Gold Prices Fall Most Since 2013—Here’s Why Metals Are Plunginghttps://t.co/xJyKCLJqu8 https://t.co/sdwriQpvlK ...

South African Reserve Bank Governor Lesetja Kganyago says that locking in a lower inflation goal could underpin another drop in bond yields. He also talks about gold after the yellow metal smashed through $4,000 an ounce for the first time earlier this week. "We still have gold in the ground, so if we need it we will just go and dig some more," Kganyago says. He speaks to Bloomberg's Jennifer Zabasajja. -------- More on Bloomberg Television and Markets Like this video? Subscribe and turn on notifications so ...

>> GOOD MORNING. THIS IS "HORIZONS MIDDLE EAST AND AFRICA." OUR TOP STORIES THIS MORNING, GOLD PRICES CLIMBED TO ABOUT $4,000 AN OUNCE FOR THE FIRST TIME EVER AS CONCERNS OVER THE U.S. ECONOMY AND A GOVERNMENT SHUTDOWN ADD FRESH MOMENTUM TO A SCORCHING RALLY. BLOOMBERG HAS LEARNED ELON MUSK XCI IS RAISING MORE MONEY THAN PLANNED.AND WHAT IS SEEN AS A FINAL PUSH, SENIOR OFFICIALS FROM THE U.S., QATAR AND OTHER NATIONS HEAD TO EGYPT FOR TALKS AIMED AT ENDING THE TWO-YEAR WAR THAT DEVASTATED MUCH OF THE MIDDLE ...

Core Insights - Gold prices have reached an all-time high, indicating strong demand and investor interest in safe-haven assets amid economic uncertainty [1] - The U.S. dollar has weakened further, contributing to the rise in gold prices as investors seek alternatives to the dollar [1] Group 1: Gold Market Dynamics - The surge in gold prices reflects a significant increase, with prices surpassing previous records, driven by geopolitical tensions and inflation concerns [1] - Investors are increasingly turning to gold as a hedge against currency depreciation and economic instability, leading to heightened market activity [1] Group 2: Currency Impact - The weakening of the U.S. dollar has been a critical factor in the rising gold prices, as a lower dollar value makes gold cheaper for foreign investors [1] - The correlation between the dollar's performance and gold prices highlights the importance of currency fluctuations in commodity markets [1]

Market Overview - The Australian market has diverged from Wall Street trends, with local indices retreating in early September [1] - A roughly 50/50 split was observed among sectors, with real estate leading and healthcare lagging [2] Company Performances - 4D Medical saw a significant increase of 20%, reaching approximately $1.90 per share, maintaining its status as a favored biotech stock despite a lack of major catalysts [2] - Service Stream experienced a 15% jump to $2.30 per share after securing an eight-figure contract with the Australian Defence [3] - Resolute Mining benefited from strong gold prices, contributing to its position among the top gainers [3] Competitive Landscape - Afterpay's parent company Block faced a decline following the successful listing of US competitor Klarna, which poses a significant threat to Afterpay's market position in the US [3] - Boss Energy's stock fell after the company indicated it would provide more clarity on uranium production in the December quarter, which did not satisfy investor expectations [3] Market Activity - Top End Energy, involved in hydrogen and gas, saw its stock decline on low volumes as it announced plans to trade on the US OTC markets, despite not being in the rare earths sector [4]

Stock Upgrades and Downgrades - RBC upgraded Pneumont to outperform, correlating with rising gold prices and improved business management, stock is up 51% year to date [1][2] - Morgan Stanley reiterated United Health to outperform, shares pulling back [2] - BFA raised Progressive's price target to $347 from $344 [8] Regional Banks - Caner Fitzgerald initiates Citizens Financial, Mnt Bank, and Regions Financial as overweight [5] - Citizens Financial and Regions Financial are performing best among regional banks, while Mnt and Fifth Third are losing momentum [5][6] - Regional banks' performance is dependent on local economies and loan growth [6][7] United Health - United Health's stock has been struggling since April, down 32%, but has seen some recovery since August [3] - Buffett took a position in United Health, and Appaloosa bought into it after Michael Burry stopped shorting it [3][4] - Optimum is growing and managing medical costs, but there are still challenges to address [4] Insurance Industry - Insurance companies had pricing power due to inflation but are now seeing momentum neutralized and pricing power weakening [9] - The upcoming quarterly rebalance in October will determine whether insurance positions will be moved to the sidelines [10] - Progressive is up almost 1% [10]

