Although gold prices increased recently and a majority of the analysts interviewed by Bloomberg remain bullish on the commodity in the short term, we have a neutral rating on Newmont Mining Corporation (NEM). We believe the company has a strong base of operations but the rising costs, particularly at its APAC operations, and declining production remain as concerns for NEM.
Recent Developments in Gold:
On speculations that there will be more stimulus measures in the wake of President Obama's re-election, gold surged to a three-week high and the precious yellow metal is set to achieve its highest weekly gain since January 2012.
Gold ETFs tracked by Bloomberg surged to an all-time high of 2,596.1 metric tons, valued at $144.5 billion. This year gold prices rose by 11 per cent, and have been rising for 12 straight years, the longest upward trend in at least nine decades.
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