for 2018 and 2019 is $1,301 and $1,325 per ounce, respectively.

The US job additions in July reached only 157,000, lower than the expectations of 190,000 job additions.

It doesn’t come as a surprise that Wall Street is concerned about a potential slowdown, as the spreads have significantly narrowed between the two-year and ten-year Treasury yields.

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.

Gold remained resilient in May, as the U.S. dollar strengthened considerably. The U.S. Dollar Index (DXY)1 gained 2.4% and closed the month at its highs for the year.

Over the past three years, HL and KGC have seen falling correlations with gold.

Over the past three years, PAAS, AUY, and GOLD have seen declining correlations with gold, while FNV saw a mixed correlation to gold.

Yamana Gold has shown the highest correlation with gold this year, while Randgold has the lowest correlation on a year-to-date basis.

While volatility has returned to markets this year, it has yet to reach worrying levels that might motivate investors to hedge their exposure.

Gold’s price action in March was very constructive, even though it only advanced $6.62 (0.5%).

The correlation between gold and the dollar since the beginning of 2018 is -0.85.

In this part of our series, we’ll look at the correlation between gold and four mining stocks.

In this part of our series, we’ll look at the correlation between gold and four mining stocks: Franco-Nevada (FNV), Coeur Mining (CDE), Kinross Gold (KGC), and Eldorado Gold (EGO).

The precious metals and miners were widely expected to react negatively after the Fed decided to hike interest rates.

In this part of the series, we’ll look at the correlation between gold and four select mining stocks.

Mining stocks tend to move in accordance with gold prices.

Miners had a good start to 2018 with an upswing in prices due to the revival of precious metals.

Mining stocks’ correlation with gold is crucial, as gold is famously known as the big brother of precious metals.

Miners had a good start to 2018. They saw higher prices due to precious metals’ revival. As precious metals fell, so did the mining stocks.

Gold increased 5.3% and silver rose 5.2% in the previous one-month period.

In this part of the series, we’ll analyze the correlations of the movements of a group of mining stocks with gold.

Most mining stocks have risen during the past month due to the revival in precious metals prices.

First Majestic Silver saw correlation drop during the past three years. On a three-year basis, its correlation with gold was 0.57.

Gold is a non-yield bearing asset that reacts negatively to rises in the interest rate.

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.

Among these spreads, the gold-silver spread is the most talked about because it measures the number of silver ounces it takes to buy a single ounce of gold.

Agnico, Randgold, Yamana, and Barrick have call implied volatilities of 24.3%, 21.1%, 38.8%, and 22.8%, respectively.

Gold and the US dollar are mostly inversely related to each other.

On a year-to-date basis, AngloGold has seen the highest correlation to gold, while Cia De Minas has the lowest year-to-date correlation.

Mining stock analysis In this part of the series, we’ll take a look at First Majestic Silver’s (AG), B2Gold’s (BTG), Goldcorp’s (GG), and New Gold’s (NGD) call-implied volatility and RSI (relative strength index) scores. Volatility analysis AG, BTG, GG, and NGD have call-implied volatility of 42.9%, 54.8%, 25.7%, and 52.4%, respectively. New Gold and Goldcorp have reported trailing-30-day […]

Gold Fields, Wheaton Precious Metals, Pan American Silver, and IamGold have RSI scores of 36.7, 55.2, 41.9, and 44.4, respectively.

Investors have their eyes set on the interest rates. A rise in the interest rates causes the demand for precious metals to fall.

All four precious metals saw a down day on Monday, December 4, 2017, after the US dollar, in which the four metals are priced, rose $0.39%, propelled by the Senate passing its tax reform bill.

Precious metals have been closely associated with the movement of the US dollar over the last few months.

After a substantial slump on Monday, gold futures for December delivery rose 0.5% on Tuesday and closed at $1,281.7 per ounce.

Correlation analysis Mining stocks’ performance usually depends on precious metal prices. Correlation analysis can give investors some perspective on how mining stocks relate to precious metals, especially gold. In this part of our series, we’ll look at four miners—Royal Gold (RGLD), Goldcorp (GG), Franco-Nevada (FNV), and Randgold Resources (GOLD)—and their correlation with gold. On Monday, the ETFS Physical […]

For India, gold imports have fallen 16% in value to ~$2.9 billion in October 2017 compared to $3.5 billion in the corresponding month last year.

When you look at mining stocks’ performance, it’s important to analyze their correlation with gold. These stocks typically take their directional cues from gold, which is the most dominant among precious metals.

