Ramp Metals stock surges on Sprott backing for Saskatchewan project
Ramp compares its project with the eye structure of the Nova-Bollinger nickel-copper mine in Western Australia.
Gold prices retreated further on Wednesday as the dollar advanced after comments from US Federal Reserve officials cast doubts over interest rate cuts this year.
Spot gold was down another 0.3% to $1,981.95 per ounce by 12:40 p.m. EDT, after falling below $2,000 the previous session. US gold futures fell 0.4% to $1,985.60 per ounce.
[Click here for an interactive chart of gold prices]
Meanwhile, the US dollar index hit a six-week high, eroding appeal for bullion, which also competes with the currency as a safe-haven, especially among overseas buyers.
The dollar’s jump, in part driven by Fed officials generally “leaning hawkish overall,” has been weighing on the metals markets, said Jim Wyckoff, senior analyst at Kitco Metals, in a note to Reuters.
While a US debt default could be bullish for gold, most of the marketplace does not seem to think that could happen, Wyckoff added.
Reiterating the central bank’s resolve to rein in inflation, Chicago Fed President Austan Goolsbee said it was “far too premature to be talking about rate cuts”, while Cleveland Fed President Loretta Mester said rates were not yet at a point where the bank could hold steady.
A Reuters poll saw the Fed holding rates steady this year. Traders are pricing in an around 75% chance of the Fed standing pat on rates in June, with cuts still expected late in the second half of the year, per Fed Fund Futures.
“We still look for higher prices over the next 12 months, with gold expected to reach $2,200/oz, but the next uptick in prices is likely to happen when the Fed’s tone is shifting to more dovish,” said UBS analyst Giovanni Staunovo.
(With files from Reuters)
