|Bid||140.27 x 3100|
|Ask||140.29 x 3200|
|Day's Range||140.06 - 141.99|
|52 Week Range||111.85 - 146.82|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||-0.03|
|Expense Ratio (net)||0.40%|
The SPDR Gold Shares (GLD) and rival gold ETFs have stellar performers in the commodities space there with plenty of market observers rushing to back bullion. Gold was one of the best-performing assets last month, strengthening 8% and touching its highest level since April 2013 after President Donald Trump escalated the trade war and announced additional tariffs on Chinese imports. “Capital Economics in a note says all the drivers for the rally in the gold price – weakening global growth, safe-haven demand and low interest rates – are now baked into the price,” reports Frik Els for Mining.com.
Gold is rare and people love it, so its price should always go up, right? But SPDR Gold Shares (NYSEARCA:GLD) has had an extended run that should slowly start to become less intense. So today's trade is GLD stock. The argument is not that it rose too much, because it still trails the S&P 500 year-to-date. The problem is that with the steepness of its wedge, its chart is vulnerable to dips.Source: Shutterstock This is nothing personal against the shiny metal, but nothing goes up in a straight line forever -- although the recent run in GLD, iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) and iShares Silver Trust (NYSEARCA:SLV) was insane. Global investors chased those three up partly as a safe haven trade from geopolitical risk, and also because of the popular TINA acronym.Consensus is that there "there is no alternative" to buying U.S. Treasurys when global bonds yield negative rates. Not many are willing to buy investment vehicles that advertise guaranteed losses. So they buy U.S. bonds, gold and silver instead. This means GLD came along for the ride.InvestorPlace - Stock Market News, Stock Advice & Trading Tips There is Danger in Those Golden GLD Charts.There is no way I can quantify the value of gold. The stuff is in high demand and people love it. The only reason it has any value is because we say so. Furthermore, it is hard to extract and getting even rarer. Clearly the price should go up indefinitely.But the modern Wall Street is more predictable than in the past. These days machines do most of the trading, so the chart technicals have a lot of say. As bullish as gold story's is, GLD stock should correct. I am not calling for a complete collapse, but there are levels that need revisiting before any rally can proceed. * 7 Discount Retail Stocks to Buy for a Recession During the 2011 rally, experts called for gold prices to hit $2,200 per ounce. That marked the top and started a four-year correction. Furthermore, this rally merely brings gold to about the 50% retracement level of that correction. While I don't want to predict similar doom here, I expect GLD stock to revisit lower levels to build a better chart.Before you label me a perma-bear, I assure you that I prefer trading upside potential as it makes for happier and more positive attitudes. But the dip would give GLD the chance to build a better base for what ever future target it wants.A spike straight up leaves weak hands in control of GLD. So then at the sign of any trouble, the bulls become gutless and panic out of their positions. That is when trap doors open -- and the exit doors are never large enough to accommodate an orderly exit.In September, GLD stock corrected about 5% and is now is trying to shake it off. The short paid, but it is not yet clear that there is reason to stop shorting it here. If you are already short GLD, you can stay in it with proper stops. The Bottom Line on GLDFrom here, I expect GLD to head lower because it needs to retest $139 and $136 per share. This next statement will probably anger the gold bulls, but GLD stock should eventually fill the gap near $128 per share.In early June, the gold trade caught fire near $127. GLD rallied 16% from there with no retracement. Then September's dip came. There will be a fight between buyers and sellers near $140 for the control of the price action, so I expect a stall there.Next week is important for GLD. The Federal Reserve will make its decision on rates. If the Fed doesn't disappoint Wall Street then the markets will make new highs and it will be hard for gold bulls to maintain the rally. Conversely, if Fed Chairman Jerome Powell causes another equity market dip, then shorting GLD stock will be difficult.Since I can't control the headlines, I revert to charts to make decisions. The SPDR Gold Shares chart suggests that staying short here until the $140-zone fight ends is the right thing to do.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post Stay Short in SPDR Gold Shares ETF appeared first on InvestorPlace.
