CAPITAL MARKETS

Gold softens from high

Market futures were pointing to a positive start to the week, which is tipped to possibly include a US interest rate cut.

Staff reporter
 Newmont Goldcorp’s Tanami operations in Australia

Newmont Goldcorp’s Tanami operations in Australia

Macro uncertainties continue, with ongoing demonstrations in Hong Kong, a massive power blackout in South America, attacks on two oil tankers in the Middle East late last week and US-China trade tensions unresolved.

The spot gold price rose above US$1,350 an ounce on Friday but has softened a little to about $1,341/oz at the time of writing.

BHP (ASX: BHP) remains around an eight-year high, well above the A$40 mark in afternoon Australian trade, as the iron ore price remains close to $110 per tonne and workers at Codelco's Chuquicamata copper mine in Chile go on strike.

Elsewhere among the majors, Rio Tinto (LSE: RIO) had closed down 0.7% in London on Friday but is also close to a multi-year high.

Newmont Goldcorp (NYSE: NEM) gained 1% in New York, while Freeport-McMoRan (NYSE: FCX) lost 1.66%.

Metals and mining stocks were off about 0.6% overall in Toronto on Friday, where Barrick Gold (TSX: ABX) finished up 0.86%.

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