Gold Prices Rise as Dollar and European Equities Fall

Strategic Insights -

Concerns over China's recent devaluation of its currency are driving investors to turn to gold as a safe-haven asset, causing gold prices to rise for the fifth consecutive day. Goldcorp, a Vancouver-based gold producer, is trading up 5.4% on Wednesday as gold futures for December delivery rise 1.02% to $1,119 an ounce. The weaker dollar is also contributing to the increase in gold prices, making the precious metal cheaper for those using other currencies.

Key Takeaways:

  • Gold prices have risen for the fifth consecutive day, driven by concerns over China's currency devaluation and the weaker dollar.
  • Goldcorp, a Vancouver-based gold producer, is trading up 5.4% on Wednesday, with its stock price rising to $15.26.
  • Gold futures for December delivery are up 1.02% to $1,119 an ounce, benefiting from the weaker dollar.
  • The People's Bank of China set the midpoint reference rate for the yuan lower than the 2% valuation from Tuesday, causing global equities to fall.
  • Goldcorp announced a quarterly dividend of 2 cents a share on Monday, payable on August 28 to all shareholders of record as of the close of business on August 20.
  • TheStreet Ratings Team rates GOLDCORP INC as a Sell with a ratings score of D+, citing disappointing return on equity and historical performance.

Statistics:

  • Gold prices have risen for 5 consecutive days.
  • Goldcorp stock price has risen 5.4% to $15.26 on Wednesday.
  • Gold futures for December delivery have risen 1.02% to $1,119 an ounce.
  • The dollar has weakened, making gold cheaper for those using other currencies.
  • The People's Bank of China set the midpoint reference rate for the yuan lower than the 2% valuation from Tuesday.
  • Goldcorp reported a quarterly dividend of 2 cents a share, payable on August 28.

Sources:

  • TheStreet
  • Reuters (http://www.reuters.com/article/2015/08/12/markets-precious-idUSL3N10N2W720150812)
  • TheStreet Ratings Team
  • Goldcorp Inc.