Which Gold Miners Look Attractive after 1Q17 Earnings?

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Which Gold Miners Look Attractive after 1Q17 Earnings? PART 1 OF 14

Senior Gold Miners’ Price Performances So Far in 2017

Gold’s run in 2017

Gold prices rose to a five-month high on April 13, 2017, as President Donald Trump suggested that a strong dollar made it difficult to compete with other countries. He also said his preference would be that the Federal Reserve keep interest rates low.

It’s worth noting that a weaker US dollar and lower interest rates are usually good for gold. However, after April 13, gold prices started to weaken as the safe-haven demand started to wane. That put pressure on gold prices as well as prices for other precious metals.

Senior Gold Miners&#8217; Price Performances So Far in 2017

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Gold miners’ performances

Senior gold miners (GDX) finished well in 2016 on the back of stable precious metal prices. But things aren’t the same in 2017. Senior gold miners as a whole underperformed all other categories of miners until May 9, 2017. On average, they’ve fallen 1.5%.

Kinross Gold (KGC) outperformed its peers with a YTD (year-to-date) rise of 18.3%. Newmont Mining (NEM) and Goldcorp (GG) have fallen 4.5% and 1.0%, respectively. Barrick Gold (ABX) has risen 1.0% in the same period.

Series overview

All major senior gold miners have now reported their earnings for 1Q17. In this series, we’ll see which of them fared better than others and look at the various factors that are affecting Barrick Gold, Newmont Mining, Goldcorp, and Kinross Gold.

Goldcorp (GG) makes up the largest share of the VanEck Vectors Gold Miners ETF (GDX) at 7.2%.

In the next part, we’ll see which miners beat market expectations and which ones did not. We’ll also see the reasons for the beats and the misses.


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