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.
Gold advanced as traders assessed the Federal Reserve’s interest-rate path after fresh US economic data and continued strength in the dollar.
Prices paid to US producers rose in September by more than expected, suggesting inflationary pressures will take time to moderate and keeping the Fed on its aggressive rate-hike path. Bullion edged higher after briefly dipping following the producer price index report.
The precious metal continues to be caught in movements in currency and rates markets, which are roiled by comments from Bank of England Governor Andrew Bailey on removing emergency market support by the end of the week. Monetary tightening by global central banks this year has sent down bullion almost 19% from a March high.
“Gold prices did not get any favors from a hot PPI report,” said Ed Moya, senior market analyst at Oanda. The report “supports the argument that we won’t see a Fed pivot anytime soon. Gold is battling a strong dollar that won’t stop given last month’s Japan intervention has failed and the BOE’s confirmation of the bond-buying end date.”
All eyes will be on critical US inflation data later in the week. A higher-than-expected consumer price index print could weigh on the metal if investors anticipate more hawkish action by the Fed.
Spot gold was up 0.2% at $1,689.94 an ounce as of 10:48 a.m. in New York, after earlier falling as much as 0.3%. The Bloomberg Dollar Spot Index was up nearly 0.2%. Silver, platinum, and palladium fell.
(By Yvonne Yue Li, with assistance from Atul Prakash, Eddie Spence and Sing Yee Ong)
Comments