| How the Fed’s Decision and Oil Prices Are Impacting Gold | |
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Precious Metals Are Happy to Say Goodbye to 2015 (Continued from Prior Part) Rising rates
As the gold prices have fallen in 2015, all eyes are now set on the Fed and its announced “gradual” lifting of interest rates. The rising interest rates pressure gold, as they do not bear any immediate cash flows as Treasuries and equities do. Gold has long been considered a store of value assets without intermediary cash flows.
The higher the Federal Reserve raises interest rates, the worse it gets for gold investors. Higher rates hurt gold-based ETFs like the SPDR Gold Shares (GLD) and the iShares Gold Trust (IAU).
Gold mining stocks like Royal Gold (RGLD), GoldCorp (GG), and New Gold (NGD) have lost 42.7%, 37.8%, and 46.5%, respectively, during the past year. These three stocks make up 14.1% of the Market Vectors Gold Miners ETF (GDX).
Oil-led inflation
Crude oil has fallen significantly during the past year, which has also contributed to gold’s fall. This is because oil prices play a significant role in deciding inflation. Inflation and gold tend to move in opposite directions, as gold is used as a hedge against inflation. Crude oil dropped about 35% in 2015, which in part led to the 10% drop in gold.
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New Gold Inc.
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PRODUCER |
CODE : NGD |
ISIN : CA6445351068 |
CUSIP : 644535106 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
New Gold is a gold producing company based in Canada. New Gold produces gold, copper, lead, silver and zinc in Australia and in Mexico, develops copper, gold and silver in Brazil, in Canada and in Chile, and holds various exploration projects in Canada. Its main assets in production are PEAK MINES in Australia and CERRO SAN PEDRO, MESQUITE and CERRO SAN PEDRO in Mexico, its main assets in development are AMAPARI in Brazil, NEW AFTON in Canada and EL MORRO in Chile and its main exploration properties are AJAX - PYTHON, BUCK CLAIMS, 3TS, SIZZLER, CC PROPERTY, VO PROPERTY, TAK PROPERTY, MOUSE MOUNTAIN, G-SOUTH, CHUBBY BEAR, LIBERTY BELL, BOULEVARD, BOUVETTE, WIT YUKON, RAM, SLATE FALLS, PROSPECTOR MOUNTAIN, MAYO, DAVIDSON, BLACKWATER, BOULDER CREEK, CAPOOSE, NATIONAL, CORRAL CANYON and RUDE CREEK in Canada and RIO FIGUEROA in Chile. New Gold is listed in Canada, in Germany and in United States of America. Its market capitalisation is US$ 1.3 billions as of today (€ 1.2 billions). Its stock quote reached its highest recent level on January 07, 2011 at US$ 9.99, and its lowest recent point on March 20, 2020 at US$ 0.39. New Gold has 575 460 032 shares outstanding. |