In this post we will outline some of the most recent news in the gold market, discussing the changes in price, demand and new gold mining projects across the world.
– India’s Gold Bar imports collapsed over 70% in May, according to GJEPC data, the gold bar imports by the country during May recorded a significant decline when matched with the previous year. The monthly import statistics indicate that the total gold bar imports by the country during May ‘17 amounted to Rs 887.46 crores (USD 137.76 Million). In rupee terms, the gold bar imports have declined sharply by nearly 71.5% over the year. The decline in dollar terms stood at 70.4%. It must be noted that the country’s gold bar imports during May 2016 were valued at Rs 3,114.33 crores (USD 465.45 Million).
– On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 0.14% at $1,256.40. The August contract ended Thursday’s session 1.67% lower at $1,254.60 an ounce. Futures were likely to find support at $1,250.90, the low of May 24, and resistance at $1,268.50, Thursday’s high.
– Gold continued its slide for the third straight day and lost another Rs 50 to Rs 29,115 per 10 grams tracking weak global cues and muted demand from local jewellers at the bullion market. Silver also declined by Rs 50 to Rs 39,050 per kg due to reduced offtake by industrial units and coin makers.
– Amec Foster Wheeler has been awarded an engineering procurement and construction (EPC) contract worth AUD298m by Gruyere Management – the agent and manager for the joint venture between Gold Road Resources and Gruyere Mining Company – the Gruyere gold project in Western Australia. The project, located around 200km east of Laverton, is one of the largest undeveloped gold deposits in Australia. The mine is expected to be a large-scale open pit operation feeding a processing plant of between 7.5m and 8.8m tonnes per annum.
– Great Western Mining Corp PLC said on Friday it has raised GBP1.1 million to fund development of its copper-gold project in the US. The London- and Dublin-listed company raised the funds from a placing of 92 million new shares, which were sold for 1.25 pence each. Shares in Great Western on AIM (Alternative Investment Market) in London were down 21% to 1.34p on Friday.
– The highly anticipated rate hike announced yesterday was already largely factored into the market. This marks the second rate hike this year and the third time that the Fed has raised interest rates since it began the quantitative easing program initiated in 2008. Additionally, the Federal Reserve’s revealed its intention to implement an additional rate hike this year. However, the wildcard of yesterday statements were comments made in regards to plans to liquidate part of their balance sheet of assets, which now totals 4 ½ trillion dollars. This asset liquidation is commonly referred to as a stealth hike in that it has the same net effect of an interest rate hike. Simply put, massive liquidation will change the basic supply and demand variables intrinsic to pricing. A massive increase in supply with demand remaining steady will have a dramatic impact on pricing.
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