The SPDR S&P 500 (NYSEARCA:SPY) hit new all-time highs on Thursday. Who would have predicted that for the stock market today?Not many were looking for such a robust rally to take place over the past few trading sessions. But InvestorPlace readers were ready. They knew that the stock market was trading in a well-defined range throughout the month of August and they knew when that range resolved to the upside.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOnce resistance gave way and we saw follow through from the bulls, that's when it was clear new highs were possible. In fact, we wrote: "Above resistance could send the S&P 500 back to 3,000, while a move below support likely brings up a test of the 200-day moving average."So what's causing this rally anyway? Markets liked the de-escalating tone between China and the U.S., even though there some reports say the trade war will not likely be resolved any time soon. More Quantitative Easing, Please?For those looking for more quantitative easing from the Federal Reserve, don't hold your breath. The Fed is scheduled to make its rate decision next week on Wednesday, Sept. 18. As it currently stands, the Fed Funds Rate is pricing in an 88.8% probability of a 25 basis point cut next week. The other 11.2% probability has the Fed keeping rates unchanged.Put simply, the U.S. is not in the economic position -- either with low growth or negative interest rates -- to warrant more stimulus. But the European Union is. * 10 Battered Tech Stocks to Buy Now The European Central Bank announced a 10-basis-point cut in its deposit rate to -0.5%, in-line with expectations. The ECB also announced that it will restart its QE program to the tune of $20 billion per month beginning Nov. 1. While ECB president Mario Draghi says there's only a low chance chance of an E.U. recession, those odds have increased.QE should be a boost, but it's concerning that it's needed after a near-decade of various policies. Movers in the Stock Market TodayIt was an exciting day in the stock market today, if not just because equities are flirting with their all-time highs. However, not all assets are moving favorably.While gold prices -- and the SPDR Gold Shares (NYSEARCA:GLD) -- closed higher on the day, GLD finished well off its morning highs. The can be said for bonds too, via the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT). The fall in bonds helped pave the way for bank stocks to continue their rally on Thursday, even as they approach resistance.The Top Stock Trades column took a closer look at the bank stocks earlier today.What else was moving?Aurora Cannabis (NYSE:ACB) fell roughly 10% and hovered near its session lows in the stock market today. The decline came after the company reported its quarterly results, missing revenue expectations and showing margin pressure. The woes of the cannabis space continue.Shares of General Electric (NYSE:GE) fell 1.2%, but Baker Hughes (NYSE:BHGE) was making waves after the former became a seller of the latter.BHGE opened notably lower on the day and fell to $21.36. However, it finished higher by 1.5% at $22.63 despite GE announcing it will cut its stake from 50.3% to roughly 39.5% as it looks to raise capital.The IPO market remains a mixed bag, with the latest shake-up coming from SmileDirectClub (NASDAQ:SDC). Shares priced at $23, above the $19-$22 range. But that didn't please investors, as shares tumbled 27.5% in their debut. Ouch. Heard on the StreetShares of Activision Blizzard (NASDAQ:ATVI) got off to a hot start in the stock market today. However, the stock only managed to climb 1% by the time the market closed. That's despite Nomura analysts upgrading the stock to "buy" and raising their price target from $49 all the way to $64. The target implies more than 16% upside from Wednesday's closing price.Wells Fargo analysts are ringing the bell on Caterpillar (NYSE:CAT) and Deere (NYSE:DE). They downgraded both stocks from "outperform" to "market perform," assigning price targets of $170 and $143, respectively.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Stock Market Today: Should Investors Expect More Quantitative Easing?Â appeared first on InvestorPlace.
As more investors shift to a risk-off mindset and embrace gold, China’s influence is growing on the global market for the precious metal. Acknowledging China’s increasing presence in the world gold market, the CME Group, a leading futures and derivatives exchange, is expanding its market offerings with the launch of two new gold futures products in October.
