|Day's Range||1,421.10 - 1,454.40|
MUMBAI/BENGALURU (Reuters) - Consumers in leading Asian hubs continued to sell off physical gold this week, with some switching their holdings to silver, after a jump in prices that also attracted interest from investors betting further gains. "Demand has been muted, with most people selling off gold to take profit," said Brian Lan, managing director at Singapore dealer GoldSilver Central. In Hong Kong, gold was sold at a premium of $0.50-$1.20 an ounce, compared with a discount of 30 cents to a $1.20 premium last week.
Barrick Gold could sell some mining assets owned by Acacia Mining after it gains full control of its African unit, chief executive Mark Bristow told Reuters. Barrick on Friday struck a deal to buy out fellow shareholders in Acacia after raising its offer.
(Bloomberg) -- Billionaire hedge-fund manager Ray Dalio sent ripples through the gold market this week when he advised buying the metal, but he’s part of a bigger wave.In the past month, banks including Goldman Sachs Group Inc., Citigroup Inc. and Morgan Stanley have raised their forecasts for bullion or touted its prospects, while holdings in exchange-traded funds linked to gold rose to a six-year high. Richard Hayes, chief executive officer of Australia’s Perth Mint, said buying by central banks is adding to the enthusiasm.Bullion is getting more attention from institutional investors as the prospect of slowing economies, lower interest rates and rising global tensions drives demand for the metal as a store of value. Gold, which benefits from low rates because it doesn’t pay interest, has since late May generated the best returns in the Bloomberg Commodity Index.“Safe-haven flows into the asset class in light of geopolitical risks and unresolved trade tensions continue to support the gold price,” Darwei Kung, head of commodities and portfolio manager at DWS Investment Management Americas Inc., said in an emailed report.According to Dalio, the founder of Bridgewater Associates, stimulus from central banks that’s helped bolster asset prices is nearing its limit and having diminishing effects on economies. Such stimulus will lead to more negative real and nominal returns, spurring investors to seek alternative forms of money such as gold or other stores of wealth, Dalio said this week in a LinkedIn post.‘Paradigm Shift’He sees a coming “paradigm shift” in the next few years as an enormous amount of debt and non-debt liabilities such as pension and health care comes due and can’t be funded with assets. That will lead to “some combination of large deficits that are monetized, currency depreciations, and large tax increases.”Assets “that will most likely do best will be those that do well when the value of money is being depreciated and domestic and international conflicts are significant, such as gold,” Dalio said.Investor demand has kicked into high gear since the Federal Reserve signaled in June that it may begin cutting U.S. interest rates as early as this month to shore up growth. That could set the metal up for a fall if the Fed doesn’t follow through as investors expect. The market is currently pricing in a 50-basis-point cut, “and any change in sentiment could see a sharp reversal to the downside,” according to DWS’s Kung.Wealth EffectStill, Goldman analysts including Mikhail Sprogis and Sabine Schels said in a June 25 report that bullion doesn’t need fear to prosper. While a gradual brightening of prospects for the world economy in the second half of 2019 and receding worries of recession could lead to lower “fear”-driven demand for bullion, that will probably be offset by a positive “wealth” effect, the bank said.Gold futures for August delivery on the Comex in New York rose as much as 1.8% to $1,454.40 an ounce on Friday, the highest for a most-active contract in six years. Prices are heading for a fourth weekly gain in five.If the rally does persist, retail investors who have largely been on the sidelines may soon join in, according to Hayes of the Perth Mint.“It takes a little while for a rally like this to really feed into mainstream society,” Hayes said in an interview by phone. “If it is sustainable it will undoubtedly spark additional interest not only from institutions but from the average investor in the street.”(Updates with gold price in third-from-last paragraph.)To contact the reporters on this story: Joe Richter in New York at firstname.lastname@example.org;Justina Vasquez in New York at email@example.comTo contact the editors responsible for this story: Luzi Ann Javier at firstname.lastname@example.org, Joe RichterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Billionaire investor Ray Dalio made headlines this week by asserting in a 6,000-word essay that gold should become a key part of every portfolio. Investors in Canadian gold stocks are way ahead of him.Gold producers have been on a tear in Canada, keeping the benchmark S&P/TSX Composite Index near its all-time high. Companies, including Eldorado Gold Corp., Alacer Gold Corp. and Semafo Inc. make up half the index’s biggest gainers this year, while nine of the top 10 in the past month have been gold or silver producers. The gold firms have taken the reins from technology and pot stocks, which were the drivers earlier this year.The S&P/TSX had been rising out of an ugly trough reached in December, in part thanks to Shopify Inc.’s gravity-defying rally and several high-flying pot stocks. The gauge rose 12% from beginning of the year though the end of May, outperforming the S&P 500.During those five months, technology and pot/healthcare were the best-performing sectors, rising about 39% and 31%, respectively. Meanwhile, the materials sector had been languishing at the bottom of the 11-group list.That all began to change in April. The broader market started to turn lower as trade-war jitters percolated and economic-growth concerns rose. Those issues, plus strengthening dovish signals from the U.S. Federal