Abitibi Metals boosts resource by 62% at B26 polymetallic deposit in Quebec
Indicated resources increased to 11.3 million tonnes from 6.9 Mt.
Gold prices edged higher on Monday, helped by a retreat in the US dollar and bond yields, while investors await a slew of economic data this week for more clues on interest rate outlook.
Spot gold rose 0.5% to $1,924.20 per ounce, approaching its highest in three weeks. US gold futures were 0.6% higher at $1,952.70 per ounce in New York.
[Click here for an interactive chart of gold prices]
Meanwhile, the dollar was down 0.1% against rivals, making gold less expensive for other currency holders. The benchmark 10-year Treasury yields also held below recent peak.
Focus this week will be on the US personal consumption expenditures price index report due on Thursday and the August nonfarm payrolls data on Friday for more clarity on the economy’s strength.
“Strong employment, strong jobs numbers and wage numbers imply continued stress on wages and potential inflation, meaning the Federal Reserve is more likely to keep rates at high levels for a prolonged period,” Bart Melek, head of commodity strategies at TD Securities, told Reuters.
“Gold could fall back towards the $1,900 if data remains very robust, I think it’s not outside of the realm of possibilities that gold could go to $1,840,” Melek added.
The Fed may need to raise interest rates further to cool still-too-high inflation, Fed Chair Jerome Powell said at an annual gathering in Jackson Hole, Wyoming, last Friday.
Investors are pricing in a 56% chance of another hike in 2023, and a 40% chance of the Fed leaving rates unchanged for the rest of the year, the CME FedWatch tool showed.
Highlighting investor sentiment toward bullion, data on Friday showed COMEX gold speculators cut net long positions in the week ended August 22.
(With files from Reuters)
