Tectonic Metals gets funding for gold exploration in Alaska
The company's Flat gold project is located 40 km north of the giant Donlin gold project.
The price of gold built on recent gains on Thursday reaching a two-week high after soothing words on US interest rates, stocks suffered major declines and worries the situation in Ukraine could deteriorate into chaos led to safe-haven buying.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery in late afternoon trade exchanged hands for $1,320.50 an ounce, up more than $14 from yesterday’s close.
The metal touched a two-week high of $1,224 earlier in the day.
Russia on Thursday warned Ukraine that it could cut of its gas supplies over more than $2 billion of unpaid bills. Pipelines crossing Ukraine supply 15% of Europe’s natural gas.
At the same time Nato warned that a Russian force of 40,000 troops on the Ukrainian border was “at high readiness”.
Gold’s status as a hedge against inflation was also burnished after minutes from the US Federal Reserve released overnight showed the bank would continue scaling back its stimulus measures at a steady pace, with an early rise in interest rates unlikely.
US stocks – particularly the tech sector – were slammed on Thursday with the Nasdaq Composite posting its worst session in more than two years. The blue-chip Dow Jones losts 267 points while the broader S&P 500 gave up just over 2%.
More investors believe a correction in frothy US stock markets are long overdue and are rotating back into gold thanks to its perceived status as a storer of wealth.
Marc Faber, editor and publisher of the Gloom, Boom & Doom Report, told CNBC a 1987-type of crash in the S&P of 30% is coming in the next 12 months.
