Why Most Precious Metal Miners Have Fallen

Cassie Bastien

7/6/2017 1:07:45 PM

Daily Gold & Silver Market Report – 07/06/2017

As market prices for Precious Metals such as Gold, Silver and Platinum dropped Monday due to a stronger U.S. dollar, most mining shares also experienced a downturn. Market Realist Reporter Meera Shawn lists four mining stocks trading below their 20-day moving averages. However, Shawn says, “A substantial discount below a stock’s trading price suggests a possible upward correction in price. ... Since the target prices of most miners, including the four [shown in the report], are above their current trading prices, it indicates a positive outlook for prices in the near term.” Nonetheless, correlations can move in different directions at different times, which will cause reactions from miners according to the prices of each Precious Metal.

Gold Settles Higher After U.S. Fed Meeting

Gold prices began their rebound Wednesday after negative U.S. economic data and North Korea’s ballistic-missile test drew investors to safe-haven assets. Reporters Myra P. Saefong and Rachel Koning-Beals said, “Prices briefly struggled for direction in electronic trading, before eventually easing back as investors weighed the release of minutes from the U.S. Federal Reserve’s June meeting.” After dropping 1.9 percent Monday, the yellow metal managed to regain some ground. Editor of Gold Newsletter Brien Lundin told MarketWatch, “The Fed minutes were anticlimactic, revealing little that the investing public didn’t already assume.” Saefong and Koning-Beals said, “The summary of the central bank’s last meeting suggests that it could trigger a long-awaited move to reduce its massive $4.5 trillion in debt holdings by September.” However, investors will look to further Fed comments later this week, including Vice Chair Stanley Fischer Thursday, for hints on interest rate hike timing.

At 2:24 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,226.60 Up $2.10
• Silver, $16.10 Up $0.10
• Platinum, $913.20 Up $2.40
• Palladium, $842.30 Down $2.10

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