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The Precious Metals Rout: Impact on Miners and ETFs (Continued from Prior Part) Declining ETF holdings
Gold’s trading price on Friday closed at $1,090.00. It hit a high of $1,093.00 and a low of $1,082.70. With declining gold prices, the most famous gold ETF, the SPDR Gold Shares ETF (GLD), has also lost its allure. It’s trading at lower volume. The fund’s last trading price was $104.39.
GLD has seen a year-to-date trading loss close to 8.06%. This loss is close to the fall we’ve seen in real gold holdings. The ETF’s holdings, in general, have fallen. The ETF’s current gold holdings declined to ~1,529 tonnes—the lowest mark they’ve seen in the past six years.
The declining demand for gold ETFs mostly relates to tumbling prices. Also, tentative rate hikes further affect gold, as it has no cash flows, unlike other interest-bearing assets. The chart below shows the ETF’s holdings since 2003.
Outlook remains bearish
As more and more investors turn bearish on gold, other precious metals have also seen a similar kind of disdain recently. Silver futures for September delivery on COMEX saw an up-day on Friday but lost 1.42% on a five-day trailing basis. Platinum futures for October delivery saw a down-day and closed at the mark of $956, down 0.89%. palladium has been the most affected among precious metals. It has taken a hit close to 14.25% on a 30-day trailing basis.
Hedge funds have also taken a bet on declining gold prices for the first time on record. We’re currently seeing more bearish sentiment in the market for precious metals than bullish sentiment. The bearish sentiment has its roots in the stabilizing US economy. Rate hike speculation is likely fueling the bearish outlook.
Miners have suffered in the past few months. Mining companies like AngloGold Ashanti (AU), Agnico Eagle Mines (AEM), and Newcrest Mining (NCM) saw an up-day on August 6, 2015. The Global X Silver Miners ETF (SIL) lost close to 24.45% on a 30-day trailing basis, but it ended on a positive note on Friday, climbing 1.57%. AEM, NCM, and AU contribute significantly to the Market Vectors Gold Miners ETF (GDX).
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PRODUCER |
CODE : AU |
ISIN : US0351282068 |
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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$ 9.7 billions as of today (€ 9.1 billions). Its stock quote reached its lowest recent point on November 23, 2018 at US$ 10.00, and its highest recent level on April 18, 2024 at US$ 23.71. AngloGold has 409 109 984 shares outstanding. |