IAMGOLD Corp (NYSE:IAG) hoping to shine through 17% gold price slump
There has been a surge to $1,400/ounce in gold futures. This has been attributed to some concerns that there will be some United States military action in Syria. The other ongoing concern has about the Fed tapering. For a December delivery, Gold futures rose by $8.30 or 0.6% to $1,401.50/ounce in electronic-trade. This erased the Monday loss that was $2.70 or 0.2% on the NYMEX.
The recent gains in Gold rose in Electronic-trade on Monday post the statement from John Kerry, the United States’ Secretary of State. Last week he stated that the United States will hold the government in Syria accountable for using chemical weapons against civilians in the rebel-held areas that are outside Damascus. After Kerry’s announcement, the U.S dollar gained a bit initially and then dipped -0.02% against other major rival currencies. This weakness can help other dollar-dominated currencies such as gold, to gain as it encourages other currency holders to buy.
The Fed has said that some brightening of the economy might lead it to cut back on asset purchased from the $85B/month current –pace that it is at. However, so far in 2013, gold prices are down 17%. IAG generated $45.10M income over the past 12 months and $1.46B in sales.
In Monday’s trading session, IAG stock rose 1.19%. The opening price of $6.81 rose to an intraday high of $7.00 and closed at $6.69. More than 10.95 million shares were traded in Monday’s trading session while the average volume of shares traded over 30 days was 7.34 million. The company has a market cap of $2.56 billion.
IAMGOLD Corp (NYSE:IAG) is a mining-company. Its interests include 5 operating mines, a diamond royalty, a nobium mine and exploration as well as development projects situated in the Americas and Africa. The company is focused on operations in some South American countries, West Africa and also in Quebec, Canada.