Arab Today, arab today gold rises but mining firms fall
Last Updated : GMT 19:51:48
Arab Today, arab today
Arab Today, arab today

Gold rises but mining firms fall

Arab Today, arab today

Arab Today, arab today Gold rises but mining firms fall

New York - Arabstoday

Gold has surpassed $1,600 an ounce, soaring to an all-time record as investors flee to safety. Gold mining firms have not seen that kind of action.Over the past few weeks gold stocks have been more correlated with the S&P than the price of gold, resulting in days when gold rises but miners fall, something that’s happening more and more.The 50-day correlation between the S&P 500 and the Amex Gold/Silver Index was strong in the middle of July as gold and gold stocks moved in opposite directions. That has reversed recently, to the benefit of Matousek, a trend that hopes to continue. In July the S&P has struggled, losing 1.7 per cent, but the Gold Index is up 3 per cent and gold is up 8.2 per cent.Gold futures have risen, in fact, for the past 10 consecutive years as investors scooped up the yellow metal to protect against economic and political instability throughout the globe. Many industries have benefited from the metal’s rise, but one that has not surprisingly is the gold mining industry, according to a recent report.While gold prices have hit record levels this year — and have logged record after record the past few weeks — shares of many gold miners have fallen, The Wall Street Journal reports.As precious metals buyers and scrap gold buyers alike benefit from the upward march in gold prices, why have gold miners not fared as well? According to industry analysts, this phenomenon is unlikely to last very much longer. Unless gold prices fall precipitously over the coming months — unlikely at best — shares in gold mining companies should start to climb in the near-future, Evy Hambro, the head of the natural resources team at BlackRock, affirms. “The performance of equities against bullion is not looking pretty at the moment,” Hambro said in an interview.This year, gold futures have climbed 2.4 per cent on inflationary pressures and continued instability throughout the Middle East and North Africa, where a wave of revolutions have overturned governments and fueled fears that oil supplies would be disrupted.On the other hand, shares of Barrick Gold Corp, which is the world’s biggest gold producer, have fallen 1.7 per cent during the same period of time. Newmont’s stock has also dropped 7.5 per cent, while shares of Kinross Gold, the seventh-biggest gold producer, have plummeted 18 per cent.The divergent path that gold futures and shares of gold mining companies have taken has caused a bit of head scratching amongst industry watchers. According to experts, gold prices and the shares in gold mining companies tend to rise and fall concurrently.Nonetheless, analysts assert that the combination of political and economic worries could send gold mining stocks higher in the coming months as investors look toward gold and other precious metals to hedge against swiftly rising consumer prices and continued violence in Libya and throughout the Middle East.“At the end of the day, gold equities are equities,” Hambro affirmed. “There has generally been quite a sharp decline in the markets, and gold equities cannot hide from that.” Hambro is bullish on gold mining stocks and contends they could rise much higher as the year goes on and inflation and political fears persist.Even so, the rise would likely be less than the growth gold could experience, according to analysts. In the past, investors have invested in both physical gold and gold mining companies, but they may want to limit their exposure to both fields in case prices fall. One thing, however, is likely, Hambro asserted: “This relationship never breaks down for very long.”Newmont Mining (NEM), the largest US based gold mining company, reported on Friday that second quarter earnings came in at $523 million, or $1.06 per share.  While this figure represented a 37  per cent increase over the prior year period, when adjusted for various one-time items, earnings per share was $0.90 — which fell far short of the $0.99 consensus estimate among Wall Street analysts.As a result of the earnings miss, shares of NEM — the only gold stock included in the S&P 500 Index — fell $1.38, or 2.4 per cent, to $56.35 in pre-market activity. From / Gulf Today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today gold rises but mining firms fall Arab Today, arab today gold rises but mining firms fall

 



Arab Today, arab today
Arab Today, arab today Ideen Belmahdy happy to be part of “ Fashion Star”

GMT 17:00 2017 Sunday ,26 February

Ideen Belmahdy happy to be part of “ Fashion Star”
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 06:26 2017 Sunday ,26 February

Copper recovers lost ground

GMT 15:53 2017 Saturday ,25 February

Bahrain Bourse daily trading report

GMT 14:28 2017 Saturday ,25 February

Gold hits 3.5-month high

GMT 03:11 2017 Saturday ,25 February

50 Tunisian exhibitors at Gulfood 2017, Dubai

GMT 02:19 2017 Saturday ,25 February

SIEL expo, March 1-4

GMT 12:30 2017 Friday ,24 February

Norway's Telenor to leave Indian telecom market

GMT 10:17 2017 Friday ,24 February

Dow stands out as global stocks tread water
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday