El Salvador president proposes bill to overturn metals mining ban
In 2017, El Salvador became the first country in the world to ban forms of metals mining.
MarketWatch reports gold futures lost ground in electronic trading Friday as the dollar strengthened against major rivals. Gold for August delivery declined $16.70, or 1.1%, to $1,486.10 an ounce on the Comex division of the New York Mercantile Exchange.
A stronger greenback tends to discourage investment in dollar-priced commodities such as gold. The precious metal was also pushed lower as some uncertainty about the euro zone’s debt problems lifted. Despite the recent weakness, gold prices remain over 5% higher this year. Silver followed gold lower Friday, dropping close to 3%.
Analysts at BNP Paribas said gold has been supported by inflationary pressures and some safe-haven buying as a result of the eurozone debt crisis.
“The surge in inflationary pressures goes a long way towards explaining the strong demand growth for gold, notably in India and China, as consumers seek to hedge themselves against rising prices,” the analysts said.
The analysts forecast the gold price to average $1,510 an ounce in 2011 and $1,600 an ounce in 2012.
