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Gold Indicators Still Point to Pressure on Gold Prices (Part 1 of 12) Gold price performance
Gold prices are holding more or less steady in April. The SPDR Gold Trust ETF (GLD), which tracks the movement of gold prices, was trading at $115.43 on April 15, almost flat when compared with the April 1 value of $115.60. However, there has been a lot of sideways movement in the gold market.
The Market Vectors Gold Miners ETF (GDX), which tracks the movement of large and intermediate gold stocks, was up 4% in the first half of April.
Gold indicators
Gold prices are impacted by a host of variables. In this series, we’ll look at factors that investors can track to get a sense of the direction of gold prices. Investors usually view gold as an inflation hedge. As a result, gold prices are influenced by the following related factors:
- the macroeconomic outlook for the United States and other world economies
- the performance of alternative assets such as equities, bonds, and the US dollar
- interest rates
- inflation
We’ll also look at the impact of US data on the dollar and gold prices, and we’ll look at the influence of international data. Then we’ll discuss factors such as the US labor market, inflation, and inflation expectations. These are the most important considerations the Fed reviews before deciding on the quantum and timing of rate hikes. The timing of the Fed rate hike expectation has been the single most important variable impacting gold prices lately.
Get a holistic view
Most of these indicators are published monthly, while others are published weekly and quarterly. Although strongly correlated, these indicators are subject to divergences and short-term statistical noise. The best approach to getting a full picture is to look at these indicators as a whole rather than individually.
These indicators should point you in the same direction as gold prices. They’ll also suggest movements in the share prices of companies such as Goldcorp (GG), Royal Gold (RGLD), Silver Wheaton Corp. (SLW), and Kinross Gold Corporation (KGC). Combined, these companies make up 19.7% of GDX.
The iShares US Basic Materials ETF (IYM) is also a good way to invest in US basic materials stocks. RGLD forms 0.69% of its holdings.
Continue to Part 2 Browse this series on Market Realist:
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Royal Gold Inc.
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PRODUCER |
CODE : RGLD |
ISIN : US7802871084 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Royal Gold is based in United states of america. Royal Gold produces gold, copper, lead, silver and zinc in Argentina, in Bolivia, in Burkina Faso, in Canada, in Chile, in Guinea, in Mexico, in Nicaragua and in USA, develops copper, gold, lead, silver and zinc in Australia, in Burkina Faso, in Canada and in Chile, and holds various exploration projects in Argentina, in Bulgaria, in Canada and in Finland. Its main assets in production are BALD MOUNTAIN in USA, LIMON, LEEVILLE MINING COMPLEX and GOLDSTRIKE OPEN PIT in Nicaragua, DON MARIO (CERRO PELADO) and ROBINSON (NEVADA) in Bolivia, EL CHANATE, PEÑASQUITO, WHARF, MARIGOLD, DOLORES MINE, MULATOS MINE -ESTRELLA and GOLDSTRIKE UNDERGROUND in Mexico, SIGUIRI in Guinea, TAPARKO in Burkina Faso, MARTHA MINE in Argentina, ANDACOLLO HYPOGENE, TOQUI and ANDACOLLO in Chile and WILLIAMS, TWIN CREEKS, PIPELINE MINING COMPLEX and TROY in Canada, its main assets in development are GOLD HILL and PASCUA LAMA in Chile, HOLT MINE & MILL and PINE COVE (MINGS BIGHT) in Canada, BALCOOMA in Australia and BOUROUM in Burkina Faso and its main exploration properties are CANADIAN MALARTIC (QUEBEC), GOLDSTRIPE WILLA, MANHATTAN (WHITE CAPS) and CAMP BIRD MINE in Canada. Royal Gold is listed in Canada, in Germany and in United States of America. Its market capitalisation is US$ 8.0 billions as of today (€ 7.4 billions). Its stock quote reached its lowest recent point on February 28, 1992 at US$ 0.03, and its highest recent level on June 17, 2024 at US$ 121.64. Royal Gold has 65 455 293 shares outstanding. |