Core Viewpoint - Kinross Gold Corporation (KGC) has experienced a significant share price increase of 70.5% over the past six months, outperforming both the Zacks Mining – Gold industry and the S&P 500 index, driven by strong earnings performance and favorable gold prices [1][7]. Performance Comparison - KGC's peers, including Barrick Mining Corporation, Newmont Corporation, and Agnico Eagle Mines Limited, have seen share price increases of 28.3%, 46.2%, and 36% respectively during the same period [2]. Technical Indicators - KGC has been trading above its 200-day simple moving average (SMA) since March 6, 2024, and is also above its 50-day SMA, indicating a bullish trend [5]. Development Projects - Key projects such as Great Bear in Ontario and Round Mountain Phase X in Nevada are expected to enhance production and cash flow, with the Manh Choh project commencing production in Q3 2024 [10]. - Tasiast and Paracatu are the company's largest assets, contributing significantly to cash flow, with Tasiast achieving record production in 2024 [11]. Financial Health - KGC reported liquidity of approximately $2.8 billion, including over $1.1 billion in cash and cash equivalents, with free cash flow increasing by 87% year-over-year [12]. - The company repaid $800 million of debt in 2024 and reduced its net debt to around $100 million by the end of Q2 2025 [13]. Gold Price Impact - Gold prices have risen approximately 27% this year, reaching a peak of $3,500 per ounce in April 2025, currently hovering above $3,300 per ounce, which is expected to enhance KGC's profitability [14]. Dividend Information - KGC offers a dividend yield of 0.6% with a payout ratio of 10%, indicating a sustainable dividend backed by strong cash flows [15]. Analyst Sentiment - Earnings estimates for KGC have been revised upward, with the Zacks Consensus Estimate for 2025 earnings at $1.38, reflecting a year-over-year growth of 102.9% [16]. Valuation Metrics - KGC is trading at a forward price/earnings ratio of 13.86X, slightly above the industry average of 13.48X, indicating a competitive valuation compared to peers [17]. Investment Outlook - KGC presents a strong investment case with a solid pipeline of projects, healthy financials, and favorable market conditions, making it a compelling choice for investors [20][21].

Core Viewpoint - Agnico Eagle Mines Limited (AEM) has seen a significant increase in its stock price, driven by rising gold prices and strong earnings performance, with a year-to-date surge of 71% [1][7][24] Performance Summary - AEM's stock has outperformed the S&P 500's increase of 9.5% and is slightly behind the Zacks Mining – Gold industry's rise of 73.6% [1] - Compared to its peers, AEM's stock performance is notable, with Barrick Mining, Newmont Corporation, and Kinross Gold showing increases of 54%, 84.2%, and 105.5% respectively [2] Technical Analysis - AEM has been trading above the 200-day simple moving average (SMA) since March 4, 2024, indicating a bullish trend [5] - The stock is also above the 50-day SMA, which is higher than the 200-day SMA, reinforcing the positive outlook [5] Growth Drivers - Key projects such as Hope Bay and Canadian Malartic are expected to drive future growth in production and cash flows [7][10] - The Hope Bay Project has proven and probable mineral reserves of 3.4 million ounces, which will significantly contribute to cash flow [11] Financial Health - AEM reported operating cash flow of $1,845 million in the second quarter, a 92% increase from $961 million a year ago [13] - Free cash flow for the second quarter was $1,305 million, more than double the previous year's figure of $557 million [14] - The company reduced long-term debt by $550 million to $595 million, ending the quarter with a net cash position of $963 million [15] Market Conditions - Gold prices have increased by approximately 28% this year, reaching a record high of $3,500 per ounce on April 22, 2025, and currently hovering above $3,300 per ounce [16][17] - Central banks are accumulating gold reserves, contributing to the favorable pricing environment [17] Dividend and Valuation - AEM offers a dividend yield of 1.2% with a five-year annualized dividend growth rate of 6.9% and a payout ratio of 27% [18] - The stock is trading at a forward price/earnings ratio of 19.3X, a 42.6% premium to the industry average of 13.53X [20] Earnings Estimates - The Zacks Consensus Estimate for AEM's 2025 earnings has been revised upward, suggesting a year-over-year growth of 59.8% [19]

Risk Assessment - Ghana, Tanzania, and Uganda face the highest risk in Africa of a plunge in their foreign-exchange holdings [1] - This risk is triggered by a sudden fall in gold prices [1] - The plunge in foreign-exchange holdings could potentially put renewed pressure on their currencies [1]

Financial Performance - Newmont's quarterly profits exceeded analysts' estimates [1] - Profits were boosted by higher gold prices [1] Market Dynamics - Newmont shares increased following the release of the quarterly profits [1]