Gold price tumbles on reports of de-escalating Middle East tensions
Gold plunged 3% after Axios reported that Israel and Lebanon have accepted the terms of a ceasefire agreement.
Newmont Corp on Tuesday reported a weaker-than-expected third-quarter profit as the world’s biggest gold miner was hurt by lower gold prices, higher input costs, and a tight labor market.
Gold prices were down 8% in the quarter, their worst since March 2021, primarily driven by hawkish interest-rate hikes by central banks around the world in the face of unrelenting inflation.
The miner said its third-quarter gold production rose to 1.49 million ounces from last year’s 1.45 million ounces, primarily due to higher ore grade milled at Ahafo, Akyem, and Boddington mines. However, its realized gold price fell by $87 to $1,691 per ounce of gold.
All-in-sustaining costs (AISC) for the quarter, an industry metric that reflects total expenses, rose to $1,271 per ounce from $1,120 per ounce.
The company’s adjusted profit fell to $212 million, or 27 cents per share, in the quarter that ended Sept. 30, from $483 million, or 60 cents per share, a year earlier.
Analysts on average had expected income of 36 cents per share.
Newmont also reaffirmed its 2022 outlook.
(By Arshreet Singh; Editing by Sriraj Kalluvila and Maju Samuel)
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