| Gold Is on a Winning Streak as Global Markets Slump | |
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Gold Is on a Winning Streak as Global Markets Slump (Continued from Prior Part) Equity slump
Gold futures traded on COMEX rose 1.6% on Wednesday, January 20, 2016, as the global stock markets plummeted. Unrest in the stock markets often pushes gold higher. Fears once agin gripped the markets as China’s Shanghai Composite Index fell 1% and Europe’s Stoxx fell 3.2%. The Dow Jones Industrial Average gave up 565 points during the early trade hours on Wednesday but recovered after that. Investors seem to be in panic mode, as they are moving away from equity investments and jumping into safer investment classes like gold and silver.
The below chart shows the inverse relationship between gold and the equity markets, tracked by the S&P 500 performance, over the past 15 years.
Miners rise
Gold futures closed at $1,106.2 per ounce after hitting the high of $1,109.9 per ounce. The implied volatility on gold also rose to 15.8% from the close at 14% levels seen the day before. Gold prices are still trading below their 100-day moving average price, which has risen to $1,108.1 per ounce.
The stock market slump not only buoyed precious metals but also the mining companies that usually follow gold. Mining stocks like Primero Mining (PPP), New Gold (NGD), and Newmont Mining (NEM) surged 5.9%, 8.3%, and 1.5%, respectively, on Wednesday. These three stocks together make up 8.3% of the Market Vectors Gold Miners ETF (GDX). The GDX indicator itself rose 3.1% on the same day but has a five-day-trailing loss of 5.1%. The most famous gold-based ETF, the SPDR Gold Shares (GLD), gained 4% during the past one month and is trading at $105.5 per share.
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New Gold Inc.
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PRODUCER |
CODE : NGD |
ISIN : CA6445351068 |
CUSIP : 644535106 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
New Gold is a gold producing company based in Canada. New Gold produces gold, copper, lead, silver and zinc in Australia and in Mexico, develops copper, gold and silver in Brazil, in Canada and in Chile, and holds various exploration projects in Canada. Its main assets in production are PEAK MINES in Australia and CERRO SAN PEDRO, MESQUITE and CERRO SAN PEDRO in Mexico, its main assets in development are AMAPARI in Brazil, NEW AFTON in Canada and EL MORRO in Chile and its main exploration properties are AJAX - PYTHON, BUCK CLAIMS, 3TS, SIZZLER, CC PROPERTY, VO PROPERTY, TAK PROPERTY, MOUSE MOUNTAIN, G-SOUTH, CHUBBY BEAR, LIBERTY BELL, BOULEVARD, BOUVETTE, WIT YUKON, RAM, SLATE FALLS, PROSPECTOR MOUNTAIN, MAYO, DAVIDSON, BLACKWATER, BOULDER CREEK, CAPOOSE, NATIONAL, CORRAL CANYON and RUDE CREEK in Canada and RIO FIGUEROA in Chile. New Gold is listed in Canada, in Germany and in United States of America. Its market capitalisation is US$ 1.8 billions as of today (€ 1.6 billions). Its stock quote reached its highest recent level on January 07, 2011 at US$ 9.99, and its lowest recent point on March 20, 2020 at US$ 0.39. New Gold has 575 460 032 shares outstanding. |