| 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 ~$75 on Thursday, September 17. The historical volatility of the spread also increased on Thursday. A reduction in the spread signifies silver is getting stronger compared to the yellow bullion. Fed fund futures showed a 30% chance of an increase on Thursday, according to data compiled by Bloomberg. However, the optimism did not turn heads.
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Kinross Gold Corporation
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PRODUCTEUR |
CODE : K.TO |
ISIN : CA4969024047 |
CUSIP : 496902404 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Kinross Gold est une société de production minière d'or basée au Canada. Kinross Gold est productrice d'or, d'argent en USA, au Bresil, au Canada, au Chili, au Ghana, en Mauritanie et in Russia, en développement de projets d'argent, de cuivre et d'or au Chili, et détient divers projets d'exploration au Canada, au Chili et in Russia. Ses principaux projets en production sont ROUND MOUNTAIN en USA, CRIXÁS, MORRO DO OURO et PARACATU au Bresil, REFUGIO MINE (VERDE AND PANCHO), FORT KNOX, MARICUNGA et LA COIPA au Chili, PORCUPINE et MUSSELWHITE au Canada, CHIRANO au Ghana, TASIAST en Mauritanie et KUPOL in Russia, ses principaux projets en développement sont KETTLE RIVER, GOLD HILL et CERRO CASALE au Chili et ses principaux projets en exploration sont AHAFO NORTH, BIBIANI NORTH, BOLE, BOLE - BOLGATANGA, AKYEM, RUSSIAN MOUNTAIN, HORN MOUNTAIN, GIL, ENCHI et GOLDBANKS - KINROSS au Ghana, FRUTA DEL NORTE en Equateur, HAMMOND REEF au Canada, KUBAKA MINE - BIRKACHAN in Russia et LOBO-MARTE au Chili. Kinross Gold est cotée au Canada, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 11,2 milliards CA$ (8,2 milliards US$, 7,7 milliards €). La valeur de son action a atteint son plus bas niveau récent le 27 octobre 2000 à 1,43 CA$, et son plus haut niveau récent le 13 décembre 2002 à 9,99 CA$. Kinross Gold possède 1 246 749 952 actions en circulation. |