| Why Are Gold Prices on a Free Fall? | |
| | |
|
Gold Is Losing Its Sheen: Where's It Heading? Gold prices are on a free fall
We discussed gold’s waning safe-haven appeal in Why Gold Is Losing Its Safe-Haven Appeal amid Current Turmoil . While most of the uncertainty surrounding Greece’s immediate departure from the Eurozone is over, gold’s woes aren’t over. Gold fell to a five-year low on July 20. There are several factors responsible for this steep fall. We’ll discuss these factors in detail in the rest of this series.
At one point on Monday, July 20, gold prices had fallen to $1,086 per ounce before settling at $1,104 per ounce. This is the lowest level gold has reached since March 2010. The SPDR Gold Trust (GLD) tracks the price of spot gold. It fell 5.60% in the last seven days of trading. In the same timeframe, the Market Vectors Gold Miners ETF (GDX) fell 16.30%. The Market Vectors Junior Gold Miners ETF (GDXJ) fell a whopping 11.60% on July 20.
The big cap gold miners also weren’t spared from gold’s downward slide. On July 20, Barrick Gold (ABX), Goldcorp (GG), and Newmont Mining (NEM) fell 15.70%, 12.30%, and 12.20%, respectively.
Gold indicators
Gold prices are impacted by a host of variables. In this series, we’ll look at the following factors that investors can track to get a sense of the direction of gold prices. The factors include:
- US inflation
- US dollar
- Chinese gold demand
- Chinese gold reserves
- gold ETF holdings
We’ll also look at the impact of US data on the US dollar and gold prices. Then, we’ll discuss various factors of the US labor market. These are the most important considerations that the Fed reviews before deciding on the quantum and timing of rate hikes. We’ll also look at how the physical gold in the Asian market is expected to progress going forward.
These indicators should point you in the same direction as gold prices. They will also suggest movements in companies’ share prices like Goldcorp, Royal Gold (RGLD), Silver Wheaton (SLW), and Kinross Gold (KGC). Combined, these companies account for 19.10% of GDX.
Continue to Next Part Browse this series on Market Realist:
|
|
|
Royal Gold Inc.
|
|
PRODUCER |
CODE : RGLD |
ISIN : US7802871084 |
|
| |
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$ 9.4 billions as of today (€ 8.4 billions). Its stock quote reached its lowest recent point on February 28, 1992 at US$ 0.03, and its highest recent level on September 20, 2024 at US$ 143.61. Royal Gold has 65 455 293 shares outstanding. |