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Top Stories This Week: Gold Price Dips and Recovers, Troubled First Quantum Weighs Options
Jan. 19, 2024 02:00PM PST
The gold price nearly slipped below the US$2,000 mark this week, but had picked back up by the end of the period. In the copper space, rumors are swirling about a possible takeover of First Quantum Minerals.
Gold took a tumble this week, falling from a high point of about US$2,057 per ounce at the beginning of the period to just over US$2,030 at the time of this writing on Friday (January 19).
The yellow metal nearly dropped below the US$2,000 mark on Wednesday (January 17).
Gold's price decline came on the back of positive retail sales numbers out of the US. Data from the country's Department of Commerce shows that retail sales rose 0.6 percent month-on-month in December, which is more than analysts anticipated. Support reportedly came from purchases of motor vehicles and online buying.
While the US Federal Reserve is widely believed to have topped out on interest rate hikes, questions remain about how much it will lower rates in 2024 and when it will start bringing them down. Experts believe this week's retail sales release gives the central bank more flexibility, an idea that's been verbalized by Fed Governor Christopher Waller.
"The key thing is the economy is doing well. It is giving us the flexibility to move carefully and methodically. We can see how the data comes in, see if progress is being sustained," Reuters quotes him as saying.
The Fed's second meeting of the year is in March, and CME Group's (NASDAQ:CME) FedWatch tool still shows a 54.6 percent probability of a 25 basis point cut at that time; however, the likelihood was around 9 percent higher a week ago.
Will Barrick Gold buy struggling First Quantum?
First Quantum Minerals (TSX:FM,OTC Pink:FQVLF) made headlines toward the end of 2023, when it was forced to shut down its Cobre Panama copper mine, and this week it was back with guidance for 2024 to 2026.
On Monday (January 15), the company outlined a slew of measures aimed at shoring up its financial position, including lowering spending, pausing its dividend and putting smaller mines up for sale. Aside from that, First Quantum said it is "evaluating the possibility of investments by strategic investors in its larger mining assets."
As First Quantum puts these measures in place, rumors are swirling that Barrick Gold (TSX:ABX,NYSE:GOLD) may be interested in acquiring the distressed firm during its time of trouble — according to Bloomberg, Barrick boss Mark Bristow has spoken to some of the company's major investors to gauge their thoughts on such a deal. Whether that pans out remains to be seen, but Bristow does have a history of working successfully in tough jurisdictions.
Vancouver Resource Investment Conference
You may have noticed that our YouTube channel has been a little quiet for the last couple of weeks, and that's because we're getting ready for the Vancouver Resource Investment Conference (VRIC), which runs from January 21 to 22.
I'll be recording interviews at the show with popular industry experts like Rick Rule, EB Tucker, Lynette Zang and more. If you have any topics or questions you'd like me to cover, you can reach me at cmcleod@investingnews.com.
I'm also very excited to be hosting four fireside chats at VRIC. I'll be speaking on stage with Ross Beaty, Jeff Clark, Brent Johnson and Christopher Aaron. I'm really looking forward to all of these discussions, and if you'll be attending VRIC I'd love to see you there — the Investing News Network will be set up in booth M9 on the show floor.
Want more YouTube content? Check out our expert market commentary playlist, which features interviews with key figures in the resource space. If there's someone you'd like to see us interview, please send an email to.
And don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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