Indonesia to review compliance in move that could affect mine output
Indonesia said it will check miners' compliance with environmental rules and "re-examine" production quotas for those found to be in breach.
Gold remains on pace for its worst monthly performance in over a year despite rising for a fourth straight day, as the metal continues to recover from its heavy losses during the selloff driven by Donald Trump’s election win.
Spot gold gained 0.7% to $2,657.84 per ounce by 12:30 p.m. ET on Friday, but is still set for a weekly decline of 1.9% after a sharp fall on Monday. US gold futures were also up 0.7% at $2,683.30 per ounce.
Bullion has now dropped over 3% so far this month, its worst monthly slide since September 2023, as “Trump euphoria” lifted the US dollar this month and stalled gold’s rally, triggering a post-election sell-off.
Meanwhile, the dollar index fell to its lowest in over two weeks on Friday, but remains on track for a 2% rise in November as Trump’s win fuelled expectations of big fiscal spending, higher tariffs and tighter borders.
Gold, buoyed by geopolitical tensions and Federal Reserve interest rate cuts this year, now faces pressure as higher tariffs could stoke inflation and lead the Fed to adopt a cautious approach to further rate cuts.
It’s uncertain as of now, how Trump’s pledged tariffs will play out, said Jim Wyckoff, a senior market analyst at Kitco Metals told Reuters.
“The uncertainty of the matter, the tariffs that could prompt a slowdown in economic growth could actually be beneficial for the gold market from a safe-haven basis,” Wyckoff said.
Earlier in the day, bullion had risen as much as 1.1% after geopolitical tensions escalated in Ukraine following another major attack by Russia.
“Persistent global uncertainties continue to drive demand for gold as a safe-haven asset,” Ole Hansen, head of commodity strategy at Saxo Bank, said in a note.
(With files from Reuters)
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