Goldcorp Inc. (USA) (GG), SPDR Gold Trust (ETF) (GLD), Yamana Gold Inc. (USA) (AUY): Will the Gold Market Continue to Heat Up?

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On the one hand,  production costs continue to rise. On the other, the price of gold is still lower than last year’s. These two trends are likely to reduce Yamana Gold Inc. (USA) (NYSE:AUY)’s and Goldcorp Inc. (USA) (NYSE:GG)’s profit margins and revenues in the coming quarters.

Bottom line

Despite the recent rally in gold prices, it’s still too soon to call it a comeback. The upcoming decision of the FOMC could determine the future trajectory of gold. Finally, gold producers will continue to struggle to create revenue growth if the price of gold resumes its downward trend.

The article Will the Gold Market Continue to Heat Up? originally appeared on Fool.com and is written by Lior Cohen.

Lior Cohen has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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