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Gold price surges towards US$1,400 mark
There appears to be good news for gold miners and Guyana.
The gold price has been steadily rising in recent weeks and is likely to surpass the US$1,400 per ounce mark on the world market.
As of yesterday, the price was nearing US$1,390 per ounce. That would have been the highest since prices plunged from a US$1,900 high in the 2011-2012 period.
Gold miners in Guyana would be glad for the price surge this week after a couple of years where the prices barely moved past US$1,350.
Still, over US$1,200 has been a good price for miners and traders.
It was lower than US$900 prior to 2010.
For Guyana, the price increase would spell good news as it depends heavily of the earnings and the foreign exchange that gold brings in.
Foreign exchange from gold has been over US$600M annually for consecutive years, surpassing rice and sugar.
Gold miners have been complaining of being severely challenged by weather and poor access roads to mining areas, located in remote areas. This has affected declarations and earnings.
With regards to the surge in gold price, Bloomberg yesterday reported that investors are pouring money into exchange-traded funds.
“The dollar is weakening and the U.S. Federal Reserve seems to be charting a path to cut interest rates. Meanwhile, China is on a buying spree to stock up reserves.”
Gold futures for August delivery rose 3.6% yesterday to the highest for a most-active contract since September 2013, and settled at $1,396.90 an ounce at 1:35 p.m. on the Comex in New York.
Although gold has gathered some momentum in the past few weeks, it was the Fed’s comments Wednesday that triggered the latest spike, Bloomberg said,
“While the (US) central bank left its key rate unchanged, it abandoned a reference to being “patient” on borrowing costs. Lower rates boost the appeal of non-interest-bearing assets like gold.”
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