Military Metals acquires past-producing antimony project in Nevada
The Last Chance property is situated in Nye county, Nevada, approximately 18 km due west of the Round Mountain gold mine operated by Kinross Gold.
Gold prices traded in a tight range on Wednesday as traders positioned for the US Federal Reserve’s interest rate decision and Chair Jerome Powell’s comments on the path of future hikes.
Spot gold gained 0.2% to $1,946.25 per ounce by 12:15 p.m. ET, settling down around the $1,950 level after a volatile start to the week. US gold futures rose 0.5% to $1,950.30 per ounce in New York.
[Click here for an interactive chart of gold prices]
On Monday, the precious metal briefly rose above the key $2,000-an-ounce level in a rally driven by safe-haven demand following the collapse of Silicon Valley Bank and share-fall at Credit Suisse.
However, prices have since retreated by around $70 after the rescue of Credit Suisse, with some traders booking profits.
Investors are now awaiting the outcome of this week’s Fed’s meeting and subsequent decision on interest rates. According to the CME FedWatch tool, the US central bank is largely expected to increase rates by 25 basis points, while some Wall Street banks are split over a hike or a pause.
“The market’s interpretation at this point is that a higher terminal rate is going to translate into sooner cuts, and that is really the focus here…gold prices are likely to rise as the probability of Fed cuts increases as opposed to where the terminal rate lies exactly,” said Daniel Ghali, commodity strategist at TD Securities, in a Reuters note.
While the dollar was slightly lower, making gold cheaper for holders of foreign currencies, US benchmark Treasury yields were close to their highest in a week, which curtailed bullion’s gains.
Still, some are optimistic of a strong resurgence in the safe-haven metal, with Sprott CEO Whitney George predicting gold to reach new highs in a Bloomberg interview.
After a market downturn, “the minute liquidity is restored back into the global market, gold seems to be always be the first thing to recover, and then often hits new highs,” he said.
(With files from Reuters)
