| US CPI Inflation Sees Marginal Uptick in February | |
| | |
|
Gold Indicators Still Point to Pressure on Gold Prices (Part 2 of 12) (Continued from Part 1) US inflation firming?
According to the report released by the US Bureau of Labor Statistics on March 24, the consumer price index (or CPI) for all urban consumers was flat year-over-year in February. The US CPI inflation reading for January was -0.1%. The slight rebound in February was due to a rise in gasoline prices for the first time since June.
Inflation hedge
Investors hold gold in their portfolios as an inflation hedge. Usually when inflation is high, the value of paper currency falls in terms of goods and services for which it can be exchanged. This leads investors to look for something that doesn’t lose its value.
Gold is a great alternative for this scenario, and gold usually has a direct relationship to inflation. Gold demand increases during periods of high inflation and falls when inflation is low.
So, on one hand, firming up of inflation is positive for gold, as investors view gold as an inflation hedge. On the other hand, as inflation inches up, it could bring the Fed rate hike forward, which will be negative for gold and gold stocks such as Gold Fields (GFI), AngloGold Ashanti (AU), Newmont Mining (NEM), Agnico Eagle Mines (AEM), and gold-backed ETFs such as the SPDR Gold Trust ETF (GLD) and the Market Vectors Gold Miners ETF (GDX).
Goldcorp makes up 7.6% of GDX, the largest percentage of the fund’s holdings. These ETFs invest in all of the stocks mentioned above.
Continue to Part 3 Browse this series on Market Realist:
|
|
|
Gold Fields ltd
|
|
PRODUCTEUR |
CODE : GFI |
ISIN : US38059T1060 |
|
| |
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. |