Gold price rises as markets waver over Obamacare repeal
The gold price has risen above $1250 amid slumping stocks, as equity investors fret about the impact the upcoming vote on whether Obamacare will be repealed may have on the markets.
The bill is likely to fail and Obama’s Affordable Care Act remain. The New York Times reported that “No more than 22 Republicans can vote against the bill if it is to pass,” but 29 look set to hamper Trump’s efforts to push it through.
Bullionvault reported that the daily commodities note from Commerzbank, the large German financial services firm, stated that the outlook for the gold price was good:
“The chances of the gold price rising above $1250 are good [now that] hopes of ‘Trumpflation’ are dwindling…putting pressure on the US Dollar, US stock markets and US bond yields.”
By contrast, gold futures have settled lower, ending the five days of gains it had been enjoying this week. Wednesday saw the highest numbers since March 1st at $1,249.70 an ounce. The current gold futures at 10am is down to $1,243.50 -3.30 -0.26%.
In mining news Acacia Mining has been in talks with the Tanzanian government to lift the ban on gold and copper exports from the country. The London-based mining giant, which acquires 30% of its revenues from gold and copper, was due to merge with Canada’s Endeavour Mining, but halted talks after Tanzania’s ban.
Elsewhere, Atlas Obscura has reported that there is a large amount of gold in the oceans, but it is too dispersed to make extraction economically viable:
“According to the National Ocean Service, our oceans hold some 20 million pounds of gold, suspended in normal seawater. But this gold is spread throughout the normal mineral content of seawater to the tune of ‘parts per trillion’. There are also gold deposits within the seafloor, but profitably mining them is far beyond our current abilities.”
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