| US CPI Inflation Sees Marginal Uptick in February | |
| | |
|
Gold Indicators Still Point to Pressure on Gold Prices (Part 2 of 12) (Continued from Part 1) US inflation firming?
According to the report released by the US Bureau of Labor Statistics on March 24, the consumer price index (or CPI) for all urban consumers was flat year-over-year in February. The US CPI inflation reading for January was -0.1%. The slight rebound in February was due to a rise in gasoline prices for the first time since June.
Inflation hedge
Investors hold gold in their portfolios as an inflation hedge. Usually when inflation is high, the value of paper currency falls in terms of goods and services for which it can be exchanged. This leads investors to look for something that doesn’t lose its value.
Gold is a great alternative for this scenario, and gold usually has a direct relationship to inflation. Gold demand increases during periods of high inflation and falls when inflation is low.
So, on one hand, firming up of inflation is positive for gold, as investors view gold as an inflation hedge. On the other hand, as inflation inches up, it could bring the Fed rate hike forward, which will be negative for gold and gold stocks such as Gold Fields (GFI), AngloGold Ashanti (AU), Newmont Mining (NEM), Agnico Eagle Mines (AEM), and gold-backed ETFs such as the SPDR Gold Trust ETF (GLD) and the Market Vectors Gold Miners ETF (GDX).
Goldcorp makes up 7.6% of GDX, the largest percentage of the fund’s holdings. These ETFs invest in all of the stocks mentioned above.
Continue to Part 3 Browse this series on Market Realist:
|
|
|
PRODUCER |
CODE : AU |
ISIN : US0351282068 |
|
| |
ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
AngloGold is a gold producing company based in . AngloGold produces gold, copper, silver and zinc in Argentina, in Australia, in Brazil, in Canada, in Ghana, in Guinea, in Mali, in Namibia, in South Africa and in Tanzania, develops gold and iron in Australia, in Brazil, in Colombia, in Congo Dem. Rep. of and in South Africa, and holds various exploration projects in Philippines. Its main assets in production are CRIXÁS, MINERAÇÃO, SAO BENTO, ANGLOGOLD ASHANTI MINERAÇAO and CRIXAS MINE in Brazil, SUNRISE DAM GOLD MINE in Australia, NAVACHAB MINE and NAVACHAB in Namibia, YATELA, MORILA and SADIOLA in Mali, CERRO VANGUARDIA in Argentina, MPONENG (WESTERN DEEP NO. 1 SHAFT), TAUTONA (WESTERN DEEP NO.3 SHAFT), BAMBANANI, TAU LEKOA, MPONENG, SAVUKA, TAU TONA, GREAT NOLIGWA, KOPANANG and CRIPPLE CREEK & VICTOR (CRESSON MINE) in South Africa, SIGUIRI in Guinea, TEBEREBIE, IDUAPRIEM, OBUASI and KUBI in Ghana, GEITA in Tanzania and TROUT LAKE MINE and CALLINAN MINE in Canada, its main assets in development are MOAB KHOTSONG in South Africa, MINAS-RIO in Brazil, LA COLOSA and GRAMALOTE in Colombia, KIBALI (KILO-MOTO) in Congo Dem. Rep. of and TROPICANA in Australia and its main exploration properties are HUALATAN and ER in Peru, MKURUMU in Tanzania, 777 PROJECT and RIVARD in Canada, LOUBOUGOULA, GOODPASTER and ALAMOUTALA (SADIOLA II) in Mali, BAMBADJI in Senegal, MORRO VELHO in Brazil and SIANA in Philippines. AngloGold is listed in Australia, in Germany and in United States of America. Its market capitalisation is US$ 9.0 billions as of today (€ 8.4 billions). Its stock quote reached its lowest recent point on November 23, 2018 at US$ 10.00, and its highest recent level on April 24, 2024 at US$ 21.92. AngloGold has 409 109 984 shares outstanding. |