Gold price has mixed feelings, mining violence continues

After a run of bearish sentiment, the gold market is trying to find its feet. Last week saw  the gold price suffer its largest seven-day loss of the year, suffering multiple blows from the Macron victory in France, and a double whammy of economic data and a strong dollar from the US.

Spot gold currently stands at 1,225.40, with gold futures for June barely changed at $1,226.10 as of 9:34 GMT, compared to settling at $1,226.90 last Friday. The ICE U.S. Dollar Index traded up 0.5% yesterday, which does not usually bode well for the gold price, but may be offset by weakness in US equities.

Gold has had a solid bull run as of late, but strength in economic data and a more stable outlook for Europe makes the safe-haven asset look comparatively less attractive for the time being. Other factors causing mixed feelings over the commodity include weaker than expected data from China and the prospect of another rate hike by the Federal Reserve.

Marketwatch quoted Julian Phillips, co-founder of Gold Forecaster, as saying “The Macron victory implies that the [European Union] will hold together in the future and that the euro will not collapse”.

As we reported yesterday, violence over illegal mining continues in Colombia. The Latin American nation has called for greater curbs on international gold purchased from the region. “There’s a responsibility on the part of buyers to make certain what the origin of the gold is that they are acquiring,” said Colombian Mining and Energy Minister German Arce, quoted in Bloomberg. “My fear is that there’s a lot of illegally-extracted gold that ends up in central bank vaults.”

Less than a fifth of Colombia’s gold is produced legally, and often causes environmental damage such as mercury poisoning of rivers and deforestation.

Violence continues in other countries of mining operations, notably Zimbabwe, where up to 15 miners have died in the skirmishes at the Sabi gold mine in the town of Zvishavane. Brazil has also experienced mining difficulties. Since 2007 14,000 hectares of jungle have been cut down in an effort to strike riches. Amazonas state prosecutor Leonardo Galiano was quoted in Reuters saying “We want the government to start campaigns against these environmental crimes.”

Featured Image by Kevin Walsh – Ball mill & stamp mill, gold ore processing centre, Shamva, Zimbabwe. Edited with TVScanline. https://www.flickr.com/photos/86624586@N00/

Link to this article: : http://www.goldmadesimplenews.com/gold/gold-price-has-mixed-feelings-mining-violence-continues-13131/

Posted by on May 9 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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