Zijin Mining reports illegal mining at Buritica gold mine, losses being assessed
Zijin said that organized groups had illegally mined some "high-grade ore bodies" in the shallow areas of the mine.
Gold prices jumped to a more than two-month high on Thursday as data showed US inflation cooled off a bit in October, lifting hopes that the Federal Reserve would adopt a less aggressive approach on rate hikes.
Spot gold climbed 2.3% to $1,745.66 an ounce by 11:15 a.m. ET, having crossed the pivotal $1,750 mark earlier. US gold futures also gained 2.3%, trading at $1,753.90 an ounce in New York.
[Click here for an interactive chart of gold prices]
The US consumer price index (CPI) rose 0.4% last month after climbing by the same margin in September, Labor Department data showed. Economists polled by Reuters had previously forecast an advance of 0.6%.
“When we start to see inflationary data showing that inflation is coming down, there is an expectation that the Fed is going to begin to slow the pace of those interest rate hikes,” David Meger, director of metals trading at High Ridge Futures, told Reuters.
“Hence you could argue that the dramatic pressure that has been applied to the gold market over the last several months has been released and gold now has the ability to move higher,” he added.
Following the US data, the dollar dropped more than 1% to a near two-month low, making gold less expensive for other currency holders. Benchmark US 10-year Treasury yields also slipped to a one-month low.
Fed fund futures are now pricing in a 71.5% chance of a 50-basis-point hike at the Fed’s policy meeting in December. The US central bank’s policy rate is currently in a range of 3.75%-4.00%.
“The cool inflation print should mean the beginning of the end for inflation fears, and the Fed will feel much more comfortable ramping down,” said Stephen Innes, managing partner at SPI Asset Management, in a note.
(With files from Reuters)
