SPDR Gold Trust (ETF) (NYSEARCA:GLD) and corresponding gold prices rallied for another session today as markets became less convinced of the likelihood of a June rate hike in U.S. Gold Futures for August delivery climbed $16 to $1,263 an ounce, adding 1.3% to three-week highs.
Global outlook also matters
Federal Reserve Chair Janet Yellen’s comments earlier this week have restored a positive outlook for the yellow metal, which was trading under pressure following hawkish comments from the Federal Reserve last month. Frank McGhee, precious metals dealer at Alliance Financial, said that the expectations of rate hike are now shifted to July.
Jessica Fung, metals strategist at BMO Capital Markets, holds the view that sluggish global growth should also make gold appealing as a safe asset besides the Fed’s stance on monetary policy. In other metals, Silver Futures for July delivery also rose 3.75% to $17 during the session.
Gold Fields completes refinancing of debt
In miners, Canadian gold miner Eldorado Gold Corp (USA) (NYSE:EGO) released a press release stating that the Toronto Stock Exchange (TSX) has given the nod for filing it’s Notice with respect to transacting a normal course issuer bid (NCIB) through TSX facilities. The acceptance from TSX will allow Eldorado Gold Corp (USA) (NYSE:EGO) to buy up to 2,081,168 of common shares, which will represent 0.30% of the company’s total outstanding shares. The company will purchase the shares during the period between June 13, 2016, to June 12, 2017, at prevailing market prices. As per the agreement, purchases on a single trading day will not exceed 874,637 shares.
Gold Fields Limited (ADR) (NYSE:GFI) announced the successful refinancing of its $1.44 billion credit facility, which was due in November 2017. The new credit facilities add up to $1.29 billion and will be released in three tranches. Gold Fields Limited (ADR) (NYSE:GFI) further informed that new facilities are refinanced by a syndicate of 15 banks. Interest rates chargeable on new facilities is more or less equivalent to rates chargeable on existing facilities, the company said in the press note.
Note: This article is written by Andy Parker and originally published at Market Exclusive.