Gold in mixed territory, welsh mine to be revisited

The gold price has fallen ahead of the Federal Reserve monetary policy meeting today, the results of which will be announced at 18:00 GMT.

Spot gold fell 0.27% to $1,245.16 at 06:29 GMT, whilst US gold futures for August fell 0.61% to $1,244.50.

The markets don’t see a rate rise happening this time around, but investors will be looking for signs that monetary tightening and the dispersal of the Federal Reserve’s bond holdings could occur as early as September.

“At this stage, we would rather be neutral on gold as Fed wording could throw the market off (in either direction),” said INTL FCStone analyst Edward Meir to Reuters.

Gold is also being helped by the continuing doubt over president Donald Trump’s ability to push through tax cuts and invest money into the US economy. Such a policies would likely boost the dollar and weigh on gold, whilst also increasing the possibility of another rate hike.

In other news a Welsh mine in Anglesey that reportedly contains up to £206.5 million worth of gold, zinc, silver, copper, and other metals could be reopened.

The mine, which is located in the area around Parys Mountain, has been closed for a century. Anglesey Mining, the owner, commissioned a scoping report which estimated the cost to reopen the site and to  mine 1,000 tonnes a day for eight years at £40.5 million.

The estimated annual output would be 14,000 tonnes of zinc, 7,200 tonnes of lead and 4,000 tonnes of copper, while gold would also be recovered, said the BBC.

In Walesonline, Bill Hooley, Anglesey Mining’s chief executive, said: “We are very pleased with the results of the scoping study which demonstrate a viable mine development at Parys Mountain and a healthy financial internal rate of return.”

“This is the first detailed economic study of the Parys Mountain project for a number of years; the estimated pre-production capital cost for the project is at a level that could be financeable.”

Photo: The copper deposits in Parys Mountain. Credit: Mark.murphyLicensed under CC BY-SA 3.0.

Link to this article: : http://www.goldmadesimplenews.com/gold/gold-in-mixed-territory-welsh-mine-to-be-revisited-13296/

Posted by on Jul 26 2017. Filed under Gold News, Mining. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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