Arab Today, arab today gold rises but mining firms fall
Last Updated : GMT 18:30:25
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

arabstoday
arabstoday

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

 



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 Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today A no-frills business success

GMT 07:00 2017 Wednesday ,20 September

A no-frills business success
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israel sees benefits in independent Kurdistan

GMT 07:58 2017 Wednesday ,20 September

Israel sees benefits in independent Kurdistan
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today New Zealand opposition looks

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Five trends at the Frankfurt auto show

GMT 12:04 2017 Monday ,18 September

Five trends at the Frankfurt auto show
Arab Today, arab today Horia Farghaly happy for success of “Case G”

GMT 12:14 2017 Monday ,18 September

Horia Farghaly happy for success of “Case G”
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 06:31 2017 Saturday ,16 September

Eman Al Assy receives three offers

GMT 05:05 2017 Tuesday ,12 September

Pregnant woman's suicide roils China

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 04:26 2017 Wednesday ,20 September

Opioid overdose deaths take 2.5 months

GMT 11:40 2017 Monday ,18 September

Russia and Iraq restore air travel

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:56 2017 Friday ,15 September

Apple's grand plan in Ireland held up by a forest

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
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