| Dried-Up Gold Volume prior to the FOMC Policy-Setting Meeting | |
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Precious Metals Surge on FED's Dovish Meeting Declining volume
The federal take on interest rates caused the yellow metal market to dry up. With uncertainty about the outcome of the Fed meeting, investors remained close on their investments and preferred to stay away from extreme long or short positions on the bullion. Gold traded at $1,107 on September 14, and silver traded at $14.36 an ounce. Below is a chart that depicts the change in volume for gold futures on COMEX (Commodity Exchange). A significant decline in volume can be seen prior to the FOMC meeting.
Tracking miners and mining equity
Lower gold volumes and prices also impacted gold mining stocks such as Kinross Gold (KGC), Royal Gold (RGLD), and New Gold (NGD). KGC, RGLD, and NGD together account for ~10% of the Market Vectors Gold Miners ETF (GDX).
Other gold mining ETFs such as the Sprott Gold Miners ETF (SGDM) and the SPDR S&P Metals & Mining ETF (XME) had also fallen prior to the meeting.
Gold gained support at $1,100
Gold prices likely showed a support level at $1,100, with a minimum of $1,100 on September 9. Gold closed at $1,117 an ounce on Thursday, September 17, following the FOMC meeting. Aggregate open interest in gold futures was similar to the previous week’s figure at 414,000 contracts—a 13% drop from mid-July figures.
Gold-silver spread
The trading price of the gold-silver spread fell 2.05% and 0.5% on September 16 and 17, respectively, settling at ~$75 on Thursday, September 17. The historical volatility of the spread also increased on Thursday. A reduction in the spread signifies silver is getting stronger compared to the yellow bullion. Fed fund futures showed a 30% chance of an increase on Thursday, according to data compiled by Bloomberg. However, the optimism did not turn heads.
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Royal Gold Inc.
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PRODUCTEUR |
CODE : RGLD |
ISIN : US7802871084 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Royal Gold est une société basée aux Etats-Unis D'Amerique. Royal Gold est productrice d'or, d'argent, de cuivre, de plomb et de zinc en USA, au Burkina Faso, au Canada, au Chili, au Mexique, au Nicaragua, en Argentine, en Bolivie et en Guinee, en développement de projets d'argent, de cuivre, d'or, de plomb et de zinc au Burkina Faso, au Canada, au Chili et en Australie, et détient divers projets d'exploration au Canada, en Argentine, en Bulgarie et en Finlande. Ses principaux projets en production sont BALD MOUNTAIN en USA, LIMON, LEEVILLE MINING COMPLEX et GOLDSTRIKE OPEN PIT au Nicaragua, DON MARIO (CERRO PELADO) et ROBINSON (NEVADA) en Bolivie, EL CHANATE, PEÑASQUITO, WHARF, MARIGOLD, DOLORES MINE, MULATOS MINE -ESTRELLA et GOLDSTRIKE UNDERGROUND au Mexique, SIGUIRI en Guinee, TAPARKO au Burkina Faso, MARTHA MINE en Argentine, ANDACOLLO HYPOGENE, TOQUI et ANDACOLLO au Chili et WILLIAMS, TWIN CREEKS, PIPELINE MINING COMPLEX et TROY au Canada, ses principaux projets en développement sont GOLD HILL et PASCUA LAMA au Chili, HOLT MINE & MILL et PINE COVE (MINGS BIGHT) au Canada, BALCOOMA en Australie et BOUROUM au Burkina Faso et ses principaux projets en exploration sont CANADIAN MALARTIC (QUEBEC), GOLDSTRIPE WILLA, MANHATTAN (WHITE CAPS) et CAMP BIRD MINE au Canada. Royal Gold est cotée au Canada, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 8,0 milliards US$ (7,5 milliards €). La valeur de son action a atteint son plus bas niveau récent le 28 février 1992 à 0,03 US$, et son plus haut niveau récent le 25 avril 2024 à 122,89 US$. Royal Gold possède 65 455 293 actions en circulation. |