| Broad Commodities Market Sell-Off: Impact on Gold | |
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Gold Is Buoyant despite Falling Equity Markets (Continued from Prior Part) A risk-off trend
A general sell-off wave for commodities is prevalent in the current market. However, opting out of the risky assets means more money is flowing into the safe-haven investments like Treasuries, gold, and currencies like the yen and euro. US ten-year Treasury yield fell below the 2% mark for the first time in the past six years. Higher demand for the safe-haven Treasuries means higher prices and lower yields. It’s due to an inverse relationship between the bond prices and its yields. The benchmark US ten-year note yield fell by eight basis points, or 0.08%, to 1.96% as of Monday, August 24. Recent buying ended a bearish period in gold. It had fallen to a five-year low as recently as late July.
Oil slump adds to the fuel
As oil prices fell to a six-year low, due to the oversupply concerns, the effects were seen in precious metals as well. Lower crude oil prices accompanied with volatile Chinese markets may indicate an economic slowdown. China is the world’s second largest commodity consumer. The negative sentiment in the Chinese markets is adding fuel to lower commodity prices.
As of Monday, August 24, gold fell ~0.50% and touched a high of $1,169.80 per ounce. Silver fell 3.70% as of Monday, August 24. It was a remarkable day where global markets fell and most commodities fell due to oversupply concerns. Platinum and palladium fell 3.60% and 4.80%, respectively.
Precious metals are expected to face a tough time once the interest rates climb. However, the current tighter monetary policy gives precious metals some breathing room. Gold has no cash flows like interest or dividend bearing counterparts. This makes it even tougher to compete with the other asset classes in the absence of higher inflation rates.
Miner’s performance
Mining companies like Barrick Gold (ABX), Pan America Silver (PAAS), Harmony Gold (HMY), and Gold Fields (GFI) also fell as of Monday, August 24.
Gold ETFs like the SPDR Gold Shares ETF (GLD) and the iShares Gold Trust ETF (IAU) rose during August due to the upswing in gold prices.
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Gold Fields ltd
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PRODUCTEUR |
CODE : GFI |
ISIN : US38059T1060 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Gold Fields est une société de production minière d'or basée en Afrique Du Sud. Gold Fields est productrice d'or, de cuivre au Ghana, au Perou, en Australie et en Afrique Du Sud, en développement de projets d'or au Mali, et détient divers projets d'exploration au Perou. Ses principaux projets en production sont ST IVES MINE et AGNEW en Australie, BEATRIX MINE, DRIEFONTEIN, KLOOF MINE, SOUTH DEEP, KLOOF et BEATRIX en Afrique Du Sud, DAMANG, TARKWA et DAMANG PROJECT au Ghana et CERRO CORONA au Perou, son principal projet en développement est KOMANA au Mali et ses principaux projets en exploration sont LOBO aux Philippines et CHUCAPACA et CANAHUIRE au Perou. Gold Fields est cotée aux Etats-Unis D'Amerique, en Afrique Du Sud et en France. Sa capitalisation boursière aujourd'hui est 11,7 milliards US$ (10,5 milliards €). La valeur de son action a atteint son plus bas niveau récent le 10 novembre 2000 à 1,69 US$, et son plus haut niveau récent le 13 septembre 2024 à 14,21 US$. Gold Fields possède 821 530 048 actions en circulation. |