Gold Prices Gain Traction After Oil And Equities Fall

Gold Prices Gain Traction After Oil And Equities Fall

SPDR Gold Trust (ETF) (NYSEARCA:GLD) rallied on Tuesday after oil and equities suffered a steep decline that prompted the surge in demand for safe haven assets. Gold Futures contract for June delivery jumped 1.14% to $1,233.10 during the early European hours.

Pressure on Dollar and oil

The U.S. dollar fell to its 17-months lows while the oil prices declined to four-week lows on mixed monetary outlook among the Fed officials. Moreover, the slump in global equities dragged the market sentiment with more participants fearing a recession in global economic growth.

Up ahead in the day, the market will look forward to service sector activity, which will provide indications on the resilience of the economy. At the same time, minutes of the Federal Reserve meeting, which are set to be released tomorrow, will also be in the spotlight for the market players.

In other metals, Silver Futures for May delivery too surged 1.14% to $15.115.

NovaGold reports loss

Meanwhile, NovaGold Resources Inc. (USA) (NYSEMKT:NG) came under pressure after it posted a first-quarter loss of close to $10 million or $0.03 per share. The company failed to meet the forecasts by $0.01 per share. The stock of the company has witnessed a surge of 20%  so far this year.

Newmont Mining Corp (NYSE:NEM) released a sustainability report for 2015, which elaborately describes the company’s safety, environmental, economic and social performance. Newmont was named the mining industry’s leader in terms of sustainability performance in 2014 by the Dow Jones Sustainability World Index.

The one gold mining company, which is gaining attention from a series of analysts is Kinross Gold Corporation (USA) (NYSE:KGC).TD Securities is the latest of research firms that have upgraded its outlook on Kinross’ stock. The firm has revised the rating to Buy from Hold while raising the price target to $4.50 from $3.50.