SPDR Gold Trust (ETF) (NYSEARCA:GLD) prices moved lower today as the U.S. Dollar (CURRENCY:USD) retreated from its previous day’s losses. The strength in the greenback comes as the traders are closely looking forward to the U.S. jobless claims data to be published later today.
Global gold demand rose in the first quarter
Gold Futures for June Delivery dipped 0.40% to $1,270, but still maintaining levels close to its psychological high of $1,300. Meanwhile, an industry report published today stated that the global demand for the yellow metal grew at the fastest pace. As per the report, gold demand rose 21% year-on-year to 1,290 tons during the first quarter, which the fastest growth ever in the first three months of the year. The rise in demand is mainly drive by inflows into Exchange Traded Funds (ETF).
Newmont received rating upgrade from Goldman
Newmont Mining Corp (NYSE:NEM) received an outlook rating upgrade from the Goldman Sachs. The research firm has upgraded the stock to Buy from Neutral while increasing its price target to $36 from $23.30. The analysts mentioned that the worst is behind now, signaling to high gold prices in 2011.
B2Gold Corp (NYSEMKT:BTG) reported an upbeat first-quarter result, posting earning of $0.02 per share, which came higher than the consensus estimates of $0.01 per share. The company’s revenue grew 3.9% year-on-year to $144.3 million versus the forecasts of $148.09 million. The company’s gold production rose 10% to 127,844 ounces during the first quarter while its expects to increase the output to 510,000 to 550,000 ounces in 2016.
Meanwhile, Goldcorp Inc. (USA) (NYSE:GG) updated its investors about the implementation of Dividend Reinvestment Plan. The plan will enable shareholders to rev up their investment in the company without incurring additional transaction costs through receipt of dividend payments in the form of common shares. Moreover, the plan will allow the shareholders to reinvest the dividend proceeds for buying common shares at a 3% discount to Average Market Price.