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Unemployment data pushes gold down but Trump scandal pressure remains

Gold has dipped as markets refocus away from the ongoing Trump scandal to assess incoming economic data. Yesterday spot gold was trading at $1251.18 per ounce according to MarketPulse, down from $1,260 yesterday.

US unemployment claims have dropped to 232,000, lower than the forecast of 240,000. Additionally, the Philly Fed Manufacturing Index soared to 38.8, crushing the forecast of 19.9 points, reported MarketPulse, suggesting robust figures will put further downward pressure on a gold price readjustment.

Overall though the yellow metal has gained 1.5% this week, as the safe-haven commodity has benefited from the political chaos which has gripped Washington. A formal enquiry is now underway to determine the extent of Russian intrigue in US politics. Such an outlook will undoubtedly weight on gold’s future potential as politicians and media openly discuss the possibility of impeachment. Further developments could see gold surge once more.

In mining news Gold miner Stratex is set to buy Australia’s Crusader Resources for $54.2m Australian dollars (£31m) as part of a growth push, according to City AM.

Stratex, which is listed on London’s Alternative Investment Market (Aim), will acquire Crusader at 18 Australian cents per share, a 56.5 premium on its stock price, dependent on regulatory and shareholder approval.

Crusader’s chairman, Stephen Copulos, said: “The combined company will be able to leverage off its significant balance sheet, strong portfolio of gold development and exploration assets and highly regarded combined management team to move forward to project development in the near-term.”

Marcus Engelbrecht, the boss of Stratex, told the financial paper he believes the deal “has the potential to provide significant value to our shareholders and take us a step closer to operating highly deliverable gold mines”.

Link to this article: : http://www.goldmadesimplenews.com/gold/unemployment-data-pushes-gold-down-but-trump-scandal-pressure-remains-13159/

Posted by on May 19 2017. Filed under Gold News. 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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