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Highlights
- With the strengthening of the US dollar, the price of gold went down on Wednesday, nearly hitting its two-week low.
- During the earlier session, there was a decline of 1% in the gold prices, marking the second successive month of a price fall in May.
With the strengthening of the US dollar, the price of gold went down on Wednesday (1 June), nearly hitting its two-week low. In general, gold has an inverse relationship with the US dollar. On Wednesday, the US Treasury yields, and US dollar were up, while gold futures declined by 0.48% to US$1,839.50 around 3:19 AM GMT. During the earlier session, there was a decline of 1% in the gold prices, marking the second successive month of a price fall in May.
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US President Joe Biden and the Fed’s chair met on Tuesday to discuss the ongoing inflationary crisis. This crisis isn’t limited to the US but is escalating across the globe. The UK is also facing inflationary headwinds and a cost-of-living crisis has been spiralling in the country.
The UK economy might even be headed towards a recession due to a similar stance of monetary tightening adopted by the country, just like the US.
Concerns about aggressive monetary policy tightening and more rate hikes have been increasing in the UK. Amid this chaos, safe-haven investments like gold are on the radar of investors. Instead of buying gold directly, investors can go for purchasing the shares of gold mining companies, which may potentially provide them with better returns as compared to the physical metal.
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Let’s look at 3 AIM gold stocks that investors may keep an eye on.
AEX Gold Inc. (LON: AEXG)
The shares of the Greenland-focussed gold mining business, AEX Gold Inc., were up by 1.12% at 9:45 AM (GMT+1) on 1 June 2022, at GBX 45.00. The AIM-listed company has provided its shareholders with a return of 51.72% over the last one year as of 1 June 2022, while its year-to-date return stands at 30.99%. The company’s current market cap stands at £78.81 million.
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Scotgold Resources Ltd (LON: SGZ)
The shares of the Scotland-focused gold mining business, Scotgold Resources Ltd, were trading at GBX 70.00 at 9:50 AM (GMT+1) on 1 June 2022. The AIM-listed company has provided its shareholders with a return of 20.90% over the last one year as of 1 June 2022, while its year-to-date return stands at 2.80%. The company’s current market cap stands at £41.67 million.
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Goldplat plc (LON: GDP)
The shares of the gold recovery services business, Goldplat plc, were trading at GBX 8.35 at 9:55 AM (GMT+1) on 1 June 2022. The AIM-listed company has provided its shareholders with a return of 16.22% over the last one year as of 1 June 2022, while its year-to-date return stands at 22.72%. The company’s current market cap stands at £14.01 million.