Gold prices started dropping since early 2019, which in turn, caused the Australian Stock Exchange-listed miner- Evolution Mining Limited (ASX: EVN) to correspond with the prices. The gold prices plunged from the level of US$1346.79 (Day’s high on 20th February 2019) to the US$1280.93 (Day’s low on 7th March 2019) initially.
The factor which contributed significantly to the fall was the progressive trade-talks between the two significant economies of the world, i.e., the United States and China. The trade-talks raised optimism among market participants over the improvement in the global economic conditions, which as per the latest report from the International Monetary Fund, is deteriorating. The progressive trade talks contributed towards an improvement in the global economic figures, which in turn exerted pressure on gold prices.
The shares of the Evolution Mining undermined the fall in gold prices, and the share prices of the company started to move in a downtrend from the level of A$3.900 (Day’s high on 20th February 2019) to the level of A$3.330 (Day’s low on 5th March 2019).
After the initial drop in gold prices to the level of US$1280.93, the prices started recovering amid global cues such as Eurozone crisis, falling of long-term bond yield below short-term yield, and failure of U.S-North Korea summit, etc.
In the wake of such events, the gold prices recovered to the level of US$1324.57 (Day’s high on 25th March 2019), and the share prices of Evolution Mining took the course upside and made a high of A$3.830 (Day’s high on 28th March 2019).
After that, the gold prices took a jab over the improved manufacturing activities in China and the United States, the better job creation in the United States and Trump’s demand for slashing the interest rate.
The gold prices nose-dived from US$1324.57 to the level of US$1266.35 (Day’s low on 2nd May 2019). Correspondingly, the share prices of Evolution Mining plunged to the same depth, falling from the level of A$3.830 to the level of A$3.040 (Day’s low on 3rd May 2019).
At the present status quo, the gold prices started recovering amid Trump’s roar over tariff increase, and further confirmation of the increment in tariff on $200 billion worth of Chinese goods from 10 to 25 per cent. The prices of the safe-heaven improved from the level of US$ 1266.35 to the present high of US$1288.01 (as on 8th May GMT-4, 3:34 AM New York time)
The market participants correspondingly saw the share prices of the company recovering from its recent low of A$3.040 to the present high of A$3.260 (as on 8th May 2019 AEST).
The gold yearly rate of return stands around -2.24% (on a closing basis from 7th May 2018 to 7th May 2019), while the annual return on the shares of the company stands at -4.53%.
Investors may further monitor how the company responds to the needle moving on the gold price movement.
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