Gold Mining Sector Turns Bearish Following Economic Data: This ETF Offers Exposure When Gold Rebounds
Portfolio Pulse from Melanie Schaffer
Spot gold prices declined by about 1.25% on Thursday, following the release of advance estimates data by the U.S. Bureau of Economic Analysis. The data showed a 2.4% annualized growth rate in the U.S. economy for Q2 2023 and a decline in unemployment, indicating a strong labor market. This is bearish for gold and gold miners. However, spot gold managed to hold above the 50-day simple moving average, suggesting a potential rebound. The Sprott Gold Miners ETF (SGDM) offers exposure to several gold miners and may be a good investment when the sector turns bullish.
July 27, 2023 | 7:15 pm
News sentiment analysis
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NEGATIVE IMPACT
Agnico Eagle Mines (AEM) is one of the three largest holdings within SGDM, weighted at 9.73%. The bearish sentiment in the gold mining sector is likely to negatively impact AEM in the short term.
As one of the largest holdings within SGDM, AEM's performance is likely to be negatively impacted by the bearish sentiment in the gold mining sector due to strong US economic data.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Franco-Nevada Corp (FNV) is one of the three largest holdings within SGDM, weighted at 10.4%. The bearish sentiment in the gold mining sector is likely to negatively impact FNV in the short term.
As one of the largest holdings within SGDM, FNV's performance is likely to be negatively impacted by the bearish sentiment in the gold mining sector due to strong US economic data.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Barrick Gold Corp (GOLD) is one of the three largest holdings within SGDM, weighted at 11.04%. The bearish sentiment in the gold mining sector is likely to negatively impact GOLD in the short term.
As one of the largest holdings within SGDM, GOLD's performance is likely to be negatively impacted by the bearish sentiment in the gold mining sector due to strong US economic data.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Sprott Gold Miners ETF (SGDM) offers exposure to several gold miners and may be a good investment when the sector turns bullish. The ETF was dropping over 3% on Thursday, attempting to hold support above the 200-day simple moving average.
The bearish sentiment in the gold mining sector due to strong US economic data is likely to negatively impact SGDM in the short term. However, the ETF's ability to hold above the 200-day simple moving average suggests potential for a rebound.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100