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Yahoo
17-07-2025
- Business
- Yahoo
This Dividend Stock Has Doubled in 2025. Is It Still a Buy?
With a year-to-date gain of over 105%, Anglogold Ashanti (AU) has outperformed most of its gold mining peers, and its returns are nearly twice that of the VanEck Gold Miners ETF (GDX), which invests in a basket of gold mining companies. AU has an attractive dividend policy, which means that along with the capital gains, investors get rewarded by the dividend payouts. In this article, we'll discuss whether Anglogold Ashanti remains a buy despite having more than doubled in 2025. The Bull Case for Gold Prices Being a commodity producer, AU's fortunes are tied to the commodity that it produces, which is gold (GCY00) in this case. The precious metal has come off its highs as trade tensions have eased and President Donald Trump has seemed to take a more reconciliatory tone on tariffs. The geopolitical situation has also gotten better, even as the Middle East peace deal looks fragile. More News from Barchart Retirement Ready: 3 Dividend Stocks to Set and Forget Forget Chasing Yields: These 3 Dividend Stocks Are Built to Last This Blue-Chip Stock Is 20% Off Its Highs. Should You Buy the Dip? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! However, I believe gold is currently in a structural bull market as the geopolitical turmoil looks here to stay. Also, there could be some short-term bullishness as the Aug. 1 tariff deadline looms. While a section of the market has been pivoting to Bitcoin (BTCUSD) amid the uncertainty, many investors remain hooked to gold. There is significant appetite for alternative assets among retail investors, and a recent survey by brokerage eToro conducted on 10,000 self-directed investors showed that 58% either recently invested in gold or crypto, or plan to do so in the near term. Invest in Gold American Hartford Gold: #1 Precious Metals Dealer in the Nation Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase Thor Metals Group: Best Overall Gold IRA Central banks have emerged as key gold buyers and have collectively bought 1,000 metric tons annually for the last three years, which, for context, is twice what they bought every year on average in the preceding decade. Consultancy firm Metals Focus predicts that while the central bank gold buying would dip year-over-year in 2025, the number would be ahead of 1,000 metric tons for the fourth consecutive year. In its annual report last month, Metals Focus said that the trend toward de-dollarization remains in place. It added, 'If anything, President Trump's unpredictable policy stance, his public criticism of [Federal Reserve Chair] Jerome Powell and the deteriorating U.S. fiscal outlook have further eroded confidence in the U.S. dollar and Treasuries as ultimate safe-haven assets.' Anglogold Ashanti Looks Like a Good Buy Gold remains a preferred hedge for many retail investors as well as central banks, and its appeal has only increased after the last few years of stellar gains. Within the gold mining space, Anglogold Ashanti is one name that investors can consider despite its breathtaking rally this year. Firstly, the company has managed to lower its unit production costs, and its all-in sustaining costs (AISC) were $1,640 per troy ounce at the group level in Q1 2025, which is quite healthy. The company expects its group AISC to be between $1,580-$1,705 per troy ounce in 2025 and 2026. Anglogold Ashanti trades at a forward enterprise value-to-earnings before interest, tax, depreciation, and amortization (EV-to-EBITDA) of 4.84x, which looks quite attractive and is below many of its peers. AU has deleveraged its balance sheet, and the company's adjusted net debt-to-EBITDA was a mere 0.15x at the end of March. It has been optimizing its portfolio and sold stakes in some of its tier 2 assets, which by definition have higher per-unit costs. In Q1, around two-thirds of Anglogold Ashanti's production was from tier 1 assets, and the company expects the share to rise further as Obuasi ramps up operations and its Cuiaba mine moves to tier 1. While AU has historically traded at a discount to peers like Newmont Mining (NEM) and Agnico Eagle Mines (AEM), deleveraging and portfolio optimization should help narrow that gap. AU Has a Variable Dividend Policy Anglogold Ashanti currently pays a quarterly dividend of $0.125 per share. In addition, at the end of the year, it intends to top up the dividend to pay 50% of its free cash flow to investors. If gold prices continue at these levels, Anglogold investors can expect a juicy payout. The company generated $403 million of free cash flow in Q1, and analysts expect the metric to come in at $2 billion in 2025 and $2.4 billion in 2026. While these are still estimates and not official guidance, AU should be able to generate stellar cash flows in the medium term, given the positive outlook for gold prices. At the company's current market cap of $20.1 billion, a $1 billion payout (assuming a 50% payout on $2 billion free cash flows) implies a forward dividend yield near 5%, which is quite healthy. Overall, for someone looking to buy a gold stock with a high dividend yield, Anglogold Ashanti looks like a good fit. As gold prices continue to trade at elevated levels, AU can deliver decent capital gains along with a fat dividend payout to investors over the next couple of years. On the date of publication, Mohit Oberoi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. 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Business Insider
16-07-2025
- Business
- Business Insider
Gold Prices Shine On as Russian Tariff Threat Hits Home
Gold prices were looking shinier today on renewed tariff and geopolitical fears. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Spot gold rose 0.6% to $3,361.99 per ounce in early trading with U.S. gold futures up 0.4% to $3,371.30. Safe Haven Returns Threats from President Trump to impose tariffs on the EU and other nations such as Mexico were the main driver enticing nervous investors back to the safe haven of gold. The President's threat to impose tariffs on Russia, potentially reaching 100%, in order to drive it towards making a deal to end hostilities in the Ukraine was another contributory factor. A report in the Financial Times that the President had even asked Ukraine whether it had the capacity to strike Russia's capital Moscow is also likely to have hit the geopolitical fear target. Trump had appeared to be more friendly toward Russia than Ukraine since the start of his new term in office, but new shipments of arms to Ukraine and a 'disappointment' in President Putin's attitude toward peace is leading to an evolution in his thinking. Whether that makes the world a safer place or not is another extra complication for investors. Support for Gold 'Gold enjoys plenty of supportive factors, from expectations for Fed rate cuts, U.S. President Donald Trump's tariff threats, as well as persistent geopolitical and economic risks,' said Han Tan, chief market analyst at As one can see below the technical indicators behind the case for gold are strong. Such uncertainty this year has already helped drive gold-linked ETFs such as the SPDR Gold Shares (GLD), up 27% in the year-to-date and the VanEck Gold Miners ETF (GDX) up 54%. Silver prices are also glistening today. Spot silver gained 0.4% to $38.28 per ounce, after hitting its highest level since September 2011 yesterday. 'If the current gold to silver price ratio is maintained, at gold prices above $3,440/oz, we will see silver above $40/oz,' said WisdomTree commodities strategist Nitesh Shah.
