|Bid||0.00 x 1000|
|Ask||0.00 x 1000|
|Day's Range||112.44 - 113.10|
|52 Week Range||111.06 - 129.51|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.40%|
Gold prices haven’t been able to catch a break even as geopolitical concerns have become more pronounced. On August 15, gold prices fell to a 19-month low of $1,173 per ounce as the US dollar continued its winning streak. The precious metal appears to have lost some of its safe-haven appeal.
What Could Drive Newmont Mining Stock in the Rest of 2018? Investors are usually interested in the company’s FCF (free cash flow) progression, as it enables miners (GDX)(RING) to optimize their financial leverage, invest in projects supporting long-term value, and provide shareholder returns. In this context, we’ll look at Newmont Mining’s (NEM) FCF generation in 2018 and its future capability to generate cash.
Governments can sometimes be at odds with their central banks, especially when the central banks are on a tightening spree. In an interview with Reuters, President Trump said that he’s “not thrilled” with rising interest rates. As Trump looks at ways to contain the US trade deficit, a stronger US dollar could spoil the party.
Along with gold, gold miner stocks (GDX) (NUGT) are also seeing a lot of selling pressure lately. Gold equities are essentially a leveraged play on gold prices and as such, they usually move in the direction of gold prices with greater intensity. On August 15, the VanEck Vectors Gold Miners ETF (GDX) has lost 20.0% of its value YTD, almost double the losses seen by the SPDR Gold Shares ETF (GLD).
The current crisis started when Turkish lira plunged and started to pressure other emerging market (EEM) currencies. While the outright sell-off in emerging market currencies has stopped, investors are still worried about the contagion spreading to these countries. The US (SPY)(IVV) interest rates are already moving higher with the Federal Reserve on the path of even more hikes in the quarters ahead.
Gold prices (GLD) haven’t been able to catch a break even as geopolitical concerns become more pronounced. On August 15, gold prices fell to a 19-month low of $1,173 per ounce as the US dollar continued its winning streak. Despite the trade war concerns, the political and economic tensions in the EU (European Union) (HEDJ), and Turkey’s (TUR) latest currency and economic crisis, gold has behaved like any other risk asset and not gained any bids.
Like positions in the SPDR Gold Shares ETF (GLD), institutional holdings in the VanEck Vectors Gold Miners ETF (GDX) fell sequentially during the second quarter. We discussed in the previous article how gold prices fell in Q2 2018. While gold miners are usually a leveraged play on gold prices, they gained 1.5% on average in the second quarter as gold fell.
Yes, the S&P 500 (SPY) is still up 6% for the year, but stocks are all over the place. Since early May, the SOX (Semiconductor Index) is barely up, while Consumer Staples are up 10%. Are tariffs good? Not for US Steel (X) or Alcoa (AA) and certainly not for China. Chinese equities (FXI) are down 20-25% across the board. Is Turkey the problem? Eh, maybe eventually. But usually macro scares move to the background quickly. Turkey is not in our top 30 trading partners. Is it rates? Maybe. Maybe inversion is more the issues. Real estate is bad. Look at the comments from Redfin (RDFN). What about commodities? Very bad also. Oil (USO) down, gold (GLD) down, copper down (CPX). At Market Realist, we have been talking about the upcoming earnings cliff since April. This week we really saw that start to play out – specifically with semiconductor names. Our Market Realist Pro subscribers know that we put Lam Research (LRCX) on our “avoid” list in July. Today, after Applied Materials’ (AMAT) earnings, that stock is now down $25 since we called it out. Micron has gotten crushed to $46 from when we said avoid it in May.
To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a step back and looks at how various asset classes across the globe are performing. The weekly performance is from last Thursday’s open to this week’s Wednesday close.
Gold prices and the related exchange traded funds are in a tailspin. Over the past month, the SPDR Gold Shares (NYSE: GLD ), the world's largest gold ETF, is down almost 4 percent. That is not preventing ...
US retail sales rose 0.5% sequentially in July against expectations of just a 0.1% increase. On an annual basis, the retail sales in July grew by 6.4%. The core retail sales (XRT), which exclude automobiles, gasoline, building materials, and food services, grew by 0.5% in July.
Mr. Market keeps working on moving on from Turkey worries, and earnings today from the likes of Macy’s and Cisco ought to help. Geopolitical angst hasn’t been doing that much for gold, and today’s call suggests the metal’s future isn’t so bright.
Usually, equity and commodity prices share a positive correlation. However, gold (GLD) is an obvious exception. The correlation between equities and commodities isn’t hard to explain. Commodities, like equities, tend to do well when demand is strong during periods of high economic growth. Commodities are weak in risk-off environments. Equity markets also fall during such periods.
As it is global stocks are feeling the pinch of escalating trade tensions between the United States and China, and now the collapse in Turkish lira has amplified the concerns. This is especially true as Turkish lira is in a free-fall territory, nosediving as much as 11% against the dollar in early trading today after plummeting more than 20% on Friday.Source: Shutterstock
Gold has been "out of style" in recent months. Sentiment readings and positioning in the futures markets appear to be at an extreme. The Dollar Index has made a new high for its recent move up. Is it all all over for gold or are we looking at an oversold extreme that could produce a trade-able rally? Let's see if we can separate some usable information from the dross.
As we’ve discussed previously in this series, the SPDR Gold Trust ETF (GLD) has fallen ~8.0% year-to-date and ~11.0% from its April peak. Historically, gold prices have declined in the summer months, only to climb in August onward due to the seasonal pattern of demand for gold. Physical gold demand from Asian countries such as India supports its price after that.
Usually, gold (GLD) is considered to be a “safe-haven asset” and gains due to economic or political turmoil. The latest evidence is Turkey’s economic and currency crisis. On August 13, gold prices (IAU) fell to 17-month lows despite the raging crisis in Turkey, which also seems to be spreading to other regions.
Goldcorp (GG) reported its Q2 2018 earnings on July 25, 2018, after the market closed and held its earnings conference call on July 26. It reported adjusted EPS of $0.02, which missed the consensus estimate by $0.05. Its revenues of $793 million missed the analyst estimate by ~9%. Lower production and foreign exchange currency costs were mainly responsible for the miss. The company reported that it lost $0.20 per share due to deferred tax balances. Goldcorp also missed analysts’ expectations for its Q1 2018 earnings.
The budget balance is the difference between what a country’s government garners from taxes and other sources and what it spends. The US (SPY)(IVT) budget deficit is creeping up. The administration expects annual budget deficits to rise ~$100.0 billion more than what was previously forecast for each of the next three years.
The US consumer price index (or CPI) for July rose 0.2% sequentially and 2.9% over the last 12 months. The core CPI, which excludes the volatile food and energy components, rose by 2.4% in the 12 months to July, which was the largest increase in core CPI since September 2008. In June, core CPI rose by 2.3%.
The demand for gold in India (INDA) fell 7.0% in the second quarter, mainly due to stronger equity markets and higher gold prices measured in rupees. This event caused local gold prices to rise, even with the price decline measured in US dollars.
Yahoo Finance's Jared Blikre joins Seana Smith from the floor of the New York Stock Exchange to discuss the latest market moves.