Yahoo Finance Slowly and Steadily, Gold Continues Its Move Southward
Key Macroeconomic Events that Could Impact Gold
Gold prices keep skidding
Gold futures for June expiration slipped yet another day on Monday, May 23, 2016—the fifth straight day of decline for the precious metal. Gold is now trading close to its three-and-a-half-week low price. Gold closed 0.11% lower on Monday and ended the day at $1,251.50 per ounce.
Gold has maintained a narrow trading range between $1,240–$1,260 per ounce over the last few trading sessions. Gold is trading 3.5% above its long-term, 100-day moving average price of $1,209.40 per ounce. However, the short-term, 20-day moving average price is spot on the current price.
Silver slips
Silver price dropped by 0.66%, closing at $16.40 per ounce. As with gold, the current price for silver is 5.4% above its long-term, 100-day moving average price of $15.60 per ounce and approximately equal to its short-term, 20-day moving average price.
The volatility in these two crucial precious metals has also been lower than their respective volatility highs touched during extreme market movements.
Miners and funds
Mining funds and mining shares often follow the pace of precious metals, and they have also been slowly declining in the past few days. The Global X Silver Miners ETF (SIL) and the iShares MSCI Global Gold Miners ETF (RING) fell by 0.31% and 0.78%, respectively, on May 23, 2016.
The mining shares that retreated the most on May 23 include Cia De Minas Buenaventura (BVN), IamGold (IAG), and Yamana Gold (AUY). These three shares lost 2.5%, 2.2%, and 2.3%, respectively. Combined, the three shares contribute 8.3% to the fluctuations of the VanEck Gold Miners ETF (GDX).
Several key economic situations, including the decisions of the Federal Reserve and a potential Brexit, substantially impact gold and the other precious metals. We’ll discuss this in the next article in this series.
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