Why Coeur Mining Stock Dropped Today

Coeur Mining (NYSE: CDE) banal declined 6.6% done 10:25 a.m. ET Monday connected sliding golden prices arsenic warfare continues to rage successful the Middle East. Investors often bargain golden arsenic a harmless haven successful times of struggle -- and they did this time, too. However, arsenic the struggle drags on, golden prices person turned south.

Gold miner Coeur banal is pursuing them lower.

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Gold closed February astir $5,278 per ounce, according to information from TradingEconomics.com. Prices spiked erstwhile U.S. and Israeli forces began striking Iran past week, rising arsenic precocious arsenic $5,416 Monday earlier opening to fade.

At past report, golden was trading astatine $5,079 per ounce, down 1.5% from Friday's close.

The metallic communicative is similar, and Coeur mines some golden and silver, truthful this 1 is besides worthy a look. Silver closed astatine $93.73 per ounce astatine the extremity of February earlier moving higher, topping $96.10 Monday. Today, metallic is down 0.5% to $83.90 per ounce.

Why are precious metals prices falling? For 1 thing, the U.S. dollar -- besides a harmless haven -- is strengthening.

The U.S. dollar index, which compares the dollar's worth to a handbasket of planetary currencies, is up astir 1.7% since the warfare began. A "stronger dollar" means you request less dollars to bargain an ounce of gold. Thus, erstwhile the dollar rises, the terms of golden (in dollar terms) falls.

Interest rates tin besides impact golden prices, and complaint worries are rising. When involvement rates rise, investors look the prime betwixt owning gold, which doesn't wage interest, and owning bonds, which do. Investors whitethorn merchantability golden to bargain bonds, and erstwhile this happens -- again -- the terms of golden drops.

This is wherefore Coeur banal dropped today.

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