| 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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Coeur d'Alene Mines Corporation
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PRODUCER |
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CODE : CDE |
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ISIN : US1921085049 |
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Asset profileContact Cpy |
Coeur d'Alène is a producing silver and gold company based in United states of america. Coeur d'Alène produces silver, gold, copper, lead and zinc in Argentina, in Australia, in Bolivia, in Mexico and in USA, develops gold and silver in Argentina and in Bolivia, and holds various exploration projects in Mexico. Its main assets in production are ROCHESTER MINE - NEVADA PACKARD in USA, ENDEAVOR and BROKEN HILL in Australia, PALMAREJO in Mexico, MARTHA MINE in Argentina and SAN BARTOLOME in Bolivia, its main assets in development are ROCHESTER and KENSINGTON in Bolivia and JOAQUIN in Argentina and its main exploration properties are KENSINGTON/JUALIN in Argentina, LAKE VICTORIA GOLD BELT in Tanzania and EL REALITO, GUADALUPE and LA PATRIA in Mexico. Coeur d'Alène is listed in Canada, in Germany and in United States of America. Its market capitalisation is US$ 1.6 billions as of today (€ 1.3 billions). Its stock quote reached its highest recent level on November 21, 1997 at US$ 99.38, and its lowest recent point on January 22, 2016 at US$ 1.62. Coeur d'Alène has 185 442 526 shares outstanding. |