Why Hecla Mining Stock Dropped Today

Hecla Mining (NYSE: HL) banal declined 2.5% done 11:35 a.m. ET Monday connected sliding golden prices -- but rising metallic prices.

War continues to rage successful the Middle East, driving investors to bargain golden and metallic arsenic harmless havens. A mates macroeconomic trends are interfering with this instinct, however, and this has been atrocious quality for Hecla banal recently.

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Hecla chiefly mines silver. Silver closed astatine $93.73 per ounce astatine the extremity of February, according to information from TradingEconomics.com. It past moved higher, topping $96.10 a week ago. Silver past slid, but contiguous it's bouncing 0.6% to $84.81 per ounce -- which should be bully quality for Hecla.

Gold is the problem, and Hecla besides mines gold. Gold closed February astir $5,278 per ounce. Prices spiked erstwhile U.S. and Israeli forces began bombing Iran, rising arsenic precocious arsenic $5,416 past Monday earlier falling back. At past report, golden was trading astatine $5,095 per ounce, down 1.2% from Friday's close.

Silver is inactive down 12% from its caller high, though, versus golden down lone 6%. Silver frankincense has much country for improvement.

More broadly, 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 silver. Thus, erstwhile the dollar rises, the terms of metallic (in dollar terms) falls.

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

That's wherefore Hecla banal is down today.

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