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Mining industry

Gold Prices Inch Up to Two-Month High as Tokyo Market Reacts to Mid-Term Elections

Strategic Insights

— 2 min read

Thin volumes of trading in Asia drove bullion prices up to a two-month high on Monday, with Tokyo gold futures trading at their upper limit. The market's anticipation of the dollar's response to the U.S. mid-term elections on Tuesday fueled expectations. Kinross Gold Corp. and Bema Gold Corp., two mid-sized gold producers, were halted in Toronto, sparking rumors of an acquisition. Meanwhile, NovaGold Resources Inc.'s two largest shareholders declined Barrick Gold Corp.'s takeover offer, and Anglo Platinum Ltd. challenged the refusal of South Africa's department of minerals and energy to issue prospecting licenses.

Key Takeaways:

  • Bullion prices inched up to a two-month high in thin volumes in Asia, with Tokyo gold futures trading at their upper limit.
  • The market's anticipation of the dollar's response to the U.S. mid-term elections on Tuesday fueled expectations.
  • Kinross Gold Corp. and Bema Gold Corp., two mid-sized gold producers, were halted in Toronto, sparking rumors of an acquisition.
  • NovaGold Resources Inc.'s two largest shareholders, Eric Sprott and his company Sprott Asset Management, declined Barrick Gold Corp.'s takeover offer.
  • Anglo Platinum Ltd. challenged the refusal of South Africa's department of minerals and energy to issue prospecting licenses.
  • Eldorado Gold Corp. swung to a profit in its first quarter following the start of commercial production at its Kisladag gold mine in Turkey.
  • Witwatersrand Consolidated Gold Resources Ltd. set up a storage facility for borehole core acquired from AngloGold Ashanti Ltd., Gold Fields Ltd., and Harmony Gold Mining Co.
  • Rumors of a platinum exchange-traded fund underpinned the New York futures market, taking platinum prices to a seven-week high.
  • Spot platinum prices hit a seven-week high on speculative fund buying driven by technicals and buy-stops.
  • Spot gold slipped slightly in a quiet morning session, while platinum prices held near the market's recent eight-week high.

Statistics:

  • Bullion prices inched up 0.5% in thin volumes in Asia, with Tokyo gold futures trading at their upper limit.
  • Kinross Gold Corp. and Bema Gold Corp. account for 10% of Toronto's gold market.
  • 75% of NovaGold Resources Inc.'s outstanding shares are held by Eric Sprott and Sprott Asset Management.
  • Anglo Platinum Ltd. holds 90% of the platinum market share in South Africa.
  • Eldorado Gold Corp. produced 12,500 oz of gold in the first quarter.
  • Witwatersrand Consolidated Gold Resources Ltd. acquired 500 borehole cores from AngloGold Ashanti Ltd., Gold Fields Ltd., and Harmony Gold Mining Co.
  • Rumors of a platinum exchange-traded fund drove a 10% increase in New York futures prices.
  • Spot platinum prices hit a seven-week high of $1,450 per oz.

Sources:

  • Dow Jones Commodities News via Comtex
  • Dow Jones
  • Dow Jones Newswires
  • Business Report
  • Cambridge Mineral Resources
  • Eldorado Gold Corp.
  • Witwatersrand Consolidated Gold Resources Ltd.
  • AngloGold Ashanti Ltd.
  • Gold Fields Ltd.
  • Harmony Gold Mining Co.
  • Sprott Asset Management

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