Gold Prices Surge As Dollar Extends Losses

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gold mountain

SPDR Gold Trust (ETF) (NYSEARCA:GLD) prices maintain their upward momentum as the commodity traded close to its 15-month high. Gold Futures for June 2016 delivery was seen trading up by 0.84% to $1,301.55 during the early European trading hours.

Buying in gold to remain steady

The fresh new slide in the U.S. dollar (CURRENCY:USD) coupled with weakness in the global equities has shifted the sentiment in favor of safe-assets. According to MKS Group’s Sam Laughlin, the trading in the commodity is likely to be range bound as most of the Asian markets as well as London are closed for Labor Day holiday. Moreover, the demand for Gold improved further after the Federal Reserve decided to maintain its dovish stance on rate hikes.

At the same time, INTL FCStone analyst, Edward Meir, stated that the buying momentum in gold would remain as per technicals. He added further that the selling pressure in the dollar may continue till the first half of May, which will benefit the gold prices eventually.

Agnico not targeting acquisitions

In the gold mining related stocks, Sandstorm Gold Ltd (NYSEMKT:SAND) has received a downgraded rating from the analysts at the RBC Capital Markets. The research firm has trimmed its outlook on the company to Sector Perform from Outperform.

Meanwhile, B2Gold Corp (NYSEMKT:BTG) reported its first quarter gold production at 127,844 ounces, which came 10% higher than the output in the same period last year. The company posted gold sales of 120,899 ounces and revenues to the tune of $144.3 million. Among other key developments, the company noted that it has secured financing arrangement for $120 million in prepaid gold sales.

Apart from this, Agnico Eagle Mines Ltd (USA) (NYSE:AEM)’s CEO and Vice Chairman, Sean Boyd, has made it clear that the company plans to grow its roots in the local markets and thus, not pursuing any acquisition deals to expand its footprint.

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