Reserve, nudged investors to gold as a haven.By June, the precious metal was on a tear, trading near six-year highs, benefiting miners and pushing up the S&P/TSX. Helped by the rally in gold and silver mining stocks, materials became the best-performing sector from June 1 through Thursday, rising 17%, while cannabis/healthcare became the worst, falling 6.6%.To be sure, technology and pot are still the Canadian index’s top two sectors this year. And materials stocks, which were the worst performers year-to-date until the end of May, are now among the top five.There may be more room for gold to rise. Industry analysts are jumping on the bandwagon, according to Bloomberg data, which shows that, on average, industry experts are predicting that gold and silver prices will remain elevated heading into at least next year.To contact the reporter on this story: Aoyon Ashraf in Toronto at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Steven Frank, David ScanlanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
When Simone Manuel was growing up, people laughed at her for wanting to become a swimmer, telling her to take up basketball or track and field instead. Now an Olympic and world champion, the 22-year-old American is embracing her status as a trailblazer and role model for black athletes and African-American children who face similar racial stereo-typing. "People told me I couldn't be a swimmer, that I should've been in a different sport," she told AFP in an interview on Friday before the start of the world swimming championships in South Korea.
Barrick Gold Corp has struck a deal to buy out fellow shareholders in Acacia Mining after raising its offer to end a two-month standoff between the world's second biggest gold miner and its African unit. The deal was announced hours before a regulatory deadline for Barrick to make a firm bid or walk away. Barrick spun off Acacia in 2010, but still owns a 64% stake and said earlier this year it wanted to take back full control as it sought to resolve a protracted dispute between Acacia and Tanzania over valuable mining assets.
Barrick Gold Corp has agreed to buy out fellow shareholders in Acacia Mining in a deal that values the firm at 951 million pounds, ending a two-month standoff between the world's second biggest gold miner and its Africa unit. Barrick had spun off Acacia into a separate company in 2010, but owns about 64% of the company. The deal will offer Acacia shareholders, as well as special dividends on Acacia exploration properties and deferred cash consideration dividends, 0.168 Barrick shares per Acacia share, implying a value of about 232 pence per share, the miner said.
Spot gold shed 0.6% to $1,437.51 by 1151 GMT, having touched its highest since early May 2013 at $1,452.60. Investors are holding their breath going into the end of the week and the seasonally slow summer period," said Mitsubishi analyst Jonathan Butler. In a speech interpreted as a strong argument in favour of quick monetary action, New York Fed President John Williams on Thursday said that policymakers could not wait for economic disaster to hit before adding stimulus.
Investing.com - Gold prices gained on Friday amid intensifying tension in the Middle East and rising expectations of aggressive Fed easing.
Why a master income investor just made a recommendation based on an asset that yields zeroCapital gains are wonderful, but most of us have a soft spot for an investment paying a juicy yield.After all, that big capital gain in your portfolio is unrealized. Unless you're willing to sell the asset, you can't use your gains for a new car, a vacation, or perhaps a down-payment on a home.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut a great income investment that deposits hundreds or thousands of dollars into your account every few months? That can make a real difference in your day-to-day life.So, how would you like a basket of high-quality investments yielding 8.5%?That was the average yield of Neil George's 10 highest-yielding stocks, bonds, and funds over the first half of 2019 from his Profitable Investing portfolios. Topping that list were MFA Financial at an 11.1% yield, and Hercules Capital at 10.06%.These lofty yields from quality investments aren't easy to find in today's low-rate environment. For context, the current yield of the S&P 500 is 1.87%, which isn't all that far off its all-time low of 1.11%, set back in August 2000. Source: multpl.comI'm browsing Neil's portfolio as I write, noticing forward yields of 5.73% … 6.09% … 7.80% … 8.85% … 9.85% … 11.07% … Bottom line -- Neil is a master income investor, able to find high-quality yield even in tough, yield-starved markets.That's why one of his most recent recommendations jarred me …You see, Neil just recommended something that most people would never expect from an income investor. That's because the underlying asset yields … nothing. It's about as far from an income investment as you can get.I'm talking about gold.Yet, somehow, a gold-related investment just found its way into Neil's portfolio.Personally, I believe there's a strong case to be made for a longer-term rally from the precious metal. But when even an income investor is interested, that jumps out at me.So, today, let's look at gold through Neil's eyes. On Tuesday, he shared his thoughts on the tailwinds behind gold with his Profitable Investing subscribers. Given his income and interest rate-oriented background, it's a valuable prism through which to analyze the precious metal.Best of all, I get to reveal which gold-related investment Neil likes. And though gold itself yields nothing, Neil's pick pays a dividend. So, you get exposure to gold's tailwinds while enjoying some mailbox money in the meantime.Let's get into the details.