|Day's Range||1,222.20 - 1,235.20|
(Reuters) - Canadian miner Barrick Gold Corp said on Monday its Chief Executive Officer Kelvin Dushnisky will step down and take the top job at South African gold producer AngloGold Ashanti Ltd. Dushnisky, who joined Barrick in 2002, will step down by end-August. (This version of the story has been refiled to correct to 2002 from 2012 in the 2nd Paragraph.) (Reporting by Laharee Chatterjee in Bengaluru; Editing by Sai Sachin Ravikumar)
After significantly outperforming its peers in 2017, Kinross Gold (KGC) has underperformed this year. KGC’s YTD (year-to-date) return is lower than that of its close peers Newmont Mining (NEM), Barrick Gold (ABX), and Goldcorp (GG), which have returned -1.8%, -10.8%, and 3.6%, respectively. While KGC’s operational performance has been going as planned, there are variables companies can’t control—and it’s one of those uncontrollable variables to which Kinross stock has fallen prey.
Banks and brokerages have cut their average gold price forecasts for this year and next after heavy losses in the second quarter, but expect the metal to bounce back towards $1,300 an ounce, a Reuters poll showed on Monday. A poll of 35 analysts and traders conducted this month forecast an average gold price of $1,301 an ounce in 2018 and $1,325 in 2019, from predictions of $1,334 and $1,352 respectively in a similar poll three months ago. The revisions come after gold plunged from $1,365.23 in April to around $1,220, under pressure from a strengthening dollar, expectations of higher U.S. interest rates, a large decline in gold held by exchange-traded funds and a sell-off by speculative investors.
Newmont Mining (NEM) is one of the few gold mining stocks to have given positive returns in the first half. As of June 30, it has returned 0.5%, compared to a loss of 4.0% for the VanEck Vectors Gold Miners ETF (GDX). The company is expecting its unit costs to rise in 2018 due to the working off of higher stripping at Carlin, Boddington, Ahafo, and Twin Creeks.
There are additional headlines being printed that could have an effect on the direction of gold prices, but only if they affect the three main influences on gold at this time – appetite for risk, raising Treasury yields and the U.S. Dollar. The best scenario for bullish gold traders would be lower demand for risky assets, a drop in Treasury yields due to flight-to-safety buying and a further break in the U.S. Dollar.
The gold market started the Friday’s session with a positive momentum and was also helped by the tweet from US President suggesting Fed to keep interest rate lower. The strengthening of USD was keeping the market under pressure but now as the things have reversed for a short period of time, the gold prices will trade in an upside direction and if it crosses above the $1240 level, then more buyers will enter the market.
Many silver stocks looked beaten up in 2017, either near a bottom or struggling to overcome a resistance price. Most of these stocks remain at prices below their 50-day moving averages, and this is usually a bearish sign.
Shinil Group, a South Korea treasure-hunting company, has announced that it will launch an ICO after discovering worth $130 billion in gold from the wreckage of the Russian cruiser Dmitrii Donskoi. Dmitrii Donskoi was scuttled in 1905 after being severely damaged in the Russo-Japanese War. Since then, it has been ‘found’ many times in the past two decades.
“If we were to use a human term to describe a textile,” American Fabrics magazine wrote in 1962, “we might say that denim is an honest fabric—substantial, forthright, and unpretentious.” Created for California gold miners, blue jeans have come a long way since 1873, when Levi Strauss and Jacob Davis obtained US patent #139,121 for…
This week’s price action in gold will once again be dictated by the direction of the U.S. Dollar. While rising Treasury yields could boost the dollar, additional tweets or comments from President Trump on monetary policy or tariffs on China could limit the dollar’s gains or even drive it lower. This would be supportive for gold prices.
Another big week ahead, U.S earnings, 2nd quarter GDP numbers, Trade wars and ECB monetary policy all in focus.
The S&P 500 was very choppy in the week on Friday, reaching just above where we opened in the CFD market. As I record this, it looks as if the 2810 level is going to offer significant resistance. I think that resistance extends higher, so at this point I don’t think the market is quite ready to take off.
Crude oil markets got pummeled on Friday as the bearish pressure came back into play immediately. We are covering towards the lows of the week, signaling that perhaps we will see continued selling pressure, and at this point I think that rallies will continue to struggle.
Natural gas markets were relatively flat on Friday, as we test the $2.78 level. It looks as if the market is ready to roll over a bit as we approached the 200 hour moving average. Beyond that, there seems to be a lot of supply in the neighborhood, and of course we are in a recent downturn.
Gold markets rally during the trading session on Friday, breaking towards the $1230 level before running into a bit of resistance. The market had been oversold to begin with, so when Donald Trump suggested that interest rates in America needed to stay lower, that sparked a US dollar selloff.
The EUR/USD pair was having a fairly quiet Friday, that was until President Donald Trump tweeted that the US dollar was being unfairly strengthened due to soft economic policy by the EU, Japan, and many other countries. Ultimately, I find this a bit ironic, considering that he doesn’t have the power to change monetary policy.
Investing.com – Metal prices were higher Friday as the dollar moved sharply lower after President Donald Trump said higher interest rates and the strength of the greenback were hampering economic growth.
Gold prices finished with a gain on Friday as comments President Donald Trump, showing his displeasure with Federal Reserve interest-rate increases, prompted a decline in the benchmark dollar index. Overall strength in the dollar and a "slow but steady rise in real interest rates have been the two most notable bearish influences on gold" since the first quarter, say Tyler Richey, co-editor for the Sevens Report.
Gold prices rose on Friday as U.S. President Donald Trump criticized the Federal Reserve for increasing interest rates. Comex gold futures for August delivery rose 0.47% to $1,229.70 a troy ounce as of 10:29 AM ET (14:29 GMT). Trump said in an interview on CNBC that he does not approve of how the Fed is approaching monetary policy.
Fresh Sell-Off Hits Gold: Is $1,200 the Next Stop? Investors, market participants, and analysts have been puzzled by gold’s weakness in recent months despite escalating trade war tensions and geopolitical risks. The Fed’s aggressive stance on interest rate hikes has also been weighing on gold.
Many investors might seek to buy gold at a discounted price while some risk aggressive investors want to short gold for the near term via ETFs.
With gold slipping into correction territory, there is still some hope for the gold stocks that have witnessed rising earnings estimates and has a favorable Zacks Rank.
Investors are typically interested in gold mining companies’ (GDX)(GDXJ) ability to generate FCF (free cash flow) because FCF helps them invest in future growth—apart from the aim of returning cash to shareholders.
Fresh Sell-Off Hits Gold: Is $1,200 the Next Stop? In the previous part, we discussed how gold prices lost ~1% following Fed Chair Jerome Powell’s strong outlook for US economic growth and his conviction in the gradual rate hike path. Gold fell ~0.43% on July 19 and ended the day at $1,218 per ounce.
Southern Copper (SCCO) is poised well on expansion projects and solid outlook for metal prices. However, lower production and higher debt remain concerns.