Decade Resources hits 79.12 g/t gold, 927 g/t silver in British Columbia
Drilling in 2024 intersected bornite-rich sections, with assay results for these holes still pending.
Gold demand in China is expected to improve in coming months as consumers adjust to higher prices, industry officials said, with economic uncertainty and concerns about currency weakness driving investment flows.
A revival of demand in the world’s top consumer of the precious metal could further support the rally in global gold prices, which hit a record high last week.
“Chinese buyers are adjusting to the higher prices,” said a Singapore based dealer with a leading bullion supplying bank.
“In July, they stayed on the sidelines, but recently, investment demand has picked up again. Discounts are narrowing as demand improves,” he said on the sidelines of the India Gold Conference.
Gold has surged 22% so far this year, hitting a peak of $2,531.60 per ounce and marking its best year since 2020.
The rise has been fuelled by a number of factors, including the prospect of interest rate cuts in the United States, global geopolitical tension and increased buying by investors.
“We will have to see how the prices behave, how quickly consumers and investors can adjust to those prices, and how the economy in China performs as well,” said Philip Newman, managing director of Metals Focus.
“But overall, we are fairly positive about the second half of the year.”
The People’s Bank of China (PBOC) paused gold purchases in May, with July marking the third consecutive month it held off buying for its reserves.
However, new quotas issued to several Chinese banks in August are intended to help regulate the flow of bullion into the country.
Seasonal demand is expected to pick up later in the year in China, with strong investment interest in gold persisting due to economic uncertainty, concerns about currency weakness and its appeal as an alternative asset given the protracted downturn in the country’s property sector, according to UBS strategist Joni Teves.
“If prices continue to make new highs, you will get a bit of headwind on the jewellery side, but this will be offset by investment interest.”
The PBOC was the world’s largest single buyer of gold in 2023, with net purchases of 7.23 million ounces according to the World Gold Council (WGC).
(By Rajendra Jadhav and Sherin Elizabeth Varghese; Editing by Kirsten Donovan)
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