Precious Metals Weekly Round-Up: Gold on Track for Best Month in 3 Years

Precious Metals

The gold price was on track for its biggest monthly gain since 2016. Silver, platinum and palladium were also headed for a monthly gain.

The gold price is headed for its best month in three years as investors await a meeting between the United States and China.

On Friday (June 28), the yellow metal edged up and was also on track to hit its sixth consecutive weekly rise.

“Doubts about the success of the meeting between the two leaders have been weighing on risky assets; that is positive for gold,” said Quantitative Commodity Research analyst Peter Fertig.

Gold’s gains have also been supported by expectations of an interest rate cut in July by the Federal Reserve.

“The sustained decline in rates is a key factor (for gold), particularly as the Fed shifts to a more dovish stance,” UBS analysts said in a note, raising their three month gold price target to US$1,430 per ounce from US$1,380.

“Uncertainty around growth and trade risks suggests more strategic positions are likely to be built.”

As of 12:30 p.m. EDT on Friday, gold was trading at US$1,410.64.

Looking over to silver, the white metal was also on track for a monthly gain, but edged down on Friday. As of 12:30 p.m. EDT on Friday, silver was trading at US$15.25 per ounce.

Meanwhile, platinum inched up to US$838 per ounce and palladium edged up to US$1,518.50 per ounce.

Precious metals top news stories

1. Gold Holds Steady Above US$1,400 Thanks to Safe Haven Demand

Gold made gains and touched an almost six year high on Monday (June 24) as investors leaned into the yellow metal as a safe haven after tensions between the US and Iran intensified.

The precious metal is now heading toward a fifth straight week in the green as the feud between the two countries continues to fester.

Despite US President Donald Trump’s statement on Sunday (June 23) that he will not be seeking war with Tehran, Washington is set to announce “significant” sanctions on Iran later on Monday.

2. Amplats Says Profits Will Soar on Higher PGMs Prices

Anglo American Platinum (Amplats) (OTC Pink:AGPPF,JSE:AMS) won’t be releasing its half-year results until the end of July, but the platinum-group metals (PGMs) miner said on Tuesday (June 25) that headline earnings for that timeframe will be at least 80 percent higher year-on-year.

The company stated that the increase, which it expects will total 3.36 billion rand, is a direct result of higher PGMs prices paired with a lower rand.

“Basic earnings and basic earnings per share (EPS) will also be at least 180 percent (R3.922 million total or US$0.15 cents per share) higher than the comparative period as a result of a higher PGM basket price and once-off impairments in 2018,” Amplats stated in a press release.

3. Ghana for Gold

Ghana is a mining nation on the rise: a beacon of stability and a magnet for investment in West Africa, a region with countries that are often still dealing with the repercussions of colonial wrangling and small arms conflict.

The country is home to a healthy and growing gold mining community that hails from all corners of the Earth, with Canadian, South African and Australian miners operating there. As of recently, it is also Africa’s largest gold producing nation, having snapped up the top spot from South Africa.

In three articles, the Investing News Network (INN) takes a closer look at this West African nation, exploring the reality on the ground, the challenges it and miners operating there need to overcome, its considerable strengths as a mining jurisdiction and what the future holds for the country.

Ghana for Gold, Part 1: West African Nation Becomes Top Producer

Ghana for Gold, Part 2: Obstacles Today

Ghana for Gold, Part 3: Into the Future

Also in the news

In other precious metals news this week, Acacia Mining (LSE:ACA,OTC Pink:ABGLF) wasn’t able to change Barrick Gold’s (TSX:ABX,NYSE:ABX) view on Barrick’s proposed takeover bid. The Canadian miner defended its offer saying it was fair and reflected realistic assumptions about the company’s mines.

“Barrick continues to believe that the terms of its proposal reflect the fair value of Acacia,” it said in a statement. “In the absence of a take-private transaction, Barrick does not consider there is any credible alternative solution which will preserve, to the extent possible, value for all stakeholders.”

Meanwhile, Yamana Gold (TSX:YRI,NYSE:AUY) provided a new near-term plan for its Jacobina mine in Brazil, increasing production expectations for 2019 to 2021.

“Jacobina has improved significantly in the last several years across all measures, and it is now one of our higher quality, high value operations,” said Daniel Racine, president and CEO of Yamana. “We believe that it is on the cusp of becoming a world class mine, particularly once a decision is made to proceed with the Phase 2 expansion, given strong production, production growth, increasing mineral inventory at improving grades, and continuous increases in cash flow.”

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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

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