| Why Positive Outlook on the US Dollar Is Negative for Gold | |
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Is This the Right Time to Buy Gold? (Continued from Prior Part) US dollar
Tracked by the Federal Reserve, the weekly US Dollar Index (UUP) measures the value of the dollar compared to its six significant trading partners—the euro, Japanese yen, British pound, Canadian dollar, Swiss franc, and Swedish krona. A rising value means that the dollar is stronger compared to other currencies and vice versa.
The expectations of a Fed rate hike this year are keeping the US dollar buoyant. In the latest move, China devalued the yuan on August 11 and then again on August 12. This pushed the US dollar even higher. China described the devaluation as a “one-off depreciation.” This pushed the yuan to the lowest level against the US dollar in almost three years.
Positive outlook
The Fed will likely take a more gradual approach at rising interest rates. However, its stated policy of rate hikes either this year or next year is in contrast to loosening monetary policy elsewhere, especially in Europe and Japan. In contrast, commodity price weakness is impacting commodity-producing countries’ currencies, including Australia and Canada. China’s recent moves will put more pressure on commodity producer countries’ currencies. This is expected to add to the strength of the US dollar.
US dollar and gold
Dollar-denominated assets, including gold, are influenced by the dollar’s strength. A strong US dollar is negative for gold and vice versa. The current strength in the US dollar is also putting pressure on gold prices.
As a result, it’s important to track the direction of the dollar. This can point you towards the direction of gold prices (GLD) and gold stock prices like AngloGold Ashanti (AU), Gold Fields (GFI), and Agnico Eagle Mines (AEM). The US dollar also influences funds like the Market Vectors Gold Miners ETF (GDX). Together, these three companies contribute 11.90% towards GDX’s holdings.
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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. |