The strong economic numbers from the US during 1Q17 have been casting a shadow over precious metals, as strong data could imply sooner-than-expected interest rate rises. Rising interest rates are negative for precious metals, as they don’t pay interest like Treasuries.
Investors are keeping a close watch on the upcoming French election and the Brexit filings for further insight into market risk. Market sentiment has played an important role on precious metals like gold and silver. Gold and silver have been on an upswing since the beginning of 2017. Funds like the iShares Gold Trust (IAU) and the iShares Silver Trust (SLV) have followed precious metals. They have risen 9.1% and 14.7%, respectively, on a YTD basis.Risk Warning:
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.