Gold Extends Losses After Rate Hike Speculations Firm

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gold mountain

Gold and the corresponding SPDR Gold Trust (ETF)(NYSEARCA:GLD) prices extended their early day losses in the premarket session this morning. Weakening in the commodity is attributed to a downbeat outlook after Federal Reserve Chair Janet Yellen’s comments last week added to the expectations of an early rate hike in the U.S.

Eyeing data this week

Gold for June delivery fell 0.24% to $1,213.75 as forex traders continue to cover their positions. A series of hawkish comments from the Fed has already sent gold tumbling by 7% alone in May. The state of other commodities was no better as silver futures for July delivery declined 1.07% to $16.095.

During the week, commodity traders will focus on key economic events, which include U.S. nonfarm payrolls data due to be released on Friday. The data will be critical to evaluate the Fed’s future trajectory.

Sibanye expects work to start as usual

In the latest in the mining industry, Sibanye Gold Ltd (ADR) (NYSE:SBGL) informed its shareholders that it is expecting all its workers to return to work this week. The company had obtained a court injunction over the weekend to prevent a strike at its Kroondal Platinum operations. Reports surfaced that the Association of Metalworkers and Construction Union had called a strike for want of transport facilities. Earlier this month, Sibanye’s CEO, Neal Froneman, had indicated that they are eyeing a third platinum acquisition before the end of this year.

Meanwhile, a Reuter’s report revealed that Indonesia’s mining ministry is currently in the process of renewing the export licence of Newmont Mining Corp (NYSE:NEM) local unit. After renewal, the local unit could export up to 419,757 tonnes of copper concentrate from its mine in Batu Hijau during the next six months.

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