Company Overview and News
In this part of the series, we’ll analyze the correlation of the mining stocks to gold. Gold is the most dominant of the four precious metals, and silver, platinum, and palladium are known to closely track the movement in gold. Also, precious metals, though they belong to the equity segment of the market, are more dependent on where precious metals move, especially gold.
Hedge funds increased their net positions in the SPDR Gold Shares ETF (GLD) during the first quarter. However, all isn’t so rosy for the VanEck Vectors Gold Miners ETF (GDX). During the quarter, GDX’s holdings fell 15.4% sequentially.
We're at the same levels we were at on Tuesday (a bit weaker), when we extensively went over the technicals, so we're not going to do that again. As you can see on the S&P chart, our short at 2,728 on the S&P Futures (/ES) is still holding up and we see no reason to change it today or over the weekend. Similarly, our big shorting hedge on the Nasdaq (/NQ) is still up $2,000 per contract (from 7,000) at 6,900 and our predicted bottom is a $10,000 per contract gain at 6,500 if "sell in May" becomes a thing around the holiday weekend.
Gold has not performed especially well as of late, especially when compared to other assets such as the S&P 500.
Barrick Gold Corporation (ABX - Free Report) has purchased 46,551,731 common shares of Midas Gold Corp. for gross proceeds of roughly $38.1 million in a non-brokered private placement. As a result, Barrick Gold now owns 19.9% of issued and outstanding shares in Midas Gold. Barrick Gold’s latest move supports the continued efforts of Midas Gold to complete a feasibility study and permitting of the Stibnite Gold Project in Idaho.
Precious metals stocks peaked in 2011, then bottomed in late 2015, ahead of the broader bottom in commodity equities.
US ten-year Treasury note yields (IEF) hit a high mark of approximately 3.1% today—a record since July 2011. Yesterday was also an up-day for US yields. The two-year Treasury note yield (SHY)(GOVT) hit a new multiyear high of approximately 2.6%—its highest level since August 11, 2008.
One of the most crucial factors causing a slump in the price of precious metals is the revival of the US dollar. The DXY, which prices the dollar against a basket of six major world currencies, rose 0.68% on May 15. The DXY gained 3.8% over the last month. During the same timeframe, gold fell 4.2%.
After reviving compared to their previous losses, the four precious metals are in negative territory again. The revival of the US dollar had a negative impact on precious metals and mining stocks during the past few weeks. The settling of the market’s unrest could have also caused a withdrawal of haven bids.
Gold ETF investors bought 173.4 tons of gold in 2017, which was 9% higher year-over-year. In 2018 year-to-date, the inflows in gold-backed ETFs have been strong. In times of increased volatility, investors are repositioning their portfolios to include more gold as a volatility hedge. Expectations of a global trade war triggered by President Trump’s import tariffs could lead investors to seek a haven in gold.
VANCOUVER, British Columbia, May 16, 2018 (GLOBE NEWSWIRE) -- Midas Gold Corp. (TSX:MAX) (OTCQX:MDRPF) (“Midas Gold” or the “Company”) today announced that Barrick Gold Corporation (NYSE:ABX) (TSX:ABX) (“Barrick”) has purchased 46,551,731 common shares of Midas Gold in a non-brokered private placement (the “Placement”) at a price of C$1.06 per share for gross proceeds of US$38,065,907. As a result of the Placement, Barrick owns 19.
Barrick Gold Corporation (NYSE:ABX) Bank of America Merrill Lynch 2018 Global Metals, Mining and Steel Conference May 15, 2018 3:30 PM ET
An emerging trend among some big corporations is the melding of their risk and compliance functions with their environmental, social, governance and human-rights programs.
Comex gold futures have a negative weekly chart and weakness is approaching my monthly value level for May at $1,292.7.
Barrick Gold Corporation (ABX - Free Report) declared that the operator of the Pueblo Viejo mine — Pueblo Viejo Dominicana Corporation (“PVDC”) — has inked a 10-year natural gas supply contract with AES Andres DR, S.A. in the Dominican Republic. The move will enable the conversion of the Quisqueya I power generation facility to natural gas from heavy fuel oil. Notably, PVDC is a joint venture between Barrick Gold and Goldcorp Inc.
7h - Asif
Business The company started Square in February 2009 to enable businesses (sellers) to accept card payments, an important capability that was previously inaccessible to many businesses. However, sellers also need innovative solutions to thrive, and Square has since expanded to provide additional products and services to give these businesses access to the same tools as large businesses. This approach aligns with its purpose of economic empowerment, as everything the company do should give sellers accessible, affordable tools to grow their businesses and participate in the economy. Square is a cohesive commerce ecosystem that helps its sellers start, run, and grow their businesses. The company combine sophisticated software with affordable hardware to enable sellers to turn mobile and computing devices into powerful payment and point-of-sale solutions. Square has high seller acceptance rates and fast onboarding, while maintaining low risk and fraud losses as a result of its a...
8h - Asif
BUSINESS TrovaGene is a clinical-stage, precision medicine oncology therapeutics company. The company's primary focus is to develop oncology therapeutics for improved cancer care and to optimize drug development by leveraging its proprietary Precision Cancer Monitoring® (“PCM”) technology in tumor genomics. The company's lead drug candidate, PCM-075, is a Polo-like Kinase 1 (“PLK1”) selective adenosine triphosphate (“ATP”) competitive inhibitor. PCM-075 has shown preclinical antitumor activity as a single agent and synergy in combination with more than ten different chemotherapeutics and targeted therapies, such as Zytiga® (abiraterone acetate), Beleodaq® (belinostat), Quizartinib (AC220), a development stage FLT3 inhibitor, and Velcade® (bortezomib) in Acute Myeloid Leukemia (“AML”), metastatic Castration-Resistant Prostate Cancer (“mCRPC”) and other hematologic and solid tumor cancers. On March 15, 2017, the company announced the licensing of PCM-075, a PLK1 inhibitor...
2018-05-19 - Asif
OVERVIEW Sangamo BioSciences is a clinical stage biotechnology company focused on translating ground-breaking science into genomic therapies that transform patients’ lives using its industry-leading platform technologies in genome editing, gene therapy, gene regulation and cell therapy. Sangamo BioSciences is a leader in the research and development of zinc finger proteins, or ZFPs, a naturally occurring class of proteins found in humans. Sangamo BioSciences has used its knowledge and expertise to develop a proprietary technology platform in both genome editing and gene regulation. ZFPs can be engineered to make zinc finger nucleases, or ZFNs, proteins that can be used to specifically modify DNA sequences by adding or knocking out specific genes, or genome editing, and ZFP transcription factors or ZFP TFs, proteins that can be used to increase or decrease gene expression, or gene regulation. In the process of developing this platform, Sangamo BioSciences has accrued signific...
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