18:20:32 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Barrick Gold Corp
Symbol ABX
Shares Issued 1,778,068,071
Close 2020-07-29 C$ 38.35
Market Cap C$ 68,188,910,523
Recent Sedar Documents

Globe says Kinross, rivals hear 2020 gold price up 28%

2020-07-30 07:44 ET - In the News

See In the News (C-K) Kinross Gold Corp (2)

The Globe and Mail reports in its Thursday, July 30, edition that the gold price has rallied 28 per cent in 2020. The Globe's Scott Barlow writes that the rise in the bullion price has been accompanied by a proportionate move lower in U.S. inflation-adjusted bond yields. Mr. Barlow says the degree of correlation in the relationship is extremely high. There are two reasons for gold to move higher as real yields decline. Under normal conditions, lower yields attract fewer global income investors. This translates into a weaker U.S. dollar because foreign investors are not exchanging as much of their currencies into greenbacks to buy Treasuries. Gold is priced in U.S. dollars, so any drop in the currency immediately pushes up the gold price. The other reason is opportunity cost. When bond yields are high, gold is less attractive to own. When yields are very low, bullion investors are forfeiting less in annual income. The gold price is also tracking the global value of negative yielding government bonds, which makes sense. As a store of value and spending power, negative yielding bonds are a dubious investment option. Gold, at least theoretically, retains the same spending power over the long term.

© 2024 Canjex Publishing Ltd. All rights reserved.