Troilus Gold brings potential funding from ECAs to $1.3 billion
The company has signed an additional LOI with Export Development Canada worth $300 million.
Gold prices gained more than 1% on Friday, shaking off stronger-than-expected jobs data from October, as major central banks continue to strike a dovish tone on interest rates.
Spot gold rose 1.1% to $1,810.28 per ounce by noon EDT, its highest in over a week. US gold futures for December delivery went up 0.9% to $1,810.10 per ounce.
[Click here for an interactive chart of gold prices]
The limited reaction to the latest employment data shows “despite the strong labor market report, it is not going to change what Federal Reserve Chair Jerome Powell signalled this week,”Edward Moya, senior market analyst at brokerage OANDA, wrote in a Reuters report.
Low interest rates to spur economic growth during the covid pandemic have pushed gold prices to new highs over the past two years. Easy monetary policy reduces the opportunity cost of holding non-yielding assets like bullion.
On Wednesday, the Fed stuck to its view that inflation would prove “transitory” and would likely not require a fast rise in interest rates. Following that, the Bank of England surprised markets by also keeping rates on hold.
The moves by these central banks helped gold shrug off early losses in the week, putting it on track to close the week up 1.0%.
“Gold bulls seem to be drawing strength from the Fed’s unhurried stance on raising interest rates,” said FXTM analyst Lukman Otunuga, adding that subdued treasury yields are complementing gains.
Yields on the US 10-year treasury notes slipped to their lowest level in about a month on Friday.
(With files from Reuters)
