CAPITAL MARKETS

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.

Staff reporter
 Chibougamau Independent Mines shot up 66.7% in Toronto

Chibougamau Independent Mines shot up 66.7% in Toronto

"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.

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