|Bid||0.00 x 1100|
|Ask||0.00 x 1000|
|Day's Range||7.32 - 7.97|
|52 Week Range||7.22 - 25.76|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.94%|
The CFTC (Commodity Futures Trading Commission) reports the position of major players in the futures market through its COT (Commitment of Traders) report. This report specifies the positioning of various players in the market. The report is released every Friday and shows the open interest recorded on the previous Tuesday.
While Agnico Eagle Mines (AEM) has lost 1.4% YTD (year-to-date) until July 13, its performance is still stronger than many of its peers (RING), including Yamana Gold (AUY), Kinross Gold (KGC), Eldorado Gold (EGO), and New Gold (NGD). It has also outperformed the SPDR Gold Shares ETF (GLD) and the VanEck Vectors Gold Miners ETF (GDX). Agnico Eagle is known to deliver consistent results throughout its cycles.
After underperforming its peers in 2017, Goldcorp (GG) stock has outperformed YTD (year-to-date). It’s also one of the few major gold stocks to have recorded a positive return YTD performance of 3.6% as of July 13.
As has been documented, gold prices have faltered over the past several months. An interesting element in that scenario is that gold miners ETFs, such as the VanEck Vectors Gold Miners ETF (NYSEArca: GDX ), the largest exchange traded fund dedicated to gold mining stocks, have performed less poorly than ETFs focusing on physical gold. GDX is comprised of global gold miners, with a notable tilt toward Canadian and U.S. mining companies.
The CFTC (Commodity Futures Trading Commission) reports the position of major players in the futures market through its COT (Commitment of Traders) report. According to the COT report for the week ended June 26, 2018, money managers were barely net long on gold with just over 4,000 net speculative long contracts. According to Commerzbank, “Short positions, in particular, were built up, which means speculative financial investors are currently betting heavily on falling prices.” For the week ended June 3, money managers kept their positions almost unchanged, which implies the lowest levels of net long positioning since late 2015 when gold prices dipped below $1,050 per ounce.
As we’ve discussed previously in this series, the escalating trade tensions haven’t been able to support gold much in 2018 mainly due to the simultaneous appreciation in the US dollar (USDU), which has capped gold’s gains. While the index for current conditions came in as expected, the sentiment over future business conditions and income prospects declined. Investors should note that consumer spending (XLY) constitutes more than two-thirds of the US economy.
The Federal Reserve released the minutes of its June meeting on July 5. The Fed raised interest rates (TLT) by 25 basis points to 1.75% to 2.0% at its June meeting, the second time in 2018. The committee listed the strong labor market, federal tax and spending policies, and high levels of household business confidence as positive factors supporting US economic growth.
Germany’s chancellor, Angela Merkel, is facing a political crisis as its coalition partner, CSU (Christian Social Union), is opposing her stance on immigration. Seehofer is proposing to block refugees who have registered in another European country to enter Germany. Merkel has until June 28 to strike a deal with her fellow EU (European Union) leaders and satisfy the hardliners at home.
Eldorado Gold (EGO) is one of the few gold stocks that have seen rapidly deteriorating sentiments from analysts in the last year. Currently, only 15% of the 13 Wall Street analysts covering it rate it as a “buy.” This stands in sharp contrast to the ~78% “buy” ratings it had almost a year ago. Eldorado Gold stock suffered a great deal in 2017 due to its standoff with the Greek government and some technical issues at its mines in Turkey.
In this part of the series, we’ll analyze mining stocks’ correlation with gold. Gold dominates the four precious metals, and silver, platinum, and palladium are known to closely track its movement.
Can Goldcorp Continue Its Outperformance after a Weak 1Q18? Goldcorp (GG) achieved AISC (all-in sustaining costs) of $810.00 per ounce in 1Q18, which was 1.3% higher YoY (year-over-year) and 6.9% lower sequentially. In line with its expectations for production, the company expects its AISC to remain at the higher end of the guidance range for 2Q18 as well, which should decrease to come in at the lower end of the range in 2H18.
After underperforming its peers in 2017, Goldcorp’s (GG) stock has outperformed YTD (year-to-date). It’s also one of the few major gold stocks to have recorded a positive return YTD performance of 12.5% as of April 17. In comparison, the VanEck Vectors Gold Miners ETF (GDX) has fallen 1.5% while the iShares Gold Trust (GLD) has gained 3.0%. Peers Barrick Gold (ABX), Kinross Gold (KGC), and Agnico Eagle Mines (AEM) have fallen.
The International Monetary Fund (or IMF) also warned that the downside risks to world financial stability have increased over the past six months. In this context, it added, “Valuations of risky assets are still stretched, with some late-stage credit cycle dynamics emerging, reminiscent of the pre-crisis period.” This it believes could lead to the unwinding of risks, leading to higher risk premiums and repricing of risky assets. The IMF’s view of US equity markets is similar to that of Morgan Stanley’s (MS).
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 ...
The VanEck Vectors Gold Miners ETF (NYSEArca: GDX), the largest exchange traded fund dedicated to gold mining stocks, is essentially flat over the past month, but options traders have recently taken increased ...
After making discretionary cuts on exploration and capital expenditure for many years, gold miners (GDX) (JNUG) have started to refocus on production growth. In the last three years, Newmont Mining (NEM) has built its Merian and Long Canyon mines on time and 20% below budget. The company also sounds confident about finishing its next project, Northwest Exodus, in 2018.
The VanEck Vectors Gold Miners ETF (NYSEArca: GDX), the largest exchange traded fund dedicated to gold mining stocks, is lower by 7% to start 2018, prompting some market observers to say gold miners stocks ...
Amid an uptick in equity market volatility, some traders are seeking refuge in a familiar place: gold. Market participants are also renewing their enthusiasm for some gold miners exchange traded funds ...
The VanEck Vectors Gold Miners ETF (NYSEArca: GDX), the largest exchange traded fund dedicated to gold mining stocks, is once again attracting investors. GDX is comprised of global gold miners, with a ...