Gold Pulls Back As Near Term Traders Book Profits

Gold prices continued to march up undeterred overnight as a 1.5% gain brought the metal to a fresh three-week high. That  momentum softened however after the U.S. Dollar (CURRENCY:US) recovered from five-week lows against other currencies. Gold Futures for August delivery are now down 0.11% to $1,260.95.

Gold to trade rangebound?

HSBC analyst James Steel said that though there is room for gold to move to the upside, it might encounter certain short-term roadblocks. He anticipates traders with a short term investment horizon to book profits from the current rally in gold. UBS Wealth Management analyst Dominic Schnider holds the opinion that gold will trade range-bound until it gets a clear signal higher. Forthcoming labor reports in the U.S. as well as other key economic indicators and the Federal Open Market Committee meeting will be crucial to set the trajectory for gold, added Schnider.

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Burgeoning interest in gold miners

A recent Wall Street Journal Report has thrown light on how gold miners like Barrick Gold Corporation (NYSE:ABX) and other are gaining traction from fund managers. According to reports, Soros Fund Management, led by George Soros, has recently upped its stake in gold mining companies on the back of gloomier global economic outlook.

Sandstorm Gold Ltd (NYSEMKT:SAND) released a corporate update, according to which it has amended its credit facility. The company noted that it has successfully extended its revolving credit line by four years to July 2020. Such an amendment will enable Sandstorm to borrow up to $10 million towards acquisition goals.

Seabridge Gold, Inc. (NYSE:SA) and SnipGold Corporation jointly released a statement saying that both ISS Proxy Advisory Services and Glass, Lewis & Co. believe that Snipgold’s shareholders should vote in favour of an acquisition deal to allow Seabridge to acquire all outstanding and issued shares of SnipGold. The shareholders are due to vote during an Annual General and Special Meeting held on June 15.

Note: This article is written by Adam Russell and originally published at Market Exclusive.