Red Pine resource update bumps tonnage by 15 times for Wawa gold project in Ontario
The update outlines 14.7 million indicated tonnes grading 1.8 grams gold per tonne for 842,000 oz. gold.
Gold slid nearly 1% on Wednesday but remains above the key $2,500 level as traders await more clues later this week on the Federal Reserve’s rate cut path.
Spot gold was down 0.9% at $2,501.87 per ounce by 1:10 p.m. ET, about $30 off its record high set last week. US gold futures fell 0.7% to $2,535.80 per ounce in New York.
Meanwhile, the US dollar index strengthened by 0.5%, making gold more expensive for most buyers. Still, bullion has been on an uptrend in recent weeks, recording a near 2% gain over the previous three sessions alone.
“The dollar is the trigger that has been brewing all week,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S, in a Bloomberg note.
“US data has failed to give gold any further lift, so the temptation for traders to book some profit after a long run has been rising.”
Traders are shifting attention to inflation figures due Friday, which may offer clues on how rapidly rates will be cut after Fed Chair Jerome Powell last week confirmed the “time has come” to ease policy.
The report is forecast to show the three-month annualized rate of core inflation fell to 2.1%, just above the central bank’s 2% goal. Lower interest rates are often seen as positive for non-interest bearing gold.
Bullion has surged by more than 20% so far this year, boosted by rate cut expectations and robust purchasing by central banks. It has also been supported by haven demand amid ongoing conflicts in the Middle East and Ukraine.
“A punch to an all-time high last week for gold prices seems to call for a near-term breather,” said Jun Rong Yeap, a market strategist with IG Asia Pte. “We may need to see softer economic data ahead to justify much lower rates, which may see gold prices well-supported.”
(With files from Bloomberg)
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