Sibanye Gold Ltd (ADR) (NYSE: SBGL), SPDR Gold Shares (NYSEARCA: GLD) & Franco Nevada Corp (NYSE: FNV) Performance Amidst Rising Gold Prices


Sibanye Gold Ltd (ADR) (NYSE: SBGL), SPDR Gold Shares (NYSEARCA: GLD) & Franco Nevada Corp (NYSE: FNV) Performance Amidst Rising Gold Prices

Gold prices around the globe showed early gains and remained stable as the US dollar continued to remain firm. The prices for the first time traded above the 17-month low after tension over the US-China trade started brimming. The spot gold rate worldwide remained steady at around $1,213.05/ounce after previously soaring up to $1217.85/ounce during early trade. Incidentally, the US dollar has softened against Euro and Yuan.

Furthermore, the European Parliament is thinking of easing the new liquidity rules for financial institutions and banks that trade in gold after success of the London Bullion Market Association (LBMA) campaign became successful.

US-China Trade Tension Lead To Hike In Gold Prices

The American gold futures experienced a slowdown of 0.2% at $1,222.4/ounce. Gold seems to be leading the market in terms of price hike. After gold, the prices of silver, and platinum also increased due to an increase in offtake by coin makers and industrial units. Silver rose 0.5%, platinum showed a rise of 0.2% whereas palladium fell 0.3%

The surge in gold prices has been primarily affected by the proposed imposition of retaliatory tariff by China on the U.S. goods of worth $60 billion. The Chinese government has imposed this tariff in retaliation to the pressure ratcheted up by the Trump government through the imposition of 25% higher tariff on Chinese imports of $200 billion.

Even though the US-China trade tensions can cause a long-term effect on the global trade as of now, the gold companies are really doing well. Major firms including Sibanye Gold Ltd (ADR) (NYSE: SBGL), SPDR Gold Shares (NYSEARCA:GLD) & Franco Nevada Corp (NYSE: FNV) have shown improvement in their performance.

Sibanye Gold showing ‘buy’ signal

The current indicators for Sibanye Gold shows buy signal. From the Short-Term Technical Indicators to the 7-Day Average Directional Indicator & 20-Day Moving Average, all the indicators say that this is the right time to buy stock of Sibanye Gold. The earlier trading session of the company closed at $2.56 and the average Volume of Sibanye Gold in the last session was 3.72 million. Sibanye Gold has a market capitalization of 1.51 billion.

Another major gold company Franco-Nevada recently declared that it’s SQ net income for 2018 was $53.6 million. Although the results were not as expected by the Wall Street, the Toronto-based company declared that it earned a profit of 29 cents/share. The royalty company streaming precious metals registered revenue of $161.3 million during SQ 2018.

Even though the largest gold-backed fund in the world, SPDR experienced a sudden hike during the booming phase, the company’s shares fell to all-time low since August 2017 at 25,319,951.65 ounces. It indicates the global gold market is going through an unsteady phase but is still performing much better than last year as the first few months of this year were very good for SPDR.

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