17 Dec

Could Gradual Hike Result in Gradual Loss for Precious Metals?

WRITTEN BY Meera Shawn FEATURED IN Macroeconomic Analysis

“Gradual” was the keyword

The FOMC (Federal Open Market Committee) emphasized the word “gradual” in reference to the rate hike. This emphasis may have likely buoyed precious metals, as they didn’t react very much to the Fed’s decision. Investors unanimously expected a fall in value assets like gold once the rates rose above zero. However, the fall didn’t occur, and gold added $15 to its previous day close, 1.4% higher at $1,076.8 an ounce on Wednesday, December 16.

Silver was the best-performing precious metal, as it surged 3.5% and ended at $14.3 per ounce. The volume in silver futures, however, remained significantly low compared to the previous trading days. Below is a chart that shows the three-month performance for silver. With the gain in silver, the RSI (relative strength index) rose from 28 to 43. A figure below 30 indicates a possible bounce back in the asset price.

Could Gradual Hike Result in Gradual Loss for Precious Metals?

The progressive stance of the Federal Reserve may result in a more gradual reaction from the precious metals in the coming days. Platinum and palladium gained 2.4% and 0.88% and closed at $876 and $572 an ounce, respectively.

Silver miners and ETFs

The hike in silver prices boosted the silver-based ETFs like the iShares Silver Trust (SLV) and the Global X Silver Miners ETF (SIL). These two indicators rose 2.9% and 3.7%, respectively, on Wednesday. Silver mining businesses like Silver Wheaton (SLW), Pan American Silver (PAAS), and Coeur Mining (CDE) all gained on the rise in silver prices. These three companies rose 2.5%, 6.4%, and 7%, respectively. Together these companies make up about 7% of the price fluctuations in the VanEck Vectors Gold Miners ETF (GDX).

Latest articles

Yesterday, Apple (AAPL) launched a newly upgraded range of its iPad Air and iPad mini devices ahead of its March 25 special event.

19 Mar

Nike Gears Up to Deliver Its Q3 2019 Results

WRITTEN BY Sharon Bailey

Nike (NKE) is scheduled to report its earnings results for the third quarter of fiscal 2019 after the market closes on March 21.

On March 18, Chesapeake Energy’s (CHK) implied volatility was 51.9%, which is ~14.7% less than its 15-day average.

19 Mar

Sprint’s Revenue and Earnings Growth

WRITTEN BY Andrew Smith

Sprint (S) reported an adjusted EPS of $0.06 in the first nine months of fiscal 2018—compared to $0.08 during the same period in fiscal 2017.

19 Mar

Oil Bulls: US Oil Exports Tend to Fall More

WRITTEN BY Robert Scott

On March 18, Brent crude oil May futures settled ~$8.2 higher than the WTI crude oil May futures. On March 11, the spread was ~$9.5.

Out of the 34 analysts covering Broadcom (AVGO), 25 analysts rated the stock a “buy,” while nine analysts rated the stock a “hold."