VIDEO - Precious Metals Update July 2019

Precious Metals

In this July update, INN looks back at how precious metals fared for the month and what industry experts are saying about the sector.

In this video, the Investing News Network looks at the key events and developments that took place in the precious metals space during the month of July.

July brought stability and prosperity to the precious metals, as investors sought out their safe haven nature during another month that was ripe with geopolitical issues and a lower US dollar.

The yellow metal managed to rally for yet another month, gaining over 3 percent during the period. It continued to be supported by heightened tensions between the US and both China and the Middle East.

Additionally, investors have gained more interest in the gold space as they await news on a potential interest rate cut that is expected to take place at the end of July.

In terms of price, gold found its highest point on July 18, when it closed the trading day at US$1,445.50 per ounce. At the end of the month, the metal was trading just below US$1,430.

While July brought a slew of second quarter results from major gold miners, news also came in the form of Barrick Gold (TSX:ABX,NYSE:GOLD) and Newmont Goldcorp (TSX:NGT,NYSE:NEM) officially launching their joint venture project in Nevada, which created the world’s largest gold complex with the introduction of Nevada Gold Mines.

Barrick holds a 61.5 percent stake in the new company and will also act as the operator; meanwhile, Newmont owns 38.5 percent.

Additionally, Dundee Precious Metals (TSX:DPM,OTC Pink:DPMLF) released a preliminary economic assessment for its Timok gold project in Serbia.

As for silver, July was the month in which the white metal finally began to make more substantial gains, climbing over 8 percent during this time.

It appears as though silver has begun to enjoy the fruits of gold’s rally, as the precious metal hit its highest point on July 19 when it reached levels not seen since 2016 and closed the day at US$16.49 per ounce. At the end of July, silver was trading around US$16.40.

In other silver news, Santacruz Silver Mining (TSXV:SCZ,OTC Pink:SZSMF) rose over 12 percent on July 2 after it acquired a 50 percent stake in PCG Mining through its subsidiary Carrizal Holdings.

For palladium’s part, while the metal was down slightly in July, it remains the highest trading precious metal, even despite gold’s rally. Palladium hit its highest level on July 10, when it closed the day at US$1,575 per ounce. Towards the end of the month the metal was trading at around US$1,510.

Finally, platinum gained during the month, climbing just under 3 percent and staying above the US$800 per ounce level. Platinum peaked at US$858 on July 19 and finished the month just under US$850.

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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.

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