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Gold at 2-Month High on Safe-Haven Calls Gold and silver
Gold and silver future prices for April and March expiration, respectively, rose by 1.4% and 2.2% on Tuesday, January 26, before the FOMC (Federal Reserve Open Market Committee) gave its verdict on the key interest rate yesterday. The overall market sentiment favored the rise of precious metals as a result of the safe-haven calls that began when the equity markets started struggling.
Over the last month, gold and silver have risen by 4.8% and 4%, respectively. The rise of these metals has gone hand-in-hand with the rise of the US dollar. The US Dollar Index (DXY), which measures the US dollar against six major world currencies, has also risen by about 1.2% over the past month. The safe-haven calls have also been reflected in the dollar, as it is a currency often chosen during times of uncertainty.
An important indicator for calculating the relative performance of gold and silver is the gold-silver ratio, or the gold-silver spread, which represents the number of silver ounces required to buy a single ounce of gold. The gold-silver ratio was 77.7 yesterday. This is approximately 1.4% higher than the 100-day moving average of 76.6.
The above chart shows that silver gained strength compared to gold in December 2015, as the gold-silver ratio fell to approximately 75 following the FOMC’s mid-December meeting. The rise of interest rates in December weighed on gold, which also pulled the spread lower.
Miners rise
The Global X Silver Miners ETF (SIL) and the SPDR Metals and Mining ETF (XME) have fallen by 6.4% and 14.5%, respectively, since the beginning of the year. Mining-based equities like Pan American Silver Corporation (PAAS), Silver Wheaton Corporation (SLW), and Yamana Gold (AUY) have risen by 14%, 6.9%, and 12.9%, respectively, on a trailing-five-day basis. These three stocks make up 10.5% of the Market Vectors Gold Miners ETF (GDX).
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Silver Wheaton
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PRODUCER |
CODE : SLW.TO |
ISIN : CA8283361076 |
CUSIP : 828336107 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Silver Wheaton is based in Canada. Silver Wheaton produces silver, copper, gold, lead, silica and zinc in Canada, in Greece, in Mexico, in Peru, in Portugal and in Sweden, develops copper, gold, silver and zinc in Canada and in Chile, and holds various exploration projects in Argentina and in Portugal. Its main assets in production are ZINKGRUVAN in Sweden, KENO HILL (BELLEKENO) and MINTO MINE in Canada, SAN MARTIN - LUISMIN, PEÑASQUITO, LUISMIN and G-9 CAMPO MORADO in Mexico, YAULIYACU in Peru, STRATONI in Greece and NEVES-CORVO in Portugal, its main assets in development are PASCUA LAMA in Chile and KUTCHO CREEK in Canada and its main exploration properties are PROMOTORIO DURANGO and MONTOROS in Mexico, ALJUSTREL in Portugal and LOMA DE LA PLATA (NAVIDAD) in Argentina. Silver Wheaton is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 12.6 billions as of today (US$ 9.2 billions, € 8.4 billions). Its stock quote reached its lowest recent point on March 09, 2007 at CA$ 10.01, and its highest recent level on May 15, 2017 at CA$ 28.53. Silver Wheaton has 441 520 000 shares outstanding. |