Gold SPDR Gold Trust (ETF)(NYSEARCA:GLD) prices are hovering near 13-month highs as weaker dollar and equities are fuelling demand for the yellow metal. Moreover, the weaker than anticipated trade numbers reported in China has further erased the expectations of a recovery in the world’s second-largest economy.
Gold Futures for April delivery was seen trading 0.92% up at 1,275.60, near 13-month high of 1,280.70. The fresh trade numbers reported by China has prompted the investors to flee to safe assets such as Japanese Yen and Gold.
Going ahead into the week, the European Central Bank’s scheduled policy meeting on Thursday will set the tone for the markets. There are increased hopes that the Central Bank will announce additional stimulus measures to revive the economy. The Federal Reserve has already hinted at the faint probability of rate hike over the short term. In the wake of these developments, Daniel Ang, an analyst at Phillip Futures, holds the view that Gold can soon test $1,300 per ounce level.
Kinross gets a thumbs up
While the gold prices are rising, Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) has been downgraded by Morgan Stanley to “Equal-weight’ from ‘Overweight’. The firm’s analyst has suggested that the company is appropriately valued, and it’s time to book profits in it.
On the other hand, Kinross Gold Corporation (USA) (NYSE:KGC) rallied after BMO Capital Markets raised the price target on the company. The research firm has raised the price target to $3.75 from $2.75 after the gold miner announced the conclusion of its 83.4 million shares offering. The company realized gross process of nearly $250 million from the offering, which will be utilized towards strengthening its balance sheet and enhancing long-term liquidity position.
Meanwhile, Harmony Gold Mining Co. (ADR) (NYSE:HMY)’s stock was seen pumped up after a Bloomberg report threw light on the favorable circumstances surrounding the company following the dip in South African Rand. The impact is such that Harmony is making a profit of 160,000 rand on each kilogram versus the loss of 14,000 rand last year.