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Goldman Sachs boosts gold forecast to $2300
Spot gold rose as high as $1981 in a surge early in Asian trading today but was hit hard in two waves of selling afterwards, knocking it down to $1907 at the lows. The dip buyers stepped in there and have lifted it back to $1934, down $7 on the day.
Goldman Sachs is adding to the bullish calls today, raising its 12-month forecast to $2300 from $2000 previously.
"Real concerns around the longevity of the US dollar as a reserve currency have started to emerge," wrote Goldman strategists in a note. "Gold is the currency of last resort, particularly in an environment like the current one where governments are debasing their fiat currencies and pushing real interest rates to all-time lows."
A key part of their bullish call is from the Fed, which is shifting to an inflationary bias. They may allow inflation to accelerate beyond 2%.
Given the backdrop, there is "a greater likelihood that at some time in the future, after economic activity has normalized, there will be incentives for central banks and governments to allow inflation to drift higher to reduce the accumulated debt burden," they said.
I'm confident we will get to £3 mark soonish although nothing goes up in a straight line and every technical indicators is showing overbought state, expecting tiny retracement today/tomorrow and testing highs from May
XAU/USD 20th of May- $1745/oz
HGM 20th of May- intraday high of 282p
__________________________________
XAU/USD 22nd July - $1850-$1866/oz
HGM 22nd July - 252p
go figure..
with most recent 4hr candle closing above HGM 243p-245p resistance area formed at the end of May along with smashing triple top at the same area I reckon it's our time to test ATH withing next couple days/weeks
still a lot to catch up comparing to CEY or HOC, sp should be hovering around £3 mark
from +6% to to-2% with great Q2/H1 results released and record levels POG, that's AIM ****** manipulation at its best, seriously wtf
Record-High Gold Prices Are in Sight
Read more at: https://www.bloombergquint.com/business/record-gold-in-sight-as-virus-woes-keep-prices-above-1-800
Copyright © BloombergQuint
The average realised gold price was US$ 1,723 per ounce in the second quarter and US$ 1,655 in the first half of the year.
Seems like HGM will be smashing record profits each quarter.looking forward for Q3/Q4 results with price of gold >$1800/ounce
@TigerByTheTail
Hmm...so that's why every single financial statement, annual report, revenue and profit statements,royalties, aisc or any financial metrics in matter of fact or even current gold price shown on CEY website is shown in USD.. makes perfect sense now!
Company is selling its products in USD, capital employed is in USD so sorry but I simply don't see this correlation to gold price in GBP.
It's like with CFDs, underlying markets which are affecting CEY share price are gold spot/futures quoted in USD.
I've dropped CEY an email regarding this matter, let's see what they will say :)
@Sotolo
Totally disagree with you. As I proven to you earlier, your calculations regarding proifit/revenue are totally incorrect.
So no, it's not 8% difference in profit as gold price denominated in GBP is totally irrelevant for CEY, in fact it's it's irrelevant for any gold miner as USD is the gold trading currency and reference point, noone gives a two f@cks about GBP.
Try to buy gold or any metals bullion- USD is king and coins/bullion prices are always derived from gold USD prices, even in GBP or EUR
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@Sotolo
Once again, your 25% profit difference figure is totally incorrect!
Let's make a calculations with figures similar to CEY
Company production in given time: 100k ounces
AISC: 900$ per ounce
Price of gold A): 1765$-recent highs
Price of gold B): 1700$
Profit A) 176500000$(total rev)-90000000$(aisc)= 86500000$
So profit with POG at 1765$ and 100k ounces production is 86500000$ -eighty six million ,five hundred thousand
Profit B) with POG @1700
170000000$(rev)-90000000$(aisc)= 80000000$= eighty million
Profit A) 86500000$
Profit B) 80000000$
Difference : 7.80%
Where is your 25% coming from?
@rebess
"Centamin maintains its 2020 full year guidance[8], targeting production between 510,000-540,000 ounces of gold (production weighted 55% to H2), at cash costs between US$630-680 per ounce produced and AISC between US$870-920 per ounce sold"
Warning? Talking ******
@sotolo
How on earth did u come up with those profit figures? Look at the profit forecast for this year and figures related to assumed price of gold and current price of gold.
CEY at current POG levels is smashing it’s turbover/ profits forecast
2019 : " Average realised gold price US$/oz 1,399"
2020:
https://www.kitco.com/news/2020-02-03/Gold-to-average-above-1-550-in-2020-silver-above-18-LBMA-survey.html
That was in Feb..now POG is about to hit $1800 so 2020 for CEY, with no debt/hedge looks pretty optimistic