26 May

Gold Prices Gain Marginally despite Sluggish Demand

WRITTEN BY Gordon Kristopher

Gold prices

This series analyzes gold prices and market fundamentals. For an in-depth look at gold and related companies, sectors, and drivers, please refer to our Gold ETFs page.

COMEX-traded gold futures contracts for June delivery gained marginally by 0.22% on May 25, 2015. They were trading at $1,207.60 per ounce. Prices gained marginally despite slowing demand and the appreciating dollar.

ETFs like the SPDR Gold Trust (GLD) and the iShares Gold Trust (IAU) generally follow gold prices. Likewise, the VanEck Vectors Gold Miners ETF (GDX) reflect gold’s price movement most of the time.

Gold Prices Gain Marginally despite Sluggish Demand

Lower gold prices impact gold miners’ revenue like Kinross Gold (KGC), Yamana Gold (AUY), and B2Gold (BTG). These companies account for 10.35% of GDX.

China and India are the major buyers of physical gold. They represent 54% of global gold demand. The slowing demand from China and India might push gold prices lower. Demand in India would be lower because there aren’t any festivals in the next three months.

The better prospects of the rising interest rate in the US supported the US dollar. Market surveys suggest that the Federal Reserve might increase the interest rate by September 2015. The US Dollar Index appreciated against the major currencies and rose to 96.42 on Monday’s trade. The rising dollar makes dollar denominated gold expensive. This curbs the demand for gold. It put pressure on gold prices.

Gold prices increased for the sixth time in the last ten days. During the same period, gold prices rose by 0.27% more on the average up days than on the average down days. Gold had a mediocre performance in yesterday’s trade. Prices increased by 2.24% YTD (year-to-date)—led by increased demand from India.

Latest articles

JCPenney (JCP) is slated to announce its results for the first quarter of fiscal 2019, which ended on May 4, on May 21.

17 May

What to Know about the US-China Trade War

WRITTEN BY Mayur Sontakke, CFA, FRM

The key point of contention in the US-China trade dispute is the large trade deficit the United States runs against China.

On May 16, the Labor Department reported jobless claims for last week. Initial jobless claims fell by 16,000 to 212,000 for the week ended May 11.

Jeffrey Gundlach recommended investors take advantage of the volatility in interest rates at the recent Sohn Conference.

Tesla (TSLA) has fallen 4.2% as of 11:55 AM EDT on May 17. While US equity markets opened in the red today, they've recouped their losses.

According to Reuters, on May 16, Vale (VALE) told prosecutors that a dam was at risk of rupturing at its Gongo Soco mine.

172.31.71.127