SPDR Gold Trust (ETF) (NYSEARCA:GLD) prices remained remarkably steady in the face of a strengthening US dollar this morning. Gold Futures for April delivery lost only 0.45% to 1,251 today. Gold’s resilience is especially surprising given that the dollar index is trading higher by a full percent after the European Central Bank’s decision to cut rates further and add to their asset purchasing program.
Gold Demand Steady
The yellow metal has racked up gains of as much as 17% from the start of the year due to uncertainty in global markets and a weak outlook for economies. According to William Adams, head of research at Fastmarkets, the gain in gold prices is not necessarily due to the move towards safer assets but rather could be a sign of real demand for the commodity.
The outcome of the ECB decision ended up causing only a brief decline in gold so far, which was quickly reversed within a few minutes as price went quickly back above the $1250 mark.
Meanwhile in Miners
Meanwhile, analyst Richard Hatch at RBC Capital Markets has projected a pullback in the value of Sibanye Gold Ltd (ADR) (NYSE:SBGL) due to its exposure to South Africa. The analyst maintains a Sector Perform rating on the stock on valuation grounds.
At the same time, Zacks research firm has revised its outlook on Franco-Nevada Corporation (NYSE:FNV) stating that it expects the company to deliver robust earnings results on March 11. The research firm noted that analysts are expecting the company to report earnings of $0.15 per share now as against the earlier estimate of $0.13 per share. Overall the revised estimates show that the company is well-positioned to achieve upbeat results in its fourth quarter.
Goldcorp Inc. (USA) (NYSE:GG) announced a change in its senior management as a part of its effort to focus on portfolio performance optimization of low-cost mines while it aims to progress on its organic project pipeline. The company has recently exited its intensive project development phase.