Abitibi Metals boosts resource by 62% at B26 polymetallic deposit in Quebec
Indicated resources increased to 11.3 million tonnes from 6.9 Mt.
Gold rose for a third straight session on Wednesday, supported by a fresh batch of weak US economic data which reinforced the view that the Federal Reserve may have to hit pause on its interest rate hikes.
Spot gold rose 0.4% to $1,945.04 per ounce noon 11:55 a.m. EDT, its highest nearly a month. US gold futures also gained 0.4$ to trade at $1,972.90 per ounce.
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“Gold is trading at highs for the month as the weaker-than-expected ADP report and GDP revision continue a trend of softer economic indicators that will likely keep the Fed on hold in September,” said Tai Wong, a New York-based independent metals trader, in a Reuters note.
Benchmark 10-year yields dropped to their lowest since August 11 while the dollar slipped to a two-week low after US GDP data showed a softening of the economy in the second quarter. A drop in US job openings added to the sentiment.
Bets on the Fed leaving rates unchanged in September rose to nearly 91%, from 88.5% before the data, while bets of a pause in November rose to nearly 59% from 52% a day earlier, according to the CME Group’s FedWatch tool.
Investors now await the PCE price index on Thursday and the nonfarm payrolls (NFP) report on Friday.
“The smart rally in the past week suggests traders were a little short. The market will consolidate ahead of key inflation and payrolls data; a move back above 1980 is needed to awaken bulls’ animal spirits,” added Wong.
“Bad news for the economy will be good news for gold,” said ActivTrades senior analyst Ricardo Evangelista in a note.
(With files from Reuters)
