Gold Stocks Performance Analysis: Understanding the Influence of Gold Prices and Inflation

Gold Prices and Inflation

The price of gold is affected by a number of factors, including the level of the US dollar, investors' appetite for risk, and global central bank policy. In recent months, the price of gold has been affected by the level of inflation in the US. The headline inflation rate in the US accelerated to 3.2% in February, which is higher than expectations and the January figure of 3.1%. The core rate fell to 3.8% from 3.9% but is still higher than the expected 3.7%. Both measures rose 0.4% monthly. However, markets continued to bet on a more than 60% chance that the Fed will start cutting US interest rates in June, even though the US central bank is widely expected to hold rates steady in March and May.

Gold Stocks and Oil Prices

The price of oil is also affected by global central bank policy and investors' appetite for risk. Oil prices climbed on Thursday after data showed U.S. gasoline stocks fell for the sixth straight week to three-month lows and crude stockpiles dropped unexpectedly. Rising fuel prices were partly responsible for stickier consumer price readings for February earlier this week. The producer price report for last month is due out later.

Gold Stocks and Tesla

Tesla drifts further from the megacap stock vanguard. The tech sector saw Nvidia's stock fall 1.1% after rising 7.2% in the previous session, and Tesla's stock fell 4.5% after a downgrade by Wells Fargo. Intel's stock lost 4.4% after reports that the Pentagon plans to spend heavily on a chip grant, which could impact Intel's federal funding outlook. Amazon's stock rose 0.7%, helping to offset losses in the Dow Jones Industrial Average.

Gold Stocks and i-80 Gold

i-80 Gold (TSE:IAU) released its full year 2023 results, with revenue of US$54.9 million, up 49% from the previous year. The company also reported a net loss of US$65.2 million, narrowing by 18% from the previous year. The company's shares are up 8.5% from a week ago. However, there is one warning sign with the company, and understanding this should be part of the investment process. Valuation is complex, but Simply Wall St is helping make it simple by providing a comprehensive analysis, including fair value estimates, risks and warnings, dividends, insider transactions, and financial health.

Gold Stocks and Wesdome Gold Mines

Wesdome Gold Mines (TSE:WDO) released its full year 2023 results, with revenue increasing by 26% to CA$333.2m, net loss narrowing by 58% to CA$6.19m, and earnings-per-share (EPS) improving from CA$0.10 loss in FY 2022 to CA$0.042 loss per share. Revenue was in line with analyst estimates, but EPS missed expectations. The company's shares are down 8.8% from a week ago. The company's revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Metals and Mining industry in Canada. There is one warning sign for Wesdome Gold Mines that investors should be aware of.