Geopolitical events like the tensions with North Korea helped drive the price of gold higher in September 2017.

As of October 24, 2017, Silver Wheaton (SLW), Yamana Gold (AUY), Barrick Gold (ABX), and AngloGold Ashanti (AU) had implied volatility readings of 30.8%, 48.4%, 29.1%, and 40.9%, respectively.

The gold-platinum spread was ~1.38 on October 23. The RSI (relative strength index) level for the gold-platinum spread is now at 93.9.

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.

The Physical Silver Shares (SIVR) and Physical Swiss Gold Shares (SGOL) witnessed rises on Friday, October 16, climbing 0.98% and 0.81%, respectively.

All the four precious metals saw an up day on Monday, October 9, 2017.

North Korean tensions Like the US dollar, global tensions can be responsible for precious metal price fluctuations. North Korea has interpreted US president Donald Trump’s comments as a declaration of war, stating that Pyongyang has the right to take countermeasures, including shooting down US bombers outside of its airspace. The ongoing unrest in the Korean peninsula has led to a global […]

Precious metals have been buoyed by tension in North Korea. If North Korea does another missile test, it could prompt investors to move to haven assets such as gold, silver, Treasuries, and major currencies.

Silver Wheaton has the highest correlation with gold, while Franco-Nevada has the lowest correlation.

Most of the miners have seen an upswing in their prices over the past week.

In this part of the series, we’ll look at some important technical indicators, including volatility figures and RSI levels for major miners.

Royal Gold’s correlation fell from a three-year correlation of ~0.75 and a year-to-date correlation of ~0.72 with gold.

July 20, 2017, was an up day for the euro, which put downward pressure on the US dollar as represented by the U.S. Dollar Index (or DXY).

Gold and silver-based funds such as SGOL and SIVR are impacted by changes in precious metal prices. They fell due to the fall in precious metals on Friday.

In this article, we’ll take a look at the variables that determine how attractive particular mining stocks or shares are or could become.

The gold-silver spread touched a peak of 85 in late 2008. The RSI level of the gold-silver ratio is 80.8, suggesting a possible pullback in the spread.

Though the precious metals survived the Fed’s interest rate hike, the miners took a hit. Most mining stocks saw a considerable down day on Wednesday.

On June 6, 2017, the US Dollar Index plunged to its lowest level in seven months, which helped dollar-denominated precious metals regain value.

Investors are constantly speculating about the impact on precious metals of a possible Fed rate hike in June. Let’s look at some 14-day RSI scores and implied volatility.

The ETFS Physical Swiss Gold (SGOL) and the ETFS Physical Silver (SIVR) have risen 8.5% and 4.1%, respectively, on a year-to-date basis as of May 18, 2017.

One of the critical elements that plays on precious metals besides the overall market sentiment is the US dollar.

The US Dollar Index, which prices the dollar against a basket of six major world currencies, has risen ~0.46% on a trailing-five-day basis.

Amid the significant fall in precious metals prices in the past couple of weeks, silver has taken the lead among the losers.

While the US dollar has seen a decline in 2017, the increased possibility of a Fed rate hike in June could give the currency some breathing room.

Metal investors have to study upward and downward trends as price change predictability can be affected by rises and falls in precious metal prices.

Another important phenomenon that played on the fall of precious metals on Wednesday, April 19, was the upswing of the US dollar.

As global tumult grips markets and investors turn to mining stocks as safe havens, it’s crucial to understand which stocks are closely tied to precious metals.

Since the French elections are right around the corner, investors might start parking their money in safe-haven assets like gold.

As the markets experienced unrest on Tuesday, April 11, gold touched its five-month high of $1,275.10 per ounce.

Turbulence in markets due to the viability of the Trump Administration, the upcoming French elections, and the Brexit vote caused precious metals to rise.

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

Yamana’s correlation with gold has increased from a three-year correlation of ~0.74 to a one-year correlation of ~0.80.

We’ve begun to see a positive impact on mining shares, mining shares had been facing losses after Fed’s interest rate hike.

GLD has seen a rise of 8.6% since the beginning of 2017, closely tracking the performance of gold.

Amid the recent turbulence in markets, precious metals have begun to rise, but we’ve only seen the slightest positive impact on mining shares.

The volatility index may finally stop being stagnant and move upward, now that the fiasco of the GOP’s healthcare bill attempt failed to launch on March 24.

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