32.04 -0.07 (-0.22%)
Pre-Market: 4:06AM EDT
|Bid||31.94 x 1300|
|Ask||32.09 x 1200|
|Day's Range||32.01 - 32.32|
|52 Week Range||29.84 - 37.76|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.54%|
Gold hasn’t exactly glittered over the last few weeks. After hitting a recent high back in March, the uber-popular SPDR Gold Shares (NYSEARCA:GLD) has spent the rest of the year falling, and is now about 8% lower. All in all, a variety of factors and issues have continued to pressure the metal itself and the various gold stocks that produce it.
It seems that every time new, scary headlines emerge, press articles declare that gold no longer serves as a safe haven.2 The Italian political crisis is the latest case in point. The evolving situation in Italy is supportive of gold, as shown by its resilience against a strong move in the U.S. dollar. However, anyone expecting a big move from gold fails to understand the fundamentals of the gold market. Gold responds to genuine global systemic risks. These are risks that can have a negative financial impact on just about everyone personally and/or professionally, i.e. ...
Gold remained resilient in May, as the U.S. dollar strengthened considerably. The U.S. Dollar Index (DXY)1 gained 2.4% and closed the month at its highs for the year, driven by new fears of an Italian debt default and EU breakup. Populist parties from the left and right are attempting to form a coalition government that would likely drive Italy further into debt and to promote initiatives that would enable Italy to exit the euro.
Gold prices have been struggling in recent weeks as a firm U.S. dollar, diminished fears over North Korea and other potential global hot spots, dulled inflation fears, and better returns available in the equity markets have dulled speculation and investment in the precious metal. Both moving averages are typically too long for the futures community that is used to 4-9-18-day signals. In the lower panel is the 20-day price momentum study which shows a bullish divergence with equal lows when prices have made lower lows.
The past few weeks have been surprisingly painful for fans and followers of gold stocks. The SPDR Gold Shares Fund (NYSEARCA:GLD), an ETF that serves as a broad proxy for the overall gold market, has lost more than 6% of its value since peaking in March. There may be an opportunity tucked away in the unlikely, inexplicable weakness in gold stocks.
Gold prices have fallen in recent sessions alongside most other commodities. While the pullback may have spooked some fundamental investors into selling, followers of technical analysis aren't giving up on the precious metal quite yet. In this article, we take a look at the charts of three gold-related exchange-traded funds (ETFs) and try to explain why the recent pullback may actually be the buying opportunity that some have been patiently waiting for.
Though most of the time, mining companies are known to closely track the fluctuations in gold and silver, on May 23, while precious metals fell, most miners stayed afloat.
Usually, precious metals mining companies follow precious metals. Precious metals seem to be in doldrums lately over the strength in the US dollar and the Federal Reserve’s decision to raise interest rates. The recent slump in demand for haven assets has also affected mining stocks.
Kinross Gold (KGC) produced 654,000 gold equivalent ounces in 1Q18, a 2.7% fall YoY (year-over-year). KGC’s 1Q18 production fell YoY mainly for the following reasons: the completion of mining activities at Kettle River–Buckhorn during 2Q17 lower production at Kupol due to grade declines fewer ounces recovered from heap leach pads at Maricunga lower production at Fort Knox due to grade declines
IAMGOLD (IAG) reported significant progress at its operations in its Essakane mine. This mine achieved record production of 109,000 ounces for 1Q18 after the delivery of record annual production of 389,000 ounces in 2017.
Could Newmont Mining Outshine Peers in 2018? Newmont Mining (NEM) has one of the best project pipelines in the sector (GDX)(GDXJ)—it may be stronger than Kinross Gold’s (KGC), Barrick Gold’s (ABX), and AngloGold Ashanti’s (AU). Newmont is poised to overtake Barrick as the world’s largest gold producer in 2018.
Usually, precious metal mining companies follow precious metals. Precious metals seem to be in the doldrums over the strength of the US dollar and the Fed’s decision to raise interest rates. The recent slump in demand for haven assets has also affected mining stocks.
Yamana Gold’s (AUY) valuation multiple has varied widely between 4.3x and 9.8x over the last five years. Valuation multiples signify what investors are willing to pay for a stock based on analyst estimates. Yamana is currently trading at a forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 5.6x. This multiple implies a discount of 13.6% to its intermediate peers (GDXJ), including Agnico Eagle Mines (AEM), Eldorado Gold (EGO), IAMGOLD (IAG), and New Gold (NGD).
There are several reasons for the underperformance: A lack of interest in safe-haven3 investments: While volatility has returned to markets this year, it has yet to reach worrying levels that might motivate investors to hedge their exposure. RBC Capital Markets reports the six-month trailing beta to gold of the VanEck Vectors® Gold Miners ETF has declined to 1.5x, compared to a historical average of 2.0x. The corresponding betas for the VanEck Vectors® Junior Gold Miners ETF is 1.7x and 2.2x, respectively. ...
Physical demand in India has been weak for a couple of years now due to import restrictions, taxation, and currency changes. While we wait for favorable developments from India, the positive trend in prices has been driven by investment demand for gold bullion exchange traded products (ETPs). According to the WGC (World Gold Council), though gold (SGOL) demand in India increased 9% in 2017 to 727 tons, it was much less than the average five-year demand of 810 tons.
Usually, precious metals miners’ shares follow movements in precious metals. Precious metals have risen over the past few days, supporting mining companies.
In this part of our series, we’ll be looking at the correlation of gold to four mining stocks: AngloGold Ashanti (AU), Hecla Mining (HL), Kinross Gold (KGC), and Eldorado Gold (EGO). Mining stocks mostly move with gold prices but not always. Among these four miners, AngloGold has shown the highest correlation to gold, while Eldorado Gold has had a negative correlation to gold on a YTD (year-to-date) basis.
Gold subsequently traded as high as $1,361 an ounce, before giving up most of that gain — including another $14 in trading on Monday of this week alone. Consider the average recommended gold market exposure level among short-term gold timers I monitor (as represented by the Hulbert Gold Newsletter Sentiment Index, or HGNSI).
Usually, precious metal mining companies follow precious metals for price direction. Precious metals increased on Monday, April 16, 2018, as did most mining stocks.
IAMGOLD (IAG) was the best-performing gold stock of 2017, returning 51.4% for the year. It significantly outperformed the VanEck Vectors Gold Miners ETF (GDX) as well as the SPDR Gold Shares (GLD). In 2018, however, the equation has somewhat reversed. Its stock has returned -4.5% year-to-date as of April 17.
At extreme levels, these ratings could even signal a change in direction, so it’s important for investors to track this data. In the senior and intermediate gold miner space (GDX)(GDXJ), analysts are the most bullish on Goldcorp (GG), assigning it 65% “buy” and 5% “sell” ratings.
Usually, precious-metal-mining companies follow precious metals. Precious metals have risen over the past few days, supporting mining companies.
The recent unrest in the markets has had a significant effect on precious metals and mining companies. The US dollar has a prominent role in influencing dollar-denominated precious metals and mining stocks.
The VanEck Vectors Gold Miners ETF (NYSEArca: GDXJ), the second-largest exchange traded fund tracking gold miners equities, is 3.4% over the past week and some market observers believe the small-cap miners ...