CAPITAL MARKETS

Investors continue to shun gold

The gold price continued to head lower on Friday, as investors looked past next week’s expected interest rate rise to January and rumours of US president Donald Trump unveiling a long-awaited infrastructure plan.

Staff reporter
 Investors have continued to shun gold in favour of the US dollar this week

Investors have continued to shun gold in favour of the US dollar this week

By mid-morning in New York, gold was marked around US$1,249 per ounce, some $4/oz lower than 24 hours earlier. It ended last week at $1,283/oz.

An interest rate hike during the Federal Market Open Committee meeting next week is pretty much priced into the gold market, but investors are continuing to leave the safe haven in favour of the greenback on expectations of increased spending on infrastucture in the US.

Trump came into the White House with grand infrastructure plans and analysts believe an announcement on his plans could come in January, countering the anticipated inflationary effects of the tax cut legislation now going through congress.

Despite the price softness, Barrick Gold's (US:ABX) New York-listed shares were up 0.95% and Goldcorp's (CN:G) Toronto-listed stock had risen 0.65% by mid-morning.

While the evidence has not yet appeared, one can't help think gold investors may also have got caught up in the Bitcoin bull run this week.

The cryptocurrency hit a new record on Friday, crossing the US$17,000 mark, before falling back to as low as $14,123. It has since recovered to $15,637, according to coindesk.com.

Bitcoins had risen as much as 70% this week.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.