mining declare : CHARTS: Gold price vs Fed vs ETF investors vs hedge funds : 2017-05-09

collected by :Irax John

As it stated in The spike in the gold price after the Fed's mid-March rate hike was even more dramatic. In December 2015, gold lost 2% during the month leading up to the hike, only to rally by 2.6% the following month. Most of the losses seen following Donald Trump winning the Presidency and the pre-FOMC rate hike jitters were recovered. Gold and bond yields have a strong inverse correlation as the metal provides no income and investors have to rely on price appreciation for returns. The gold price came under pressure again on Tuesday falling to an eight-week low as safe haven demand following the French election dries up and rising yields in the US pull investors out of the gold market.


referring to But lately, it's taking more than threats of war or terrorist attacks to get much of a reaction from the bullion market. "It's the purchase of the ETFs -- that's been driving the gold price versus systemic risk around politics." Spot gold prices gained 0.1 percent, and declined a day later. That doesn't mean gold volatility is gone forever. On Jan. 30, gold prices rose no more than 0.7 percent after the International Monetary Fund said in a draft report that the country's financing needs will prove " explosive" in decades to come.
referring to

Gold Resource Corp.: ETF Changes Create Buying Opportunity - Gold Resource Corporation (NYSEMKT:GORO)

As a result, in April VanEck decided to reconstitute (and expand) the stocks underlying the GDXJ ETF, as explained in its note from April 21. Impending changes to the constitution of a popular junior gold mining fund, the VanEck Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ), have created buying opportunities in many of its constituents, including in a name that I follow closely: Gold Resource Corp. (NYSEMKT:GORO). Disclosure: I am/we are long GORO, GDXJ. One important piece of corroborating evidence to support this conclusion is the price relationship of GORO and GDXJ to gold and silver. I hope to sell the trading facebook/" target="_blank">shares in increments from $4 to $6 per share, while holding my core shares for my ultimate >$10 share price.

Gold Resource Corp.: ETF Changes Create Buying Opportunity - Gold Resource Corporation (NYSEMKT:GORO)


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