***"I have never recommended gold or gold stocks -- ever -- until last month when I made my initial case for the metal"That's how Neil's most recent Journal update begins.As to why, Neil points toward gold's lack of yield, as well as the costs related to adequately storing the precious metal in a safe, protective place.But then he shifts gears:To justify buying and owning (gold), there have to be good reasons for prices to rise above those costs. And I think there are good reasons right now.As to those reasons, Neil starts by pointing toward the value of the U.S. Dollar. You see, since gold is priced in dollars for U.S. investors, if the dollar increases value -- all things being equal -- fewer dollars are needed to buy the same amount of gold. This puts downward pressure on gold's market price.Of course, the opposite is true as well. If the dollar is weakening, it requires more of them to purchase the same amount of gold. This pushes gold higher.Meanwhile, interest rates also play into this dynamic. Neil echoes a point we've made before in the Digest -- namely, rising interest rates make income investments more attractive than gold, which pays nothing. So, a rising rate environment is a significant headwind for gold.Here again, the opposite dynamic is generally true -- falling interest rates are bullish for gold. That's because lower rates reduce the opportunity cost of picking an income investment instead of the precious metal.Here's Neil on this interplay between the dollar, rates, and gold:The U.S. dollar has been generally stronger against most of the major commercial and financial currencies of the world … The dollar as measured by this index is up by 1.18% over the trailing year, largely with U.S. stock and bond demand, along with higher effective interest rates in short-term investments.But that is coming to an end, as the FOMC has made it clear that the policy has not been justified by inflation in the U.S. It is now likely that the FOMC will be easing and bringing interest rates lower.This should have two impacts on gold.First, lower interest rates in the U.S. mean that the yield advantage of holding dollars versus other currencies will subside, bringing down the U.S. dollar overall. A lower dollar will help the price of gold in dollar terms.Second, lower interest rates in the U.S. will reduce the opportunity costs of holding gold, which will help the price of the metal. ***The gold/dollar chart shows the relationship between interest rates, the dollar, and gold's priceNeil points us toward a chart of gold and the dollar, noting that during last year's FOMC tightening the dollar was stronger while gold was lackluster. That was until the fourth quarter when stocks fell which reduced the opportunity cost of holding gold.Below is a chart from Tuesday's update. Note the inverse relationship between gold and the dollar index -- especially about four weeks ago when gold soared. ***Neil points toward several other bullish tailwinds behind goldAmong them are deteriorating conditions in Europe, which is showing little progress in its core economies and faces many political headwinds. Even better for gold, in key European markets, interest rates are in negative ranges, with depositors paying rather than receiving interest.Beyond the ECB, Japan, Switzerland, Sweden and Denmark have also gone negative.For additional tailwinds, Neil notes China's slowing economy, trade tensions, and political uncertainty here in the U.S. as the 2020 election gets closer (gold tends to perform well during periods of uncertainty). All of this is bullish for the precious metal.***So, how is Neil playing it?He begins by telling us what he didn't want to recommend -- namely, one of the most popular ways to own gold, which is SPDR Gold Shares(GLD). As to why, Neil references its annual operating expense of 40 basis points (0.40%), and the fact it doesn't pay a penny in dividends.Instead, Neil found what he calls a better way to buy and own gold -- one that pays you along the way. What is it?Franco-Nevada Corporation (FNV).Unlike most gold-related investments, Franco isn't a mining company. Instead, it acquires and holds royalty interests from gold producers and owns proceeds from gold mining companies.From Neil:This means that it doesn't have to buy and run mines or deal with the related expenses that bring a whole lot of costs and uncertainty to other gold businesses.It just collects cash from gold production as it streams into the market. If gold goes higher in price, the company makes more revenue. If gold goes down in price, the company makes less, but it still makes money.And it pays its shareholders their cut of the profits from the stream of gold flowing across its books.As I write, FNV's dividend yield is around 1.1%. While that may seem low compared to Neil's Q1/Q2 top-10 average of 8.5%, remember, FNV isn't supposed to be a traditional income investment. Rather, it's a way to get exposure to the gains that are likely in store for gold -- while getting paid along the way.Plus, keep in mind, when gold does well, FNV usually does better.From Neil:Franco-Nevada stock is proving out to be the better way to own gold. Since Sept. 11 of last year to date, FNV has generated a total return of 46.58% against GLD's 17.36% return -- a 168.32% better return.Over the past five years, FNV has outperformed GLD by a total return margin of 897.97%.Leave it to a master income investor to find a way to get paid from a gold-related investment that's simultaneously crushing gold's actual gains.For more on FNV from Neil, or if you're a fan of mailbox money and want to learn more about his other high-yielding income investments, click here. After all, if the Fed is cutting rates in a couple weeks, an average 8.5% yield is going to be hard to come by.In the meantime, keep your eyes on gold. It popped over 1% yesterday, and is back to testing the resistance points of the six-year-highs it made in late June. As I write Thursday morning, it's trading at $1,425.We'll continue to keep you informed.Have a good evening,Jeff RemsburgThe post A Master Income Investor's Surprising Pick appeared first on InvestorPlace.
