|Bid||1.53 x 34100|
|Ask||1.54 x 21500|
|Day's Range||1.51 - 1.54|
|52 Week Range||1.43 - 2.53|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.07 (4.46%)|
|1y Target Est||N/A|
Companies desperate to turn struggling operations around have cut jobs left and right, but the government issued a stern warning against further layoffs.
Iamgold’s Q2 2018 Results Were a Mixed Bag: Is Outlook Better? After achieving record production of 109,000 ounces in the first quarter of 2018, Iamgold’s (IAG) Essakane mine reported weaker production in the second quarter. IAG maintained its guidance for Essakane to produce 380,000–395,000 ounces of gold in 2018.
The gloom in the mining sector is mainly due to the fall in precious metals. Gold, silver, platinum, and palladium have fallen 1.9%, 2.9%, 5.6%, and 0.53%, respectively, on a five-day trailing basis.
Although palladium has been the strongest among the four precious metals over the last month, it has fallen 9.8% year-to-date. Like silver, palladium often depends on industrial sentiment. It sometimes reacts more closely to the broader equity markets than its precious metal status.
Most of the precious metals and their mining companies have witnessed a choppy market in most of 2018, thanks to slumping metal prices. Precious metals are more closely associated with the downturn in these precious metals rather than the overall sentiment of the equity markets.
Zacks Industry Outlook Highlights: Alio Gold, Kirkland Lake Gold, Harmony Gold Mining and NovaGold Resources
Most precious metals mining stocks have fallen in the last few months due to falling gold prices. The US dollar’s revival has also affected precious metals and mining stocks recently.
Ray Dalio Is Holding on to Gold: Are You? After the massive slump in gold prices as US Treasury yields rose, the trading range for gold seems to have corrected lower. The relative strength index for gold has also fallen considerably to 28.2, which suggests that there could soon be a revival in the price of gold.
Gold dipped as dollar gains strength triggered by rise in U.S. Treasury yields. Prospects of a rate hike in June will likely weigh on gold prices.
Lower platinum prices are a major concern for platinum miners in Africa. Platinum, like palladium, is used to cut down carbon monoxide emissions and as a catalyst in vehicle engines. It is also used in diesel-based generators. The platinum market has been in short supply for the last few years, and its deficit is expected to expand to a short supply of 275,000 ounces in 2018.
South African miners have traditionally traded at a discount to their global counterparts (GDX), primarily due to South Africa’s laws, labor concerns, and infrastructure challenges. Among these miners, Gold Fields (GFI) has the highest valuation multiple of 3.8x—a premium of 16.0% to the peer average. Sibanye Gold (SBGL) has a forward multiple of 3.5x—a premium of 7.4% to the peer average.
Gold’s price dipped 0.13% to $1,312.8 per ounce on May 9. The fall in gold was extended for a number of reasons, including a decrease in overall volatility and rising US Treasury rates. We’ll discuss these factors at length in the next few articles.
In April, the market’s unrest had a significant effect on precious metals and miners, leading to increased prices. The US dollar has strengthened recently, which had a negative impact on precious metals and mining stocks. The settling of the market unrest could have also caused a withdrawal of haven bids.
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.
Usually, precious metal mining companies follow precious metals. Precious metals seem to be in the doldrums over the Fed’s decision about moving interest rates and the strength of the US dollar. The recent slump in demand for haven assets also affected the miners.
Recent market unrest had a significant effect on precious metals, which increased. However, the US dollar has strengthened recently, which has had a negative impact on precious metals. The settling of the market unrest could have also caused a withdrawal of haven bids.
The International Monetary Fund (or IMF) issued an update to its world economic outlook on the eve of IMF and World Bank meetings in Washington this week. The IMF warned that a major trade rift between the US and China could threaten global economic growth, which otherwise should rise solidly this year. The agency still maintained its forecast of 3.9% for global economic growth, which would be the fastest rate of growth since 2011.
Geopolitical tensions and lingering concerns over a trade war might reduce investors' appetite for riskier assets and fuel demand for safe-haven gold.
Thieves broke into Harmony Gold Mining Co.’s Kalgold mine Tuesday morning and stole 12 kilograms (386 ounces) of the precious metal, according to spokeswoman Lauren Fourie.
Gold, silver, platinum, and palladium increased 0.33%, 1%, 2.4%, and 4.2%, respectively, on Monday. Gold futures for April expiration were trading at $1,336.3 an ounce on Monday, April 9. The volatility in gold was at 10.4%, while its RSI level was at 59.7. Silver futures for April expiration closed at $16.5 per ounce. Silver’s volatility was at 17.4% and its RSI level was at 58. Platinum and palladium were at $933.9 and $933.5 an ounce, respectively. These two metals are once again at the same level, so it will be interesting to see which one picks up from here.