Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Gold steadied on Wednesday after falling to a two-week low earlier as the US Federal Reserve, in a widely expected move, raised interest rates by a quarter of a percentage point.
The reversal comes as bullion’s appeal was dimmed by hopes of progress in Russia-Ukraine talks. Earlier, Ukrainian President Volodymyr Zelensky said peace talks were sounding more realistic, even as Russia’s invasion continued.
Spot gold rose 0.5% to $1,926.96 an ounce by 5:08 p.m. ET. US gold futures stayed level at $1,927.00 an ounce on the Comex in New York.
[Click here for an interactive chart of gold prices]
“Gold is holding well as the recent sharp pullback may have run its course. I expect gold prices to trade between $1,880-$1,960 range in the near-term,” Tai Wong, an independent metals trader in New York, told Reuters.
“However, the Fed was somewhat more hawkish in the dot plot than expected. They are projecting a hike at every meeting going forward in 2022. This does not bode well for gold market,” Wong added.
Meanwhile, the dollar index fell 0.5% against its rivals, making gold less expensive for other currency holders. Benchmark 10-year US Treasury yields also pulled back from recent highs, giving a boost to the non-yielding bullion.
(With files from Reuters)
