The Weekly Dig - September 30, 2016
Mick Carew, PhD and The Haywood Mining Team
Gold Volatility Continues as Investors Eye End of Year Fed Meeting
Highlights:
- Gold and gold equities continued their volatile run this week as investors adjusted to last week’s decision by the Federal Reserve to not raise interest rates, but keeping the door open for a rate hike before the end of the year. Since mid-August, the price of gold has fluctuated, rising as high as $1,351 per ounce on September 6 to as low as $1,305 per ounce on August 31st. Gold equities have followed suit, with the S&P/TSX Global Gold Index rising and falling twice between 230 and 250 in September. Gold ETF’s, including SPDR Gold Shares (GLD-NYSEARCA), also fell this week. It appears likely that this volatility will persist at least until the end of the year given the impending U.S. election in November and the possibility of a rate rise in November or December, and the question remains will gold remain above the $1,300 per ounce level. Gold (↓1.5%), along with silver (↓2.6%) and platinum (↓2.6%), were down this week, finishing at $1,317, $19.19 and $1,028 per ounce respectively. Palladium bucked the trend, finishing higher (↑2.6) at $721 per ounce. Base metals were mixed this week; copper continued to defy sceptical investors and was up slightly to finish at $2.21 per pound, nickel fell 1% to finish at $4.78 per pound, while both lead (↑10%) and zinc (↑5%) finished strongly this week, closing at $0.96 and $1.08 per pound respectively. The price of WTI crude rallied this week after news that OPEC agreed to limit supply to support low prices. This comes as Iraq boosted exports and Libya reopened some of its main terminals. WTI crude finished at $48 per barrel on Friday. Finally, the UxC Weekly Spot Price of uranium fell further (↓7.2%), finishing at $22.38 per pound on Friday.
Quelle: stockcharts.com
Quelle: stockcharts.com
Quelle: stockcharts.com
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