In early European hours, SPDR Gold Trust (ETF) (NYSEARCA:GLD) was seen hovering around $1,270, close to the psychological level of $1,300. Gold Futures contract for June delivery was up by 0.76% to $1,274.35.
Goldman Sach revises bullions outlook
The momentum in the yellow metal came after the U.S. Dollar (CURRENCY:USD) took a rest from its six-day rally. The forex traders booked profits ahead of the possible intervention by the Japanese Government. Goldman Sachs Group Inc. revised its forecasts for bullion upwards as a result of scaled down expectations for the rate hike by the U.S. Federal Reserve. In other commodities, Silver Futures for July delivery surged 1.57% to $17.360.
Lower realized gold prices led to an underperforming quarter for Kinross Gold Corporation (USA) (NYSE:KGC). The average realized gold price in the first quarter fell 3.2% to $1,179 per ounce. Kinross’s production during the quarter stood at 687.463 equivalent ounces of gold, which was up from 629,360 ounces of gold produced last year. The production growth can be attributed to the company’s acquisition of Round Mountain and Bald Mountain mines in Nevada.
KGC reported weak quarter
The company kept its 2016 production outlook as is and raised the capital expenditure forecast to $755 million, up from $160 million. This capital expenditure projection includes Tasiast Phase One expansion. The net loss of the company jumped to $13.9 million during the first quarter from that of $6.7 million. This translates into an earnings loss of $0.01 per share. Revenues of the company came in at $782.6 million, which came lower than the street’s projection of $799 million.
Meanwhile, AngloGold Ashanti Limited (ADR) (NYSE:AU), another prominent gold miner, has received a rating downgrade by the Citigroup. The research arm of the Bank has downgraded the stock to Sell from Neutral. Earlier this week, the company had expressed optimism that the South Africa mining-charter dispute will settle.