Gold Prices Gain At The Expense Of Dollar

SPDR Gold Trust (ETF) (NYSEARCA:GLD) prices have breached their key $1,300 level during the European trade as the U.S. Dollar (CURRENCY:USD) hit 15-month lows against other global currencies.

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Gold breaches $1,300 level

Dollar-denominated gold usually gets a lift when the greenback weakens as it enhances the yellow metal’s appeal as a safe-haven asset. Gold Futures Contract for June’16 delivery was last seen trading 0.21% higher at $1,298.55.

The selling pressure in the U.S. dollar continues as the Japanese Yen made a fresh 18-month high against the greenback. The gold prices have added up more than 18% so far this year. According to notable author and gold markets expert, Jim Rickards, the gold prices can climb further if the weakness in the dollar continues. However, Rickards has not specified any price target for the commodity yet.

Goldcorps reports profit after a year of loss

Goldcorp Inc. (USA) (NYSE:GG) is among the gold miners that released its quarterly report recently. The company posted a profit of $80 million or $0.10 per share in the first quarter, which compares to the net loss of $87 million or $0.11 per share. The company’s focus to reduce costs has proved to be effective in turning around its financial position. Goldcorp’s revenues during the reported quarter stood at $944 million, which implied a drop of 7.2% year-on-year. Still the company managed to beat the consensus revenue estimate of $930 million.

Lake Shore Gold Corp (NYSEMKT:LSG) too announced profits in its first quarter. The company recorded net income of $2 million, i.e., $0.33 per share. Adjusted earnings stood at $0.15 per share. At the same time, the holding company of Lake Shore attained revenues worth $6 million in the first-quarter.

Besides this, NovaGold Resources Inc. (USA) (NYSEMKT:NG) updated the investors about the permitting activities related to its Donlin Gold project. The company said that it is closely working with regulators to advance through the numerous state projects required to start operations.

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