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Gold gains on continuing inflation fears

Lingering inflation fears have boosted the gold price, which was above US$1,868 an ounce on the spot market this morning.
Gold gains on continuing inflation fears Gold gains on continuing inflation fears Gold gains on continuing inflation fears Gold gains on continuing inflation fears Gold gains on continuing inflation fears

Chibougamau Independent Mines shot up 66.7% in Toronto

Staff reporter

"It seems to be that it is the fear of inflation rising beyond the US Federal Reserve's comfort levels driving precious metals, helped by the suggestion of a possible rise in interest rates sooner than the Fed has been predicting all along," Sharps Pixley's Lawrie Williams said.

"We would not be too surprised to see gold targeting the $1,900 level within the next week or two, although there could also be a short-term correction due primarily to profit taking."

Among other commodities, copper closed up 1.28% in London to $10,344.75 per tonne amid supply concerns.

Workers at BHP Group's remote operations centre in Santiago, Chile, rejected the company's final wage offer, with almost 97% of the union's members opting to strike, Reuters reported.

Making moves in Toronto, minnow Chibougamau Independent Mines (TSXV: CBG) shot up 66.7% to a record closing high of C40c after Glencore-supported Vanadium One Iron expanded its Mont Sorcier iron ore-vanadium project in Quebec.

CBG has a 2% royalty on all production from Mont Sorcier.

Vanadium One (TSXV: VONE) on the other hand lost 5.3%.

Western Copper and Gold (TSX: WRN) gained 24% on news Rio Tinto Canada was making a C$25.6 million strategic investment to advance its Casino copper-gold project in the Yukon.

And Americas Gold and Silver (TSX: USA) fell 28% as Relief Canyon issues continue, while the company was hopeful a blockade at its Cosala operation would be lifted this quarter.