Friday has brought some unexpected surge on the precious metals ETFs. But you have to keep in mind that those commodities are going down heavily for the past weeks. Gold has broken $1100 per ounce, palladium has lost 8% in three weeks, platinum has lost 4% in two weeks, and so on…
It is then not that unusual that the sector recovered a bit. The precious metals are in the mid-term downward trend – the ETFs focusing on them has lost around 20% during the past two weeks on average.
The last two trading days brought some relieve, and the metals beat the S&P Index by more than 8% (including beta value).
This recovery might not last too long, because the FED’s decision is still a burden, the higher interest rates will favor the stronger US Dollar and maybe but maybe the precious metals will start stabilizing some time after the first lift in the interest rates.