This week could be the first weekly decline for SPDR Gold Trust (ETF) (NYSEARCA:GLD) and corresponding gold prices since May if bullion maintains its journey southward today. A rally in Asian equities after the release of optimistic data in China has improved risk appetite for investors. Moreover, overnight gains in Wall Street futures also boosted perceptions over riskier assets.
Gold heads for weekly loss
Gold futures for August delivery slid down 0.03% to $1,331.75, which will add to the metal’s 2.7% drop this week. Brian Lan, managing director at GoldSilver Central, said that the fall in gold prices is only natural after its quick run-up within a brief period. He added that gold could retreat to end-June lows if retail data in the U.S. for June inches up.
Meanwhile, three of the key policymakers from the Federal Reserve have already indicated that rate hikes will not be done in a rush following Brexit. According to HSBC analyst, James Steel, gold prices may remain vulnerable on the back of buoyant equity markets.
Kinross receives rating upgrade
Among gold miners, Kinross Gold Corporation (NYSE:KGC) received a rating boost from analysts at Jefferies. The research firm has upgraded the outlook on Kinross to ‘hold’ from ‘underperform’. Also, the firm has upped its price target to $6 from $4.
Orefinders Resources Inc. announced through a press release about its milling agreement with IAMGOLD Corp (NYSE:IAG). This agreement will pave the way for the processing of stockpiles from the Mirado mine. Currently, Mirado mine is completely owned by the Mirado Project.
TheStreet analyst, Jim Cramer, analyzed a possible reason behind Randgold Resources Ltd. (ADR) (NASDAQ:GOLD)’s run-up despite a flurry of downgrades. Cramer said that analysts downgraded on the basis of seasonal challenges and doubts over the company’s ability to deliver following an 11% production cut during first quarter. However, Randgold once again proved its mettle during difficult times with Brexit fallout being the most recent one.