Gold prices hit a level below $1,200 today, signaling that the market sentiment is improving. Gold Futures for April 16 delivery was seen trading near $1,215, down 1.97%. The yellow metal saw a steep upsurge last week that helped it climb one-year highs after concerns grew over the health of the banks across the world.
Time to exit Gold
However, if analysts from Goldman Sachs are correct, then the rally in the metal is over. The research firm indicated that the worries around China, oil slide and negative interest rates have influenced the gold prices way too much and that it’s time to short positions. Goldman expects Gold prices to touch a low of $1,000 during the next one year.
Goldman backed its statement while pointing that the rate hike in the U.S. will entail pressure on Gold. Moreover, demand for gold back in China is not likely to improve as the investors are in the mood to offload the metal rather than buying it.
Gold miners: Mix of worries and relief
On back of these developments, most of the major gold miners in the U.S. will open up for trading today. Weakness in gold prices has already started reflecting on Barrick Gold Corporation (USA) (NYSE:ABX), which is trading 5.31% lower at $11.60 during the pre-market session. The company is set to report its fourth-quarter results tomorrow as investors expect it to keep its debt cut plans static despite an 18% jump in gold prices in 2015-16.
Yamana Gold Inc. (USA) (NYSE:AUY) is witnessing a steep decline in its stock prices as investors regain confidence in the global economic environment, leading a fading interest in the yellow metal. Yamana Gold fell 7.09% to $2.49 during the pre-market trade today.
At the same time, both Goldcorp Inc. (USA) (NYSE:GG) and AngloGold Ashanti Limited (ADR)
(NYSE:AU) received the much-needed boost from Argentine President, Mauricio Macri, who exempted these gold mining companies from paying export taxes. Both the companies have exposure in Argentina through their stake in Argentina-based companies.
