Gold price dips while Dubai paints its latest project gold
The gold price has inched slightly downward. According to Reuters spot gold was down 0.1 percent at $1,250.66 an ounce by 07:26 GMT, while U.S. gold futures slipped 0.3 percent at $1,250.
Part of the reason for the slump is the US dollar. Since slipping after Trump’s failed healthcare bid, it has re-established itself to reach a 9-day high against a basket of other currencies. The Chicago Federal Reserve President Charles Evans hinted at further Fed rate hikes during the course of the year, further giving a boost to the greenback.
Whilst Article 50 has now been triggered, which should provide a boost given the uncertainty of the negotiations of Britain’s withdrawal from the EU, this did not do much to keep gold buoyant. The government’s move was telegraphed in advance, which allowed markets to adjust over time. What will be more important are the terms and economic arrangements under which Britain leaves the EU.
Another factor preventing a rise in the gold price is the fact that centrist Emmanuel Macron has been tipped to win the first round of the French presidential elections, and predicted to win the May 7 runoff against Marine Le Pen, according to an Elabe poll from Wednesday.
In mining news Roger Murphy, CEO of Sula Iron & Gold, has commented that he believes there are good prospects for the Ferensola project in Sierra Leone. Proactiveinvestors reported that he has visited the drilling site, and quoted him as saying “we believe that there is a lot more gold to be found at Ferensola and our board and operational team is focused on that process”.
El Salvador has become the first ever country to impose a nationwide ban on metals mining. It was deemed to be a protective measure as the country has scant supply of clean water.
The Dubai frame, a project designed to promote tourism in the Middle Eastern city, has recently been covered in stainless steel gold cladding. The Structure is 150m high and and 93m wide. The bridge that connects the two towers is 100 square metres and the whole project cost Dh160m.
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