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Gold Falls on Strengthening US Dollar Geopolitical tension
Gold futures for February delivery fell 1% in yesterday’s trade following the stabilization of the equity markets around the world. Gold fell about $10 from the previous day’s close of $1,085.2 per ounce. Silver prices also fell 0.83% to close at $13.7 per ounce.
The S&P 500 Index rose about 0.8% yesterday. The European market also saw a brighter day as the stock markets rallied after the recent plunge. The Chinese currency, which caused the market turmoil, also stabilized for the third straight day. Gold has risen about 2.2% since the start of the year due to the volatility in the markets extended by the yuan’s devaluation and further global concerns in North Korea and the Middle East.
The chart above maps the historical performance of the S&P 500 Index against the performance of gold. The S&P 500 Index is reflected in the performance of the SPDR S&P 500 ETF (SPY).
Miners plunge
Geopolitical tension has led to the fall of stocks but has given a lift to gold and gold-based stocks and ETFs. However, the pullback in stocks proved harmful to gold ETFs, which fell in yesterday’s trade.
The Global X Silver Miners ETF (SIL) and the leveraged Direxion Daily Gold Miners Bull 3x ETF (NUGT) plunged 4.7% and 6.4%, respectively, yesterday. They have seen trailing-five-day losses of 8.3% and 9.6%, respectively. Most of the mining-based stocks also fell as a result of the weakness in the bullion markets. Eldorado Gold Corporation (EGO), Royal Gold (RGLD), and Silver Wheaton Corporation (SLW) fell 19.2%, 7..2%, and 5%, respectively, in yesterday’s trade. These three stocks together have a weight of 13.3% in 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. |