Deep sea mining puts $560 billion in land extraction at risk — report
Even in optimal scenarios, the activity would generate only $6.25 million in tax revenue for countries involved, says Planet Tracker.
Gold prices rallied again on Friday and are heading towards their first weekly rise in five as a pullback in the US dollar and Treasury yields alleviated concerns of more Federal Reserve rate hikes.
Spot gold climbed 0.6% to $1,846.66 per ounce by noon ET, its highest in two weeks. US gold futures were up 0.7% to $1,853.70 per ounce in New York.
[Click here for an interactive chart of gold prices]
Until a new catalyst is found, such as next week’s jobs or consumer prices data, gold is likely to remain range-bound between the $1,830-$1,850 levels, Bart Melek, head of commodity markets strategy at TD Securities, told Reuters.
With China recovering, there may be continued robustness in gold consumption, with people also buying the metal to hedge against inflation, Melek added.
Meanwhile, the US dollar index is headed for its first weekly loss in five, making bullion more attractive for other currency holders, while benchmark 10-year yields crept lower from near a four-month peak.
While Fed Governor Christopher Waller said strong economic data could see rates above the 5.1%-5.4% range, Atlanta Fed President Raphael Bostic said he favored a “slow and steady” increase moving forward and a pause by mid or late summer.
Traders are now pricing in at least three more 25 basis point rate hikes this year, with rates peaking at 5.43% by September.
Should support for gold at $1,780-$1,800 break over the next few weeks, it could be due to a more hawkish shift in US monetary policy, Craig Erlam, senior market analyst at OANDA, said in a note.
(With files from Reuters)
Comments
Christina Dian Parmionova
Thinking to Buy the metal to hedge against inflation.