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Patience boosts markets

Markets and diversified miners enjoyed a positive period as the US Federal Reserve indicated it would be “patient” regarding interest rate hikes.
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Iron ore, miners on the rise. Image: BHP

Staff reporter

The US dollar fell to a four-month low, Bloomberg noted, while the first official gauge of China's economy in 2019 showed conditions for factories stabilising.

The gold price has risen close to US$1,320 an ounce on the spot market and base metal futures were higher in Asian trade.

In Toronto, Ivanhoe Mines (TSX: IVN) closed 8.79% higher on "unprecedented" copper drilling results from its Kamoa North prospect in the Democratic Republic of Congo. 

Copper major Freeport-McMoRan (NYSE: FCX) rose 7.85% in New York as the red metal price strengthened on the London Metal Exchange yesterday.

In Australian trade, BHP (ASX: BHP) was 1.18% higher at the time of writing, with the iron ore price rising in the wake of Vale's decision to cut 10% or 40 million tonnes of iron ore production following the deadly Feijão tailings dam failure.

In London, Glencore (LSE: GLEN) closed up 2.76% and Anglo American (LSE: AAL) was up 2.57%.

The gold sector in Toronto just finished in positive territory yesterday, up 0.06%.

The group was book-ended by Eldorado Gold's (TSX: ELD) gain of 2.93% and Centerra Gold's (TSX: CG) drop of 2.49%.

Eldorado had yesterday announced it would resume mining at Kisladag in Turkey, while Centerra this week said it had once again agreed to extend a deadline regarding agreement with the Kyrgyz Republic over the Kumtor gold mine.

Meanwhile, trade talks between US and Chinese officials are set to resume later today, Brexit is no closer to being resolved and Chinese markets will be closed next week for the Lunar New Year break.