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Gold Is Buoyant despite Falling Equity Markets (Continued from Prior Part) Gold rose significantly from the low in July
Gold rose on Friday, August 21 by 0.50% and touched the high of $1,167.90 per ounce. It’s almost a 7% rise from the five-year low of $1,073 per ounce that it touched in the July rout. The falling Asian markets, followed by the US markets, pushed investors away from the risky assets. It lured them into investing in a store of value assets. Gold’s safe-haven spirit seemed to be on a high.
Also, the unsure Fed moves from the Thursday meeting caused a loss of returns on dollar investments. The weakening dollar acts as a support for gold prices. We can see the performance of gold along with dollar in the above chart.
Other precious metals and miners
The turnaround from the direction that gold was headed during the last month has also supported silver prices. Silver fell marginally by 0.68% during the last trading month. Other precious metal counterparts like platinum rose ~3% and palladium fell ~2.60%.
Mining companies had a mixed performance during the last week. Companies like New Gold (NGD) and Pan America Silver (PAAS) rose on a five-day trailing basis. In contrast, companies like AngloGold Ashanti (AU) and GoldCorp (GG) fell on a five-day trailing basis. Together, these companies contribute ~13% to the Market Vectors Gold Miners ETF (GDX).
Global risk
Falling Chinese stocks followed by the other Asian countries like Japan, India and Singapore, coupled with weak US data increased the pressures regarding global growth. The rising uncertainty on the rate hike expectations and a probable delay due to the unfavourable outcome of the data could result in more market volatility. This could be positive for gold. For the first time since 2009, the hedge funds are having a net-long position in gold, according to the weekly data from the CFTC (Commodity Futures Trading Commission).
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VanEck Vectors Global Alternative Energy ETF
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PRODUCER |
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CODE : PAAS |
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ISIN : CA6979001089 |
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CUSIP : 697900108 |
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Asset profileContact Cpy |
Pan American Silver is a silver producing company based in Canada. Pan American Silver produces silver, copper, gold, lead and zinc in Argentina, in Bolivia, in Mexico and in Peru, develops gold and silver in Mexico, and holds various exploration projects in Argentina and in Mexico. Its main assets in production are QUIRUVILCA MINE, HUARON and MOROCOCHA in Peru, LA COLORADA, ALAMO DORADO, LLUVIA DE ORO and DOLORES MINE in Mexico, SAN VICENTE in Bolivia and MANANTIAL ESPEJO in Argentina, its main asset in development is LA PRECIOSA in Mexico and its main exploration properties are ORO BLANCO, EL DURAZNO, SAN ANTONIO ORO BLANCO, SANTA LUCIA, REAL VIEJO, PLANCHAS DE PLATA, LA DURA, LA RESERVA / EL CORREO, LA VIRGINIA GOLD/SILVER, LA CRUZ and LA BOLSA in Mexico, FLAMINGO, ESPEJO, REGALO, NAVIDAD, CALCATREAU, HOG HEAVEN, WATERLOO and LOMA DE LA PLATA (NAVIDAD) in Argentina, RIVER VALLEY PGM in Canada and PICO MACHAY in Peru. Pan American Silver is listed in Canada, in Germany and in United States of America. Its market capitalisation is 1.0 billions as of today (€ 973.1 millions). Its stock quote reached its lowest recent point on November 07, 2008 at 10.01, and its highest recent level on November 14, 2024 at 21.78. Pan American Silver has 47 442 200 shares outstanding. |