Gold Futures Rise Near Record, Pushing Miners Higher
Gold futures advanced near a record as inflation expectations declined, easing pressures on the U.S. Federal Reserve to keep interest rates high and boosting the investment appeal of the precious metal that doesn't offer any income.
$Gold Futures(DEC4) (GCmain.US)$ rose 1.2% to settle at $2,504 an ounce in New York Monday, less than $2 below the record close for a most-active contract. That pushed the S&P Global Mining Gold Index up 1%. $Silver Futures(DEC4) (SImain.US)$ rose 1.6% to $28.025 an ounce.
$Newmont (NEM.US)$, the world's largest gold producer, rose 2.5% to $48.90 at 3:34 p.m. in New York.
While the median one- and five-year-ahead inflation expectations were unchanged in July, the New York Fed’s survey of consumers showed the median three-year-ahead inflation expectations declined sharply by 0.6 percentage point to 2.3%, hitting a series low since the survey’s inception in June 2013. The median household spending growth slowed to 4.9%. the weakest since April 2021, the survey showed.
Meanwhile, the Pentagon is sending a guided-missile submarine to the Middle East, while Israel put its military on high alert, the Wall Street Journal. That adds to a pile of risks that could fuel demand for safer assets like gold.
$Barrick Gold (GOLD.US)$ advanced 8.5% to $18.88 in New York. Its shares in Toronto rose 8.6% to C$25.97. Apart from higher gold prices, the mining company also got a boost from better-than-expected earnings in the second quarter, making up for lower gold and copper production. The company reported second quarter adjusted earnings of 28 cents a share, beating analyst estimates that called for 27 cents.
$Iamgold (IAG.US)$ advanced 10% to $4.71. The company also got a boost from a stock price upgrade from CIBC. The bank's analyst raised the target to $5.40 a share, from $4.90.
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Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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104607726 : Insightful. Thank u