|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||12.81 - 12.86|
|52 Week Range||11.61 - 13.11|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.25%|
The International Monetary Fund (or IMF) also warned on April 18, 2018, that the unexpected rise in US inflation could cause significant global tensions, which could force central banks to respond firmly. It added that a hike in inflation in the US could lead the Federal Reserve to raise interest rates faster than expected. The director of the IMF’s monetary and capital markets department, Tobias Adrian, said, “What we are flagging is that at some point markets see shocks in inflation that raise inflation uncertainty and when that happens, that is associated with a rise in long-term interest rates and that might lead to a tightening in financial conditions.” While he said that the uncertainty regarding US inflation is very low, markets could have an outsized reaction to any spike.
One of the market indicators for gold that has been consistently playing a significant role in the determination of the directional move for precious metals is the US dollar, depicted by the Dollar Index (or DXY). The other three precious metals have fallen. The above chart shows the inverse relationship between the dollar and VXY over the past month. The relationship between precious metals (IAU) (SLV) and the US dollar (UUP) remains negative.
April 11, 2018, marked the fourth straight day of a rise in gold’s price. Gold rose 1.1% on the day and closed at $1,356.5 per ounce. The volatility reading in gold stood at 13%, a little higher than the previous day’s reading. Gold’s RSI (relative strength index) level also jumped to 61.
All These Are Playing Gold: Are You? When considering the performance of precious metals and precious metal mining companies, it’s important to analyze their interrelationship by way of spread measures. There has been a significant up-down movement in precious metals since the beginning of 2018.
All These Are Playing Gold: Are You? Gold had another up day on Monday, March 26, 2018, increasing 0.38% and touching its five-week high of $1,354.10 per ounce. It seems that the rise in precious metals was supported by the increased financial instability in the markets.
Precious metals were facing a down day as an extension to the losses from Thursday, March 8’s, losses. The decline in gold and other precious was mainly due to the strength of the US dollar against other currencies. The US dollar had risen almost 0.4% against the yen after the tumble last week, which followed the fear of trade wars due to tariffs.
Will Gold Lose Its Shine with the Spotlight on Bitcoin? The stock of bitcoin, for example, increases in number at a rate of approximately 4% per annum, and is engineered to slowly decline to zero growth around the year 2140. While gold can be mined without a date limit, its production rate has been quite small and steady.
With Market Mania, Is There Sanity in Gold? Capitalized at roughly $260 billion, according to VanEck research, the global gold industry is relatively small. Gold mining (GDX), like most other mining, is a cyclical industry.
This piece is focused simply on price action and the psychology which shapes it. When we use multiple timeframe analysis, we first consult the longer-term timeframe to develop our overall thesis, and then we drill down to shorter timeframes to develop our plan. Each candle on the chart combines the price action of 10 trading days.
The optimistic economic numbers not only led to a slump in equities on Friday and Monday, but they also helped gold recover from the low it touched on Friday. Gold fell about 1.2% on Friday due to the stronger economic numbers. The relationship between gold and equities is not very explicit, but the two tend to move away from each other during extreme market scenarios.