Gold prices surged over $10 today, putting an end to its two-day decline. The demand for the yellow metal re-emerged after a series of explosions rocked Brussels, sending the equities in Europe down and safe haven assets higher.
Gold bucks two-day trend
Gold Futures for April delivery were seen trading 0.88% up at 1,255.10. David Govett, head of precious metals at Marex Spectron, said that prices are signalling a diminished appetite for riskier assets.
Belgium woke up to deadly blasts today, which claimed many lives and sent the prices of precious metals up. However, prices eased down a bit later while equities pared some losses. Other safe haven assets such as the yen, the dollar and 10-year German government bunds witnessed an upswing in demand as well. If analysts are to be believed then the rally in gold, which is largely on account of Belgium explosions, is only short-lived. It is widely expected that gold prices could slip towards the later part of the day as markets move over to other developments.
Kinross’ Maricunga mine
Among the gold mining companies, Kinross Gold Corporation (USA) (NYSE:KGC) witnessed a setback after the Chilean government ordered it to shut down the water system of Maricunga mine following environmental damage. In response, the company has issued a statement reassuring that it has taken adequate measures to mitigate the environmental damages. The company has also reached out to legal counsel in a bid to settle the issue amicably with the SMA regulator.
New Gold Inc. (USA) (NYSEMKT:NGD) received a downgrade by RBC Capital Markets. The research firm has revised its outlook on the company to ‘Sector Perform’ now from its earlier rating of ‘Outperform”.
IAMGOLD Corp (USA) (NYSE:IAG) published a statement disclosing that it had financed the development of Westwood mine through the issuance of flow-through shares and had sold its gold bullion investment during the first quarter of the year. The company had received net proceeds of $170.3 million through the sale of 135,148 ounces of gold bullion.