| Inverse Relationship: Precious Metals and the US Dollar | |
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Precious Metal Prices Recover as the US Dollar Retreats (Continued from Prior Part) Gold and the US dollar
On December 18, the loss in the US dollar increased precious metal prices. Precious metals are dollar-denominated assets. A weaker dollar enhances the price. The dollar-denominated assets get cheaper for investors in other currencies. Also, the loss in the equities market buoyed precious metals’ prices.
Precious metals’ prices are inversely related to the price of the US dollar. The US dollar is depicted by the DXY Currency—it prices the dollar against the six major world currencies. It fell by about 9.4% on a YTD (year-to-date) basis. In contrast, gold rose by 9.8% on a YTD basis.
The above chart shows the historical price performance of gold and the US dollar.
Mining sector
Leveraged mining-based ETFs like the Direxion Daily Gold Miners ETF (NUGT) and the ProShares Ultra Silver (AGQ) rose by 6.2% and 5.9%, respectively, on Friday. The rise in the precious metals extended to the mining sector. Mining-based companies like Coeur Mining (CDE), Barrick Gold (ABX), and AngloGold Ashanti (AU) rose by 5.6%, 4.2%, and 5.4%, respectively, on the same day. Coeur Mining and AngloGold Ashanti are trading significantly below their 100-day moving prices. They’re trading at a 9.2% and 9.6% discount from their 100-day moving averages. In contrast, Barrick Gold is near its 100-day moving average.
Together Coeur Mining, Barrick Gold, and AngloGold Ashanti account for 11.8% of the price fluctuations in the Market Vectors Gold Miners ETF (GDX). GDX rose by 1.8% in the last trading month. It fell by 26.4% on a YTD basis.
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PRODUCTEUR |
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CODE : CDE |
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ISIN : US1921085049 |
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Coeur Mining est une société de production minière d'argent et d'or basée aux Etats-Unis D'Amerique. Coeur Mining est productrice d'argent, d'or, de cuivre, de plomb et de zinc en USA, au Mexique, en Australie, en Argentine et en Bolivie, en développement de projets d'argent et d'or en Argentine et en Bolivie, et détient divers projets d'exploration au Mexique. Ses principaux projets en production sont ROCHESTER MINE - NEVADA PACKARD en USA, ENDEAVOR et BROKEN HILL en Australie, PALMAREJO au Mexique, MARTHA MINE en Argentine et SAN BARTOLOME en Bolivie, ses principaux projets en développement sont ROCHESTER et KENSINGTON en Bolivie et JOAQUIN en Argentine et ses principaux projets en exploration sont KENSINGTON/JUALIN en Argentine, LAKE VICTORIA GOLD BELT en Tanzanie et EL REALITO, GUADALUPE et LA PATRIA au Mexique. Coeur Mining est cotée au Canada, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 292,0 millions (275,1 millions €). La valeur de son action a atteint son plus haut niveau récent le 21 novembre 1997 à 99,38 , et son plus bas niveau récent le 22 janvier 2016 à 1,62 . Coeur Mining possède 47 442 200 actions en circulation. |