Gold Heading for Biggest Weekly Fall
World Economy

Gold Heading for Biggest Weekly Fall

Gold was heading for its biggest weekly decline in nearly two months.
Several Federal Reserve Bank presidents revealed they had a favorable outlook on the economy and supported gradual adjustments in short-term interest rates, Proactive Investors reported.
If the Fed does go ahead and raise interest rates, the dollar will likely gain strength and weigh down gold as the two generally move in opposite directions.
Shortly before the UK market close, gold was up $4 to $1,267, silver was also marginally up at $17.00, while platinum was down $6 to $1,039.
Africa-focused Acacia Mining PLC gained ground on Friday as heavyweight broker Credit Suisse repeated it’s ‘outperform’ rating on the shares.
The broker also lifted its target price for the mining company by more than 25%, to 380p from 300p.
“Many investors are uncomfortable with the premium multiples that many global gold companies trade on. Acacia is an exception, trading at a low multiple and a discount to our NPV due to its limited track record and a major shareholder overhang,” noted analyst Conor Rowley.
Barrick holds a 64% in the Africa-focused miner, a stake Rowley believes could be sold down over the coming year.
“A large stake sale into the market or to a strategic investor could ultimately be positive for the shares as it would increase the free float and liquidity and could make Acacia a take-out candidate,” he said.
Gold prices have risen nearly 20% since January 1, making the opening months of this year the best time to be a gold bug in three decades. The rise was driven by fears of a recession that sent investors running away from equities into the perceived safety of the yen, government bonds and gold.

Short URL : http://goo.gl/bPsz2n
  1. http://goo.gl/jThcDB
  • http://goo.gl/ekB575
  • http://goo.gl/ack3Qo
  • http://goo.gl/85YC6p
  • http://goo.gl/rFzQ7I

You can also read ...

Business confidence fell to its lowest level since August 2013 and around 7% of companies expected a contraction.
According to data from the International Monetary Fund in...
China Warned of Ballooning SOEs
Former chief of the World Bank Robert Zoellick cautioned China...
New Zealand Q2 GDP Growth Picking Up
New Zealand’s economic growth is expected to have accelerated...
Shrinking unemployment in the US, Japan and the eurozone finally forces companies  to lift wages to retain and attract staff.
Workers in the world's richest countries are getting their...
Saudi Sovereign Fund Secures $11 Billion Loan
Saudi Arabia's sovereign wealth fund said Monday it had...
Lira Eases Against Dollar
Turkey’s lira weakened against the dollar on Monday as...
By 2025 more than half of all current workplace tasks  will be performed by machines.
Robots will handle 52% of current work tasks by 2025, almost...
Myanmar Businesses Want Lower Taxes
Myanmar businesses are urging the government to lower the...