Gold Prices Pare Gains But Hold Near Two-Week Highs

Gold Prices Pare Gains But Hold Near Two-Week Highs

Gold prices fell marginally on Friday but held near two-week highs. The recovery in the U.S. dollar appeared to be fading optimism for gold. However, the Federal Reserve’s cautious tone on rate hikes capped the losses in the yellow metal.

Dollar finds relief

During the Asian trade, Gold futures contract for June delivery slipped 0.27% to $1,234.10. Gold prices have surged by nearly 1.3% this week nonetheless. Meanwhile, Fed Chair Janet Yellen has stated that the U.S. economy is on track which could pave the way for further interest rate hikes in the coming months. The statement, which came on Thursday, has once against inspired positive sentiment among investors and traders.

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Alongside Yellen, San Francisco Fed President John Williams reiterated that the current pace of the U.S. economy is optimal, and further pick-up in economic aspects will provide room for at least two rate hikes this year.

Mining industry concerns remain

Gold prices have surged 16% so far this year, giving a ray of hope to the struggling mining industry. However, miners in Africa still believe that bad times are far from over.

According to a Reuters report, Pershing Gold Corp (NASDAQ:PGLC) has filed for a stock shelf of up to $12.3 million. Recently, ROTH Capital Partners, LLC initiated its coverage on the company. Pershing noted that the initiation of the analyst coverage comes at a time when it is approaching a number of key near-term milestones for the company.

Major gold miner Goldcorp Inc. (USA) (NYSE:GG) revealed the details of its investment in Probe Metals Inc. As per the agreement between the two companies, Goldcorp has agreed to subscribe 4,400,000 common shares of the Probe Metals at a price of $0.66 per share, amounting to $2,904,000.

Lastly, Agnico Eagle Mines Ltd (USA) (NYSE:AEM) has informed its shareholders that its first quarter results for the fiscal year 2016 will be released on April 28, 2016, following the close of trading.