The Zacks Analyst Blog Highlights: Kinross, Royal Gold, AngloGold, Kirkland And Alamos
Zacks Investment Research | Sep 22, 2019 11:02PM ET
For Immediate Release
Chicago, IL –September 23, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Kinross Gold Corp. (NYSE:KGC) , Royal Gold Inc. (NASDAQ:RGLD) , AngloGold Ashanti Ltd. (NYSE:AU) , Kirkland Lake Gold Ltd. (TSX:KL) and Alamos Gold Inc. (TSX:AGI) .
Here are highlights from Friday’s Analyst Blog:
Gold Price Rebounds on Global Growth Concerns: 5 Top Picks
Gold prices are set to record the first weekly gain, reversing the downtrend of the past one month. On Sep 19, spot gold was up 0.3% at $1,503.20 per ounce and U.S. gold futures were also up 0.3% at $1,510.9 per ounce.
Behind the Uptick
A second rate cut by the Fed just a day before and a weaker U.S. dollar are the primary reasons for gold’s uptick. The lower the interest rates, the lesser will be the opportunity cost of holding the non-yielding bullion, making gold attractive for investors holding other currencies.
Gold price climbed to more than 1,500 per ounce for the first time in August since April 2013 on concerns related to the prolonged U.S.-China trade war and a global economic slowdown. Buying pressure on gold is likely to remain firm as investors will focus on precious metals as a store of wealth and hedge against market turmoil.
Notably, at the end of 2018, around $8 trillion was invested in bonds with negative returns. However, this figure has increased substantially to $16 trillion so far in 2019. This clearly indicates worldwide slowdown fears among market participants.
Trimmed Projections for Global Economic Growth
On Sep 19, the Organization of Economic Co-Operation and Development (OECD), an intergovernmental economic group, projected that the world economy will grow just 2.9% in 2019, the lowest forecast since 2009. The OECD forecast 4% global growth in 2019 just 18 months ago.
The International Monetary Fund (IMF) reduced its growth forecasts for the global economy for 2019 and 2020. It predicts growth of 3.2% in 2019, down from its April forecast of 3.3%. The world economy is expected to witness growth of 3.5% in 2020, lower than its previous projection of 3.6%.Moreover, the World Bank also squeezed its global growth forecast for 2019 to 2.6% from the previously forecast 2.7% growth.
All three economic organizations have cited the tariff war between the United States and China as the primary reason for global slowdown given its adverse effect on exports and manufacturing. Additionally, geopolitical problems stemming from Brexit and Middle East have intensified fears of a global downturn.
Get The News You Want
U.S.-China Trade Conflict Continues
On Sep 19, Michael Pillsbury, a key White House adviser said the Trump administration is set to increase tariff pressure on China if a trade deal is not agreed upon soon as Washington has so far imposed only “low level tariffs” on China.
The hard statement came at a time when the two sides are going to meet this week in order set stage for a high-level meeting to reach at least an interim trade deal. Further escalation of tariff will be disastrous for a struggling Chinese economy as well as for the U.S. economy, which has lost its pace to a large extent.
Our Top Picks
At this stage, it will be prudent to invest in gold stocks with strong growth potential. We have narrowed down our search to six such stocks, which soared in the past three months. Each of these stocks carries a Zacks Rank #1 (Strong Buy). You can see Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.