Gold miners are headed for their best week in nearly five months on the back of a sharp jump in the yellow metal.
The NYSE Arca Gold BUGS index, consisting of 17 gold miners including Barrick Gold and Goldcorp that are listed on a major US exchange, is up 5.5 per cent so far this week — leaving it on track for its biggest weekly gain since the week ended September 1.
Barrick Gold shares rose 1.6 per cent to $15.07, Goldcorp shares climbed 1.4 per cent to $14.98, Newmont Mining shares climbed 2.9 per cent to $41.47 and Randgold Resources shares were up 2.8 per cent to $102.80.
Gold miners have advanced on the back of a rally in the precious metal, which is up 1.6 per cent so far this week. On Wednesday, it was tracking its highest close since August 2016.
It was weakness in the US dollar, the currency in which gold is denominated, that helped fuel the yellow metal’s advance this week. Indeed, the dollar index, a gauge of the buck against a basket of peers, is down 1.4 per cent so far this week and is headed for its sixth straight weekly loss — the longest such streak since 2010.
The dollar lurched lower following remarks from US Treasury secretary Steven Mnuchin, who said at Davos that weakness in the buck would be good for US trade in the short term.
The broader NYSE Arca gold miners index, which includes 50 companies on a major stock market accessible by foreign investors, is up 3.6 per cent this week and headed for its best week since Dec 22.
Source: FT.com
