AEMA, coalition launch legal challenge to BLM Conservation and Landscape Health Rule
The American Exploration & Mining Association was joined by a coalition in filing a challenge last Friday in the US District Court for the District of Wyoming.
Gold continued to climb on Friday to hit yet another record high, as multiple factors including US interest rate cut bets, speculative buying and central bank purchases kept bullion’s record rally active.
Spot gold gained 1.5% to $2,324.38 per ounce as of 12:18 p.m. EDT, after hitting a record high of $2,326.93 earlier in the session. US gold futures edged 1.7% higher to $2,347.30 per ounce.
Overall, bullion has risen 3.9% so far this week and is headed for a third straight weekly gain.
There are too many capital inflows and everybody is chasing the market high, which is helping gold prices along with strong central bank purchases and speculative buying, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
Gold was able to maintain its rally despite new US data pointing to a stronger jobs market.
Nonfarm payrolls increased by 303,000 jobs last month, the Labor Department said in its employment report on Friday. Economists polled by Reuters had forecast 200,000 jobs, with estimates ranging from 150,000 to 250,000.
Fed Chair Jerome Powell reiterated this week that the central bank was in no rush to reduce borrowing costs after leaving its policy rate unchanged in the current 5.25%-5.50% range last month.
“At some point later this year with inflationary concerns remaining somewhat sticky, that remains an underlying positive environment for the gold market,” said David Meger, director of metals trading at High Ridge Futures, in a Reuters note.
Traders are currently pricing in an about a 59% chance that the Fed will cut rates in June.
“Some folks might have also had some short positions covered and then technicians took it over the $2,300 resistance level,” said Bart Melek, head of commodity strategies at TD Securities.
(With files from Reuters)
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