Mario Draghi Expected to Rage Against the Dying of the Euro This week will be European Central Bank President Mario Draghi’s last opportunity to print the Old World into prosperity. Monetary policy wonks are almost universally expecting him to push overnight lending rates in the Eurozone even further into negative territory, despite the fact that […]The post Market Morning: Draghi's Final Act, Brexit Saga Continues, Saudis Get New Energy Guy, China Buys Gold appeared first on Market Exclusive.
In the last 12 months, Kinross Gold Corporation (NYSE:KGC) stock has surged by more than 80%. The upside in KGC stock has been backed by strong fundamental developments. Comparatively, the VanEck Vectors Junior Gold Miners ETF (NYSEArca:GDXJ) is up 52% in the same period. Even after the sharp rally, I believe that the uptrend has just started for KGC.Source: Shutterstock At this point, I am recommending investors accumulate positions in Kinross Gold with an initial investment horizon of 12-24 months.My recommendation on KGC stock is predicated on both industry and company specific factors that back my bullish view. Kinross stock, at a 6.34% weighting, is the largest of 67 holdings in the GDXJ mining stocks portfolio.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Bullish on GoldIt is important to understand that movement in gold mining stocks is closely linked to trend in gold prices. It is therefore important to discuss the likely trend for the precious metal before talking about company specific factors.Gold is currently trading at $1,536 and is higher by 20% for year-to-date 2019. The break-out in gold prices has come after nearly five years of sideways-to-lower movement. I believe this was a consolidation zone for gold. Levels of $1,200 to $1,300 an ounce can be considered as a region of strong technical support.I am of the opinion that gold will sustain at higher levels and can potentially break all-time highs in the next 12-24 months.The most important reason for this view is global economic weakness. For August 2019, the manufacturing sector in the United States contracted for the first time in three years. China has also reported lowest GDP growth in almost three decades. Concerns of weak growth and potential recession loom at large even for Europe. Amidst these economic concerns and the ongoing trade war, the precious metal is likely to outperform. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off Consider the following three factors:The U.S. is already pursuing expansionary monetary policy and as money supply increases, the dollar is likely to trend lower. This is positive for gold.With economic concerns, there is increasing risk-off trade and investors seek to go overweight on Treasuries and gold. The precious metal is likely to see higher investment demand.Central banks of Russia and China have been aggressively buying gold to diversify reserves. With weak economic growth, expansionary monetary policies and geo-political tensions, demand for gold from central banks will sustain.In sum, the global economic scenario is perfect for gold to trend higher after prolonged consolidation. Kinross Gold stock will move in-sync with gold prices. EBITDA Margin Expansion and Cash Flow GrowthFor the second quarter of 2019, KGC reported average realized gold price of $1,307 an ounce. For the same period, the all-in-sustaining-cost (AISC) was $918 an ounce. This translated into an adjusted operating cash flow of $287.7 million for the quarter.With gold already at $1,530 an ounce, the realized price will significantly increase in the coming quarters with the AISC remaining largely the same. The positive implication is EBITDA margin expansion and growth in operating cash flows.If gold sustains above $1,500 an ounce (very likely), annualized operating cash flow can be in the region of $1.5 to $1.8 billion. As Kinross Gold Corporation generates positive free cash flows, the stock is likely to trend higher.From the perspective of AISC, Kinross has agreed to acquire Chulbatkan, a development project. The asset has an indicated resource of approximately 3.9 million ounces of gold. Importantly, the company expects AISC for the project at $550 an ounce.Therefore, as the project commences production in the coming years, the company-wide AISC will decline and EBITDA margin expand.As a matter of fact, Kinross has a relatively attractive AISC for American and Russian