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Mexican standoff boosts gold

The lack of progress in Mexico-US trade talks has dented market sentiment and continuing uncertainties over trade and the possibility of a rate cut have boosted the gold price.
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Image: Gomez Angel

Staff reporter

"Progress is being made, but not nearly enough!" US president Donald Trump tweeted earlier of the Mexican trade talks, which are set to resume today.

The gold spot price has continued to rise above a three-month high and was worth US$1,331 an ounce on the spot market at the time of writing, its highest point since February 20.

The world's biggest gold miner, Newmont Goldcorp (NYSE: NEM) has also been rising, closing up 0.79% yesterday and taking its year-to-date gain to 2%.

The gold sector's slight gain in Toronto yesterday wasn't enough to lift its broader metals and mining stocks, which closed 0.15% in the red.

First Quantum Minerals (TSX: FM) closed down 2.8% after telling Reuters it had "fully complied" with local rules in operating Cobre Panama, following Panama's president-elect Laurentino Cortizo warning the incoming government would review the contract.

BHP (ASX: BHP) was down almost 1% in afternoon Australian trade as the iron ore price softened slightly amid reports there were signs of shipments from Brazil and Australia picking up.

The price of 62% Australian fines has dropped below $100 per tonne to $99.35/t, according to MySteel.

US markets looked set for a lower start while European and Toronto market futures were positive ahead of today's opening.