|Bid||82.39 x 300|
|Ask||82.49 x 600|
|Day's Range||81.78 - 82.73|
|52 Week Range||79.17 - 108.29|
|PE Ratio (TTM)||28.24|
|Forward Dividend & Yield||2.00 (2.40%)|
|1y Target Est||N/A|
Are Upcoming Interest Rate Hikes Already Priced into Gold? Mining stocks are known to have a strong correlation with gold, as gold is the most crucial of all the four precious metals. For our correlation analysis, we’ll look at Randgold Resources (GOLD), Yamana Gold (AUY), Coeur Mining (CDE), and Barrick Gold (ABX). Mining-based funds also have a high correlation with precious metals.
Congo is set to ratify a new mining code over the objections of big resource companies, allowing the country to make more money from its natural riches but also potentially making smartphones and electric ...
As the new chairman of the Federal Reserve, Jerome Powell’s recent testimony also showed the Fed’s positivity about the economy’s outlook. The US dollar declined after President Donald Trump indicated that he wanted tariffs on imported steel and aluminum products. The US Dollar Index averaged 96.6 in 2017.
Mining stocks tend to take their cues from gold price movement. Mining-based funds have a high correlation with precious metals. The VanEck Vectors Gold Miners ETF (GDX) and the Sprott Gold Miners (SGDM) rose 1.1% and 0.52%, respectively, on Friday, February 23.
What Caused the Slump in Precious Metals and Miners? Another element besides the fluctuations of the US dollar that could have led to the fall in precious metals is the US interest rate. The Fed has kept investors on their toes with the rise in interest rates playing on the equity market slump.
The data provided a boost to inflation expectations and consequently to rate hike expectations. Higher interest rates in the United States make the country an attractive destination to park funds from overseas, increasing the US dollar’s value relative to other currencies. The latest boost to the dollar came after President Trump’s comments that the dollar would strengthen on the back of a growing US economy.
Precious metals including gold, silver, and platinum witnessed an up-day in their spot markets on Monday. Gold (GLD) was up 0.5% and closed at $1,339.6 per ounce. Palladium is regarded as an industrial asset, so the overall market slump likely took it lower.
Stocks tumbled on Monday, with benchmarks surrendering gains made in the new year. Arconic fell on a weak outlook, and Randgold reported disappointing profit.
A correlation study of miners to gold is important since gold is the most crucial of all the four precious metals, and its price could be a determinant of other metals as well as mining stocks. In this part, we’ll be looking at B2Gold (BTG), Royal Gold (RGLD). Mining-based funds are also known to have a high correlation with precious metals.
“Crypto-mania” and a stock market that goes nowhere but up indicates that a crisis is the last thing on investors’ minds. The economy is at full employment and the personal savings rate has declined from 6% in 2015 to 2.9% in November. There comes a point when investors are all-in, and something happens that triggers a selloff – a geopolitical event, an economic downturn, or a black swan emerges.
Could Gold Be Set for a Big Move in 2018? After declining by ~10% in 2017, the US dollar (UUP) has extended its fall in 2018. At the World Economic Forum in Davos, US Treasury secretary Steven Mnuchin stated that the United States welcomes a weaker dollar, as it could benefit the country.
What Led to the Fall in Gold and Silver? Mining stocks tend to take their cues from gold. The past week has been beneficial for mining funds like the Global X Silver Miners (SIL) and the iShares MSCI Global Gold Min (RING).