assets. The AISC for West Africa is higher. I expect inorganic growth to be focused on assets in Russia and the U.S. Strong Fundamentals for Aggressive GrowthAs gold trends higher, it makes more sense to ramp-up production for higher realized gold price. KGC has the advantage of a strong balance sheet to pursue organic and inorganic growth. * 7 Best Tech Stocks to Buy Right Now As of June 2019, the company had total liquidity buffer of $1.9 billion. With likely expansion in free cash flow in the coming quarters, I expect the liquidity to swell and net debt to decline.In addition, I expect stock re-rating if gold continues to trade above $1,500 an ounce. This re-rating expectation is based on potential dividends as free cash flow swells. Final Words on KGC StockKinross Gold Corporation stock has surged in 2019 with gold trending higher, event in the 17.1% gain for the largest physical gold exchange-traded fund, SPDR Gold Trust (NYSEArca:GLD). The company is also on track to meet 2019 guidance on production and that has kept the KGC stock momentum bullish.The key trigger for sustained stock upside is EBITDA margin expansion and cash flow growth in the coming quarters. In addition, I expect relatively aggressive investments to prop-up production growth in 2020 and 2021.The factors discussed make KGC stock an attractive buy even after the sharp rally. A 5% to 10% correction on profit booking is entirely likely and I see that as an opportunity to accumulate the stock.As of this writing, Faisal Humayun did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post Kinross Gold Corporation Stock Seems Ready for a Long-Term Uptrend appeared first on InvestorPlace.
As global bond yields plummeted with some hovering in the negative territory, investors have jumped into precious metals and related ETFs to better safeguard their purchasing power in times of uncertainty. For example, gold has acted as a historical safe-haven play during a low rate environment, with volatile equities and a weak dollar. There are now a number of gold ETFs on the market that investors can choose from, including the SPDR Gold Shares (GLD) , iShares Gold Trust (IAU) , GraniteShares Gold Trust (BAR), Aberdeen Standard Physical Swiss Gold Shares ETF (SGOL) and VanEck Merk Gold Trust (NYSE Arca: OUNZ) .
Gold was one of the best-performing assets last month, strengthening 8% and touching its highest level since April 2013 after President Donald Trump escalated the trade war and announced additional tariffs on Chinese imports. Gold prices have strengthened about 20% this year to $1,564 per ounce. “In August, global gold-backed ETFs and similar products had US$6.0bn of net inflows across all regions, increasing their collective gold holdings by 122t to 2,733t,” said the World Gold Council (WGC) in a note out Thursday.
Hedge funds aren’t what they used to be. They used to be exclusive investment vehicles where wealthy investors could generate double digit alpha with very little correlation to the major market indices. Nowadays most hedge funds don’t deliver uncorrelated returns at all and they generate minuscule returns after fees and expenses. I am not saying […]
Zacks Market Edge Highlights: AngloGold, Barrick Gold, Royal Gold, SPDR Gold and Direxion 3x Gold Miners
Hong Kong's equities and its economy have been struggling over the past few months. If you thought trade tensions between the U.S. and China were high, those were nothing compared to what Hong Kong has been dealing with. Apparently -- and fortunately -- peace in Hong Kong goes a long way in the world, with global equities catching a nice boost. U.S. stocks enjoyed a solid session in the stock market today as well.The SPDR S&P 500 ETF (NYSEARCA:SPY) rose 1.1%, the SPDR Dow Jones Industrial Average (NYSEARCA:DIA) jumped 1% and PowerShares QQQ ETF (NASDAQ:QQQ) climbed 1.4%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAre we in the clear? First, Hong KongThe Hang Seng Index rallied 3.9% on the day -- its best day since 2011 -- after leader Carrie Lam withdrew the controversial extradition bill. The introduction of the bill ignited months of protests and billions around the globe watched the situation unfold. Those protests have intensified in recent weeks, causing many to wonder how it would conclude.Now we know, and that's one less thing to worry about. