The start of this week saw the price of gold surpass the $3,800 per ounce mark, a new high for the precious metal. Spot gold saw its price surge to $3,829.63 an ounce, representing a 1.9% increase in its price. Gold futures in the U.S. for December delivery ended the session at $3,855.20 an ounce, a 1.2% increase.
At the same time, the dollar index slipped 0.2%, easing the cost of greenback-priced gold for foreign investors.
These developments come as more investors seek refuge in the safe-haven asset due to additional anticipated U.S. rate cuts, escalating geopolitical risks and concerns about the government shutdown.
Thus far this year, gold has seen its value rise by 43% as uncertainty heightens and low-interest rate environments continue to prevail.
High Ridge Futures’ director of metals trading, David Meger, argues that the primary driver of the precious metal’s rally is safe haven demand from investors concerned over the recent government shutdown in the U.S.
President Donald Trump met with senior leaders in Congress from both parties earlier in the week, the primary focus being to negotiate an extension of federal funding. No agreement was reached and the shutdown commenced.
Meger explains that the dollar is facing mild pressure as a result, which is clearly lending support to the precious metals sector. Data released by the U.S. Personal Consumption Expenditures Price Index reinforces investor confidence in the likelihood of interest rate cuts by the Fed at its October and December meetings.
Merger explains that the consumption expenditures data was seen as not obstructing the possibility of additional rate cuts by the Federal Reserve, which continues to provide underlying support for both gold and silver.
Over in Russia, the country’s Ministry of Defense announced that its forces had seized control of the village of Shandryholove, located in the eastern Donetsk region of Ukraine. These developments come as Israel continues its military assault in Gaza, where ongoing airstrikes have resulted in the deaths of civilians and healthcare personnel.
In other news, CEO of Newmont Tom Palmer is set to retire at the end of this year. Palmer, who’s been with the mining firm for 12 years, joined the firm as Senior VP. Mark Bristow also resigned from his position as CEO of Barrick Gold.
Meanwhile, platinum saw its price rise to $1,592.65, representing a 1.5% gain. Silver also saw its price surge to $46.85 an ounce, a 1.9% increase. On the other hand, palladium’s price fell to $1,255.61 an ounce.
Many investors will be watching stocks like Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM) in the wake of the surge of gold and other precious metals in their quest for where to channel their funds.
About MiningNewsWire
MiningNewsWire (“MNW”) is a specialized communications platform with a focus on developments and opportunities in the Global Mining and Resources sectors. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, MNW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, MNW brings its clients unparalleled recognition and brand awareness.
MNW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from MiningNewsWire, text “BigHole” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.MiningNewsWire.com
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
MiningNewsWire
Los Angeles, CA
www.MiningNewsWire.com
310.299.1717 Office
Editor@MiningNewsWire.com
MiningNewsWire is powered by IBN
