| 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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PRODUCER |
CODE : AU |
ISIN : US0351282068 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
AngloGold is a gold producing company based in . AngloGold produces gold, copper, silver and zinc in Argentina, in Australia, in Brazil, in Canada, in Ghana, in Guinea, in Mali, in Namibia, in South Africa and in Tanzania, develops gold and iron in Australia, in Brazil, in Colombia, in Congo Dem. Rep. of and in South Africa, and holds various exploration projects in Philippines. Its main assets in production are CRIXÁS, MINERAÇÃO, SAO BENTO, ANGLOGOLD ASHANTI MINERAÇAO and CRIXAS MINE in Brazil, SUNRISE DAM GOLD MINE in Australia, NAVACHAB MINE and NAVACHAB in Namibia, YATELA, MORILA and SADIOLA in Mali, CERRO VANGUARDIA in Argentina, MPONENG (WESTERN DEEP NO. 1 SHAFT), TAUTONA (WESTERN DEEP NO.3 SHAFT), BAMBANANI, TAU LEKOA, MPONENG, SAVUKA, TAU TONA, GREAT NOLIGWA, KOPANANG and CRIPPLE CREEK & VICTOR (CRESSON MINE) in South Africa, SIGUIRI in Guinea, TEBEREBIE, IDUAPRIEM, OBUASI and KUBI in Ghana, GEITA in Tanzania and TROUT LAKE MINE and CALLINAN MINE in Canada, its main assets in development are MOAB KHOTSONG in South Africa, MINAS-RIO in Brazil, LA COLOSA and GRAMALOTE in Colombia, KIBALI (KILO-MOTO) in Congo Dem. Rep. of and TROPICANA in Australia and its main exploration properties are HUALATAN and ER in Peru, MKURUMU in Tanzania, 777 PROJECT and RIVARD in Canada, LOUBOUGOULA, GOODPASTER and ALAMOUTALA (SADIOLA II) in Mali, BAMBADJI in Senegal, MORRO VELHO in Brazil and SIANA in Philippines. AngloGold is listed in Australia, in Germany and in United States of America. Its market capitalisation is US$ 9.0 billions as of today (€ 8.4 billions). Its stock quote reached its lowest recent point on November 23, 2018 at US$ 10.00, and its highest recent level on April 24, 2024 at US$ 21.92. AngloGold has 409 109 984 shares outstanding. |