Gold hitting new highs over North Korea while Acacia looks to turn back on Tanzania

Yesterday evening the gold price hit its highest point in just under a year. Spot gold reached $1,377.40 before settling at $1,330.71 at 09:49 BST today.

Gold rose in response to the combination of the escalating situation in North Korea, and a global sell-off in the stock markets. The dollar depreciated against the yen and the Swiss franc, meaning gold denominated in dollars became less attractive.

“Safe-haven buying has been fairly strong over the past few days but there’s still a level of uncertainty about what the North Korean crisis will mean for markets”, said ANZ analyst Daniel Hynes in Reuters. However, traders seem to expect gold to continue to rise, as shown by gold futures, which were up 0.8% at $1,340.80.

“Gold prices continued to point north this morning, suggesting that risk appetite remains underwater”, said OCBC analyst Barnabas Gan in Reuters. “Concerns over geopolitical tensions will likely dominate sentiments for the week ahead.”

In mining news the ongoing conflict between the Tanzanian government and Acacia mining has resulted in the FTSE 250 firm winding down operations in the African state. The 2,000 strong workforce will be “significantly reduced”, in addition to lowering production targets by 100,000 ounces.

Regulatory and tax disputes have plagued Acacia’s relationship with Tanzania, which reached their peak late last July when senior a employee was prevented from leaving Tanzania as part of a dispute with the Tanzanian government over a £145 billion tax bill. However the largest impediment to the company’s continued activity has been the ban on copper and gold exports which was enacted in March.

Elsewhere on the African continent, the Zimbabwean government has completed a probe, initiated in August, into their domestic mining industry. The deputy minister of Mines and Mining Development, Fred Moyo, was quoted in local newspaper The Chronicle as saying his team had looked into production and trading circles.

The probe was launched to root out corruption and illegal operations, in addition to seeing whether foreign currency the government invests into mining operations is making its way into illicit markets. Mining makes up 62% of exports and is the largest generator of foreign currency for Zimbabwe, which is famous for its high inflation rates of its own dollar.

Photo credit: naruedom, istock

Link to this article: : http://www.goldmadesimplenews.com/mining/gold-hitting-new-highs-over-north-korea-while-acacia-looks-to-turn-back-on-tanzania-13381/

Posted by on Sep 5 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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