USGS releases first study to assess global earthquake risk to mineral supplies
Earthquakes have the potential to substantially affect mining operations, leading to supply chain disruptions that adversely affect the global economy.
Gold prices and gold-related shares have received bullish impetus from President Barack Obama’s second-term election win.
Gold prices reversed last week’s losses to tap a one-week high of $1,725 per ounce, with some analysts speculating that the precious metal will re-approach $1,800 prior to the year’s end. Gold futures for December also gained $8.80 an ounce to hit $1,723.80.
Obama’s election victory has been interpreted by markets as highly favorable for the precious metal due to expectations that a second term for the incumbent US president will mean further easing of monetary policy and greater inflation.
Over in Asia both gold miners and retailers of gold jewellery listed on the Hong Kong Stock Exchange enjoyed robust gains following news of the election outcome.
Zijin Mining (SEHK:2899), one of China’s largest gold miners and the operator of the largest open pit gold mine in the Middle Kingdom, rose 6.2% to HKD$3.27, while jewellers Chow Tai Fook (SEHK:1929) and Luk Fook (SEHK:0590) gained 4.96% and 5.34% respectively.
Prior to the election outcome veterans investors had anticipated bullish impetus for gold in the wake of an Obama win.
Earlier trading had also reflected expectations of a second-term for the incumbent candidate, with gold climbing back to the $1,700 level on Tuesday morning while voters were still at the polls.
Comments
Jack de la Vergne
The Gold Institute should make a special award to President Obama. There is a precedent: The Mine Managers Association of South Africa once awarded a gold medal (in absentia) to the Ayatolla Khomeini for then having done more than anyone else to advance the gold mining industry. [email protected]