|Bid||0.00 x 900|
|Ask||0.00 x 900|
|Day's Range||45.33 - 46.16|
|52 Week Range||37.35 - 51.86|
|PE Ratio (TTM)||50.15|
|Forward Dividend & Yield||0.44 (0.95%)|
|1y Target Est||N/A|
The Fed has hinted that there could be two more interest rate hikes this year, for a total of four hikes in 2018. Investors are closely watching non-farm payroll data, which indicates the overall economy’s potential. Inflation meeting its targeted 2% is also among the Fed’s considerations.
Gold Stayed Weak in the First Half of 2018—Will Its Year Improve? Kinross Gold (KGC) stock has been the worst performer among those we’re discussing in this series. While the company’s operational performance has been going according to plan, there are variables companies can’t control, and it’s one of those uncontrollable variables to which Kinross stock has fallen prey.
Year-to-date, Yamana Gold (AUY) has underperformed the VanEck Vectors Gold Miners ETF (GDX), while Agnico Eagle Mines (AEM) has outperformed it. In the first six months of the year, AUY has fallen 7.1%, while AEM has fallen 0.8%. AUY and AEM stocks seem to have corrected course in the second quarter, rising 5.1% and 8.9%, respectively, so far compared to the SPDR Gold Shares ETF’s (GLD) fall of 5.7% in the same period. Its EPS were -$0.20, below analysts’ consensus estimate of $0.03.
Gold-mining stocks were on track for their third gain in the past four sessions. The group has outperformed the major indexes since March.
As we know, precious metal mining companies tend to react to the changes in the metals they mine. The fluctuations in these companies are more dependent on metals than the broader equity markets.
After witnessing a rebound on Friday, June 29, precious metals fell again on Monday, July 2. Its RSI (relative strength index) level has dropped again to 22. Large speculators decreased their bullish net positions in gold futures, according to CFTC (Commodity Futures Trading Commission) data released on Friday.
Stocks like Agnico Eagle Mines Ltd. (TSX:AEM)(NYSE:AEM) could face volatility ahead of key meetings between North and South Korea and the United States.
Agnico Eagle (AEM) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Gold prices rebounded on Thursday, May 24, and futures contracts for June delivery rose 0.5% from the previous day’s close of $1,296.2 an ounce. Spot gold entered the $1,300 territory as the US dollar got weak. Adding to the global tensions, Turkey (TUR) was in focus yesterday with its currency, the lira, dropping almost 2% after a huge emergency interest rate hike failed to ameliorate its problems.
Will Gold Be an Inflation Hedge or Tumble on the Fed's Decisions? As we’ve been discussing in this series, gold tends to influence the movements of precious metals miners. Gold also tends to dominate the precious metals: silver, platinum, and palladium are known to closely track its movements.
Eldorado Gold (EGO) stock suffered a great deal in 2017 due to the standoff with the Greek government and some technical issues at its Turkey mines. The VanEck Vectors Gold Miners ETF (GDX) and the SPDR Gold Shares (GLD) fell 3.9% and 0.9%, respectively, YTD. Agnico Eagle Mines (AEM), Yamana Gold (AUY), and IAMGOLD (IAG) returned -7.2%, -8.0%, and 3.3%, respectively.
Gold prices dropped to a five-month low of $1,281.80 and closed at $1,283.30 per ounce yesterday, recording a one-day loss of 0.6% and a one-month loss of 3.3%. Silver joined the slump, dropping 0.8% to end the day at $16.30 per ounce, and platinum followed, falling 0.4% to end the day at $874 per ounce. Palladium was the only precious metal to see strength on Monday, rising 0.5% and ending the day at $960.20 per ounce.
In this part of the series, we’ll analyze the correlation of the mining stocks to gold. Gold is the most dominant of the four precious metals, and silver, platinum, and palladium are known to closely track the movement in gold. Also, precious metals, though they belong to the equity segment of the market, are more dependent on where precious metals move, especially gold.
Hedge funds increased their net positions in the SPDR Gold Shares ETF (GLD) during the first quarter. Gold miners haven’t kept the pace with broader equities and gold prices. In Can Gold Stocks Catch Up to Broader Equities and Gold Prices? we’ve highlighted what could help these miners catch up.
US ten-year Treasury note yields (IEF) hit a high mark of approximately 3.1% today—a record since July 2011. Yesterday was also an up-day for US yields. The two-year Treasury note yield (SHY)(GOVT) hit a new multiyear high of approximately 2.6%—its highest level since August 11, 2008.
Markets were full of geopolitical tensions in April, boosting precious metals and miners’ stock prices. However, the US dollar later strengthened and the market unrest subsided, impacting precious metals and mining stocks.
When analyzing precious metals and precious metal mining companies, it’s essential to analyze the relationship between precious metals. There have been considerable ups and downs in precious metals since the beginning of 2018. Year-to-date, gold has risen 1.1%, and silver has fallen 2.2%.
Its strong execution and operational performance have made it one of the best-managed gold companies, which also contributes to the significant premium to its peers. Eldorado Gold’s (EGO) and New Gold’s (NGD) forward multiples had been at significant premiums to their peers. Although Eldorado Gold has had several ongoing issues at its mines in Greece and Turkey, New Gold stock was pressured by delays and cost escalations at its Rainy River project.
Following the adage "sell in May and go away" is rarely profitable, particularly for defensive stocks like Lassonde Industries Inc. (TSX.LAS.A).
The four precious metals have revived compared to their previous losses over the past five trading days. However, the revival of the US dollar has had a negative impact on precious metals and mining stocks during the past few weeks. The settling of the market’s unrest could have also caused a withdrawal of haven bids.
Precious metal mining companies typically follow precious metals. Precious metals seem to be in the doldrums over the strength of the US dollar and the Federal Reserve’s decision to raise interest rates several more times this year. The recent slump in the 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