In response to the recovering oil prices, Gold Futures recorded a steep decline today, indicating that the two stay parted, which is unusual of their tendency to remain co-related. Gold Futures for April delivery fell 1.93% to $1,207.10 today as crude marched up by more than 3%.
Gold limits losses
Still, Gold maintained its level above $1,200 as investors across the global markets remain cautious and doubt continuity of recovery in the stock markets or oil. Gold touched a one year high earlier in February after investors rushed to safer assets. The Fund flows in exchange traded funds (ETF) continue to lend support to the yellow metal, which is encountering a diminished demand in China. SPDR Gold Trust (ETF) (NYSEARCA:GLD) traded 0.60% lower to $117.58 the previous day. The ETF witnessed a fund flow of 19.33 tonnes on Friday, adding up to 732.96 tonnes in total assets.
At the same time, the rally in the U.S. Dollar is also impeding Bullion. The dollar found support after a report showed that the inflation in the U.S. rose the most in January, a level highest in last four and a half years.
Meanwhile, the things are not shaping well for gold mining companies as Kinross Gold Corporation (USA) (NYSE:KGC) took a beating in the last session after Standard & Poor’s trimmed the credit rating on the company to ‘BBB-‘ from ‘BB+’. The analysts are of the view that the company’s higher costs will weigh on its competitiveness against industry peers.
Gold Fields Limited (ADR) (NYSE:GFI), another gold miner saw its stock price drop 1.86% to $3.96 after it announced its intention to buy back $200 million of bonds at a discount of 17%. Franco-Nevada Corporation (NYSE:FNV) was an exception as it added 0.31% to $57.32 during the previous session. The company confirmed the closing of its public offering of 19,228,000 shares, which fetched it a total of $920 million.
Lastly, AngloGold Ashanti Limited (ADR) (NYSE:AU) managed to return to profits, mostly due to the company’s strategic efforts and debt reduction plan that reduced by 30%. The company does not see the need to sell more assets this year from balance sheet point of view.