Stocks to keep an eye on as gold prices drop - Kalkine Media

May 31, 2023 01:38 PM BST | By Manu Shankar
Follow us on Google News:


  • The price of yellow metal dropped to its lowest level since 17 March, trading at £1,586.
  • Many experts are now predicting that gold will slide further.

With the strengthening of the US Dollar in anticipation of an interest rate hike by the US Federal Reserve, gold prices witnessed a drastic fall on Tuesday. The price of yellow metal dropped to its lowest level since 17 March as it was trading at £1,586.

The drop is in anticipation that the Fed Reserve will increase the interest rate by 25 basis points when its monetary committee meets next month in June. According to the Bureau of Economic Analysis data, the rate hike is on the back of a rise in US consumer spending. Consumer spending rose 4.4% from April 2022.

Many experts are now predicting that gold will slide further, and with silver’s inverse correlation with the dollar and Fed interest rates relative to gold, the price of metal may remain lull. With the concerns about the existing cost of living and inflation persisting, many investors may turn towards gold as a safe-haven. Investors often explore purchasing shares of gold firms in the hope that it may give better returns compared to physical metal.

Amidst this, let’s explore 3 AIM gold stocks that investors may keep an eye on.

Goldplat plc (LON: GDP)

UK-based Goldplat plc is primarily a mining services firm which engages in global gold recovery operations. The FTSE AIM All-share constituent, Goldplat plc, was witnessing a dip of -1.29% and was trading at 7.65 at the time of writing on 31 May 2023. The GDP stock enjoyed a market cap of XX13.00 with a profit-to-earnings ratio of 4.09. It had given its shareholders a negative return of -6.63% and -24.02% to its shareholders.

Caledonia Mining Corporation Plc (LON: CMCL)

The Caledonia Mining Corporation Plc was witnessing a downtrend as it was down by -1.92% and was trading at GBX 1020 at the time of writing on 31 May 2023. The CMCL on Wednesday was holding a market cap of £199.56 million with a profit-to-earnings ratio of 26.44. The FTSE AIM All-Share listed gold mining company has given its shareholders a negative return of -5.50% and -3.38% annually and on a YTD basis.

Scotgold Resources Ltd (LON: SGZ)

The FTSE AIM All-Share constituent, Scotgold Resources Ltd, held a market cap of £12.08 million with a negative price-to-earnings ratio of -1.23. Scotgold Resources Ltd, on 31 May 2023, was trading at GBX 15.00 and was down by -4.47%. The All-Share stock has given its shareholders returns of -79.26% and -76.04% annually and YTD. 


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Top LSE Listed Companies