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Gold Prices Down on Brighter U.S. Data, Fed Rate-Increase Worries: Gold Fields (GFI), Goldcorp (GG), Randgold Resources (GOLD), Gold Resource (GORO)

Gold prices extended their three-week lows on Friday, as investors continued to cut holdings of the precious metal on expectations of tighter U.S. monetary policy.

The most actively traded contract, for December delivery, fell $5.90, or 0.5%, to settle at $1,141.40 a troy ounce on the Comex division of the New York Mercantile Exchange. This was the lowest close since Oct. 5, when prices settled at $1,137.60 a troy ounce.

Investors have flocked out of the gold market after Federal Reserve officials on Wednesday said they would use their December policy-setting meeting to decide whether the U.S. economy has improved enough to warrant higher interest rates. The communiqué was the clearest signal yet that the U.S. central bank might raise interest rates before the year is out.

“Gold is caught in this quagmire since the Fed came out and said it’s looking closely at the interest rate scenario,” said Ira Epstein, a broker with Linn & Associates in Chicago.

Gold doesn’t earn interest and would struggle to compete with yield-bearing assets like Treasury bonds once rates rise.

A stronger-than-expected reading of Chicago-area manufacturing activity also weighed on gold prices. The Chicago purchasing managers index reached 56.2 in October from 48.7 in September. A reading above the 50 level points to expansion in factory activity, while a reading below that mark points to contraction.


In the last trading session, Gold Fields Limited (ADR) (NYSE:GFI)’s price moved -30.23% below its 200 day moving average, changing hands as low as $2.53 per share. The stock is currently trading -11.31% down its SMA 50. The worst hit in its 52 week range is $ 2.35 per share, with $ 6.01 being the 52 week best price, which compares with a latest closing price of $ 2.53. The Beta of this stock is 0.08.

Goldcorp Inc. (USA) (NYSE:GG) has a market value of $ 10.92B. It employs 10652 people, over the last 12 months has generated revenue of $ -2205.00M and a net income of. The latest closing price of $ 12.82 was down -6.92% from the 50-day moving average.


For Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) a return on equity of 6.70% was realized due to the financial situation. Last twelve months earnings per share reached a value of $ 2.26. Last fiscal year, $ 0.60 has been paid in form of dividends to investors. The stock closed at $ 66.87, up $ -0.13 or -0.19% from previous close and at a distance of -1.36% from 20-day simple moving average.

Shares of Gold Resource Corporation (NYSEMKT:GORO)The stock has a 52 week low of $ 32.24% and a 52 week high of $ -40.52%. The company has a market cap of $ 138.70M. The P/S ratio is 1.38 and P/B ratio 1.49. The beta value is 1.11. The stock’s RSI amounts to 46.34.