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off Given the uncertainty that the global economy is in, it's surprising the U.S. and China haven't hammered out a trade deal. The Hong Kong situation seems to be under control and if the trade deal would just come through, investors and business leaders would breathe a sigh of relief.It would also allow everyone to get back to business as usual. And if China and the U.S. are healthy, then almost everyone else is healthy, too. Gold and SilverOn Tuesday we detailed the likeliness of another interest rate cut from the Federal Reserve later this month. The market is fully pricing a cut from the Fed, and that can be seen in more than just forecasts.What does that mean? For one, silver and gold prices have been erupting. The iShares Silver Trust (NYSEARCA:SLV) and the SPDR Gold Shares (NYSEARCA:GLD) both hit new 52-week highs on Wednesday. SLV isn't all that far away from new multi-year highs, while gold is hitting its highest levels since 2013.While both appear overbought in the short term, there are several catalysts pushing them higher. Worries over the economy and increasing uncertainty always gets the blood going for gold bugs. But so too does central bank easing. The Fed cutting interest rates weakens the dollar. Lower rates and a weakening dollar is good for commodities like silver and gold, so it's no surprise we're seeing new highs lately. Movers in the Stock Market TodayAmerican Eagle Outfitters (NYSE:AEO) fell nearly 12% on Wednesday to new 52-week lows despite beating on earnings and revenue estimates, while Coupa (NASDAQ:COUP) rose almost 9% to new highs after crushing estimates and providing robust guidance.Lumber Liquidators (NYSE:LL) closed well off its highs of the day, but still climbed 9% after news of a go-private bid surfaced. Shares were as high as 16% on the day, but were unable to hold onto those gains. The news shouldn't be a complete surprise, as the former CEO took an equity stake in the company last month.Tyson Foods (NYSE:TSN) was once a relative strength leader in this market. However, its 7.8% fall on Wednesday took it off the go-to list for many bulls. Shares slid after the company announced a reduction to its full-year guidance. Heard on the StreetWorld Wrestling Entertainment (NYSE:WWE) was initiated with an "outperform" rating at Evercore ISI. The analyst also assigned a $90 price target to WWE, implying about 30% upside from the prior close. The analyst says the company has a path to "unprecedented growth."Roku (NASDAQ:ROKU) already has a buy-equivalent rating from DA Davidson, but the analysts took it a step further. They raised their $135 to price target to a Street-high $180. Roku is one of InvestorPlace's Top Stock Trades, and after finishing the session near $169, Davidson's rather bullish upgrade only leaves about 6% upside.Activision Blizzard (NASDAQ:ATVI) climbed 4.8% on Wednesday after analysts at BMO Capital Markets upgraded the stock to "outperform." They also gave a big boost to their price target, raising it from $43 to $60. The new target implies over 12% upside despite Wednesday's rally.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post Stock Market Today: Hong Kong Saves the Day appeared first on InvestorPlace.
Investors have plowed into gold ETFs, with holdings in bullion-backed products surging to their highest level in six years over August, in response to the heightened uncertainty and market risks. For example, among the most popular gold-related ETFs, the SPDR Gold Shares (GLD) attracted $2.6 billion in net inflows over August while the iShares Gold Trust (IAU) brought in $894 million and Aberdeen Standard Physical Swiss Gold Shares ETF (SGOL) saw $65 million in inflows, according to ETFdb data. Investors bought a total of about 101.9 metric tons of gold through ETFs last month or about $5 billion in August, the Financial Times reports.
As trade tensions are still alive and kicking, Wall Street could be volatile in September. These funds can offer some cushion to investors in this backdrop.
Will Brexit Happen? We Could Know By the End of the Day Political developments out of the United Kingdom are frothing out faster than radiation out of a quasar as Brexit news reaches a fever pitch with everything happening all at once now. Parliament is back in session today and it will try to force […]The post Market Morning: Brexit At Crossroads, China Threaten Hong Kong, Argentina Collapses, Dorian Dallies appeared first on Market Exclusive.