Gold futures extended their gains into the electronic trading session on Thursday. "News of the U.S. navy shooting down an Iranian drone always adds fuel to the market, but the underlying buying momentum after a break of the $1,425 area has propelled gold back to the next bit challenge" the $1,450 area, said Peter Spina, chief executive officer of GoldSeek.com. He also pointed to speculation in the market that a "large supranational organization" is acquiring all ounces of gold produced in North America, citing a tweet from Roy Sebag, founder of GoldMoney. Traders also saw comments from the New York Fed President John Williams as endorsing an interest-rate cut at the Federal Reserve's policy meeting later this month. The ICE U.S. Dollar Index also declined on the back of the comments, providing support for dollar-denominated gold prices. August gold was at $1,448.40 an ounce in electronic trading. The contract had climbed by $4.80, or 0.3%, to settle at $1,428.10 on Comex. That was the highest finish for a most-active contract since mid-May 2013, according to FactSet data.
(Bloomberg) -- Eurasian Resources Group Sarl, the mining firm backed by the Kazakhstan government, is exploring options for assets in the Democratic Republic of Congo including a potential sale, according to people with knowledge of the matter.China Nonferrous Metal Mining (Group) Co. is among companies interested in the assets, the people said, asking not to be identified as the information is private. Deliberations are at an early stage, and ERG could decide against a sale, they said.Bidders could value the company’s assets at $3 billion to $4 billion while the seller may be seeking $7 billion to $8 billion, the people said. Valuing the assets is difficult because of political risks in the region and volatile metal prices, among other reasons, they said.A representative for ERG declined to comment. China Nonferrous couldn’t be reached for comment.ERG, which mines copper and cobalt in DRC, has been reviewing its investments and has already sold assets valued at about $1 billion, according to its website. The company is a major producer of cobalt, a material used in rechargeable batteries powering iPhones and Tesla cars, though it’s had to grapple with a supply glut and declining prices. Congo produced 72% of the world’s supply of cobalt last year.Read more about cobalt mining in the DRC here.The firm is also developing large-scale investment projects in Central Asia and Africa with the Chinese government as part of the New Silk Road initiative, according to its website.China Nonferrous operates in more than 80 countries and regions globally. It produces so-called nonferrous metals, which contain little or no iron, such as copper, lead and gold. The company also invests in mining projects in Zambia, Mongolia, Myanmar, Thailand and DRC, according to its website.\--With assistance from William Clowes and Elena Mazneva.To contact the reporters on this story: Carol Zhong in Hong Kong at email@example.com;Vinicy Chan in Hong Kong at firstname.lastname@example.org;Dinesh Nair in London at email@example.comTo contact the editors responsible for this story: Fion Li at firstname.lastname@example.org, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com - Gold prices hit intraday lows on Thursday after a bout of better-than-expected U.S. data took some of the wind out of hopes for aggressive policy easing from the Federal Reserve.
Mary Anne and Pamela Aden, resource sector experts and editors of The Aden Forecast, selected SPDR Gold Trust (GLD) as a top conservative idea and VanEck Vectors Gold Miners (GDX) as a favorite speculation. The ETFs have risen 11% and 21%, respectively.
Three soldiers have been killed and another seriously injured in an operation to destroy an illegal gold mine in French Guiana, France's Armed Forces Minister Florence Parly said Thursday. The soldiers, aged between 27 and 31, were "overcome by toxic fumes at the end of a tunnel" as they prepared to blow up the mine in a forest in the French territory on the northeast coast of South America on Wednesday, she said in a statement. Five other soldiers who were with them are in hospital, with one in a "serious condition".
Investing.com - Oil prices rose on Thursday in Asia after data showing U.S. crude inventories fell more than expected last week.
U.S. lawmakers repeatedly pressed Facebook's top blockchain exec to halt development of the Libra cryptocurrency in Tuesday's hearing.