Business Insider
10-07-2025
- Business
- Business Insider
Gold Loses its Shine as Trump Tariff Threats and Rate Outlook Shake Markets
Gold prices dimmed today on expectations that U.S. interest rates are unlikely to be cut later this month. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Gold futures were 0.5% lower at $3,300.50 an ounce, while spot gold retreated 0.9% to $3,295.53 per ounce. Midas Untouched Investors lost the Midas touch because of fears over rising inflation. That has mostly been driven by President Trump's threat to impose 10% tariffs on BRICS nations, and the warning to 14 countries including Japan and South Korea of planned tariff increases set to take effect on August 1. Expectations that such tariffs could add to inflationary pressures have pushed U.S. yields higher, reinforcing bets that the Federal Reserve may delay any potential rate cut. It makes its next decision on July 30. Generally, the gold price goes up when interest rates go down, and down when rates go up. 'The Fed Fund Futures market is expecting just less than 2 rate cuts for the rest of this year. Some analysts think that the Fed will scale back rate cuts, as tariffs weigh on the inflation outlook,' said Kathleen Brooks, research director at XTB. Marex analyst Edward Meir said that a stronger dollar and higher Treasury yields were putting pressure on gold. The U.S. dollar strengthened, hitting a two-week high. Yields on 10-year U.S. Treasuries also remained elevated, near their highest levels in three weeks. Safe Haven Higher yields tend to reduce the appeal of non-yielding assets such as gold, while a firmer dollar makes gold more expensive for holders of other currencies. But there is still hope for gold, which is traditionally seen as a safe haven in troubled times. There are still concerns over the impact of tariffs and whether it could lead to a global economic slowdown. Worries over geopolitical events in the Middle East, Asia and Europe also remain current. Such uncertainty this year has already helped drive gold-linked ETFs such as the SPDR Gold Shares (GLD), up 27% in the year-to-date and the VanEck Gold Miners ETF (GDX) up 56% over the same period.
Yahoo
26-06-2025
- Business
- Yahoo
Is Gold Finally Topping? Too Late to Buy Gold?
Could gold finally be topping out here? The base metal has doubled since bottoming out in November 2022. There have been only a few pullbacks along the way. They've been so mild that the last time gold hit its 200-day moving average was November 2024. Today's action came down to test the 50-day, something that hasn't happened since May 16th. While it does feel a bit 'toppy' I can't help but point out the series of higher lows the stock has consistently put in. Even a bit deeper move through the 50-day would still see gold in an uptrend. I'd need to see a break of $3,120, the May low for a reversal in the short-term. A little bit of a consolation would be healthy. Let's take a look at not only the SPDR Gold Trust (GLD) but also the VanEck Gold Miners ETF (GDX) and the VanEck Junior Gold Miners ETF (GDXJ). Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes. Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points. Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends. Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move. Dave Bartosiak's technical analysis approach adds depth to our understanding of Gold's stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR Gold Shares (GLD): ETF Research Reports VanEck Gold Miners ETF (GDX): ETF Research Reports VanEck Junior Gold Miners ETF (GDXJ): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-06-2025
- Business
- Yahoo
Gold Miner ETF (GDX) Hits New 52-Week High
For investors seeking momentum, VanEck Gold Miners ETF GDX is probably on the radar. The fund just hit a 52-week high and has moved up 65.8% from its 52-week low of $32.84 per share. Are more gains in store for this ETF? Let's take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed: Market Vectors Gold Mining ETF offers exposure to companies involved in the gold mining industry. Canada firms make up 43.3% of the portfolio, while U.S. and Australia firms take the next spots with 16% and 11.7% share, respectively. GDX charges just 51 bps in fees and expenses (see: all the Materials ETFs here). The gold mining sector of the broad stock market has been an area to watch lately, given the rally in the metal's price. Escalating tensions between Israel and Iran raised the appeal for safe-haven demand. The yellow metal serves as a hedge against market turmoil and is often used as a means of preserving wealth during times of financial and political uncertainty, typically performing well when other asset classes struggle. GDX has a weighted alpha of 69.36 and a 20-day volatility of 30.84%, which shows that there is still some promise for investors who want to ride on this surging ETF. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report VanEck Gold Miners ETF (GDX): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
