Gold Oscillates as Eyes On the Fed

Gold Oscillates as Eyes On the Fed

SPDR Gold Trust (ETF) (NYSEARCA:GLD) is trading mostly directionless today as market participants are uncertain about equities or the metals ahead of the Federal Reserve’s Open Market Committee meeting this week.

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Gold prices are oscillating between small losses and gains in today’s session. Eyes are also set on the Bank of Japan’s monetary announcement as many expect the central bank to keep rates unchanged. The European Central Bank had announced deep interest rate cuts last week but had added that any further rate cut is nearly impossible.

On the other hand, experts strongly believe that the Federal Reserve will not step up interest rates during its upcoming meeting this week. The market is anxiously looking forward to hearing Fed Chair Janet Yellen’s take on the economic growth and interest rates.

Barrick to pay fine

Among the miners, Barrick Gold Corporation (USA) (NYSE:ABX) has been slapped with a fine of $9.3 million. The charges come as compensation for the cyanide spill that occurred at the company’s Veladero mine in San Juan. The company had said that failure of a valve had led to leakage, but maintained that the severity of the spill was light will not expose humans to risk.

Goldcorp Inc. (USA) (NYSE:GG) came into trouble after Moody’s trashed the gold miner’s investment grade bonds to junk status. The company bore the brunt of the gold rout until this year when the commodity witnessed an uptick. However, the research firm has changed the outlook for the gold company to negative nevertheless, raising concern over the company’s profitability and coverage metrics. Moody’s anticipates no respite for the company through 2016.

Agnico Eagle Mines Ltd (USA) (NYSE:AEM) has announced the purchase of a fresh stake in Belo Sun Mining Corp. The company has purchased 11,680,000 common shares of the company at an aggregate price of $0.53 per share, leading to a total consideration of $6,190,400.