Gold SPDR Gold Trust (ETF) (NYSEARCA:GLD) prices pared early day gains today, taking rest from its two-day rally, ahead of the release of U.S. inflation data. Traders anxiously await the report, which will offer indication of a possible upcoming rate hike by the Federal Reserve.
Key event for market
In European trade, Gold Futures for June 2016 delivery traded marginally lower by 0.13% at $1,272.55. According to market analysts, the Commerce Department might report 0.3% increase in consumer prices in April while core inflation number is projected to rise by 0.2%.
On a yearly basis, core CPI is expected to grow 2.1%. For the Fed, core prices value more than consumer prices because it excludes volatile energy and food items. Apart from inflation data, the U.S. agencies are also scheduled to release a series of other reports, including housing starts and building permits, industrial production and capacity utilization.
Eldorado exits China
Meanwhile, Eldorado Gold Corp (NYSE:EGO) has confirmed that it is set to exit China after 11 years. The company notified its investors that it has sold its stakes in two mines along with one development project to Yintai Resources Co Ltd. Deal value is reported to be $600 million for Eldorado. According to the press release, Eldorado will sell 95% of its stake in the White Mountain mine, 90% of its share in the Tanjianshan mine as well as 75% of interest in Eastern Dragon project to Yintai.
Credit Suisse has raised stock price target for Alamos Gold Inc (NYSE:AGI) after the latter posted its first quarter results for FY16. As per new upgrade, the research firm has upped the price target to $7.25 from $6, stating that it anticipates gold prices to move towards $1,350 per ounce by the first quarter of FY17.
Similarly, price target for IAMGOLD Corp (NYSE:IAG) also stands revised by Credit Suisse. The research firm raised the target for the company to $3 from $2 while maintaining underperform rating for it.
