Techdamentals
Oct 14, 10:15 PM
$FNV Franco-Nevada is a royalty company. It funds mines for a cut of what they produce rather than digging gold out itself, so its results track the gold price without a miner's operating costs.
Gold fell more than 1% to about
$4,107 an ounce this morning after inflation came in at 3.7% against a forecast of 3.6%, pushing October Fed hike odds from 21% to 47% in about ten minutes.
Gold pays no yield, so that shift made it less attractive next to bonds that do pay, and royalty firms like Franco-Nevada moved with it.
Full explainer, plain English: https://www.youtube.com/watch?v=REWyi4wjrnY
Educational, not advice.
https://techdamentals.com/newsletter/why-gold-fell-when-inflation-went-up?ref=st
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