Market Exclusive

Gold Stays Near Six-Week High But All Eyes On Fed

SPDR Gold Trust (ETF) (NYSEARCA:GLD) and corresponding underlying prices continue to trade near six-week highs with a slight drift downward as investors book profits following a recent rally. The Federal Open Market Committee (FOMC) meeting will conclude today and will set the direction for bullion trading going forward.

Fed and Brexit weighs on outlook

Although the Federal Reserve is likely to leave interest rates unchanged, gold futures for August delivery were trading 0.25% lower at $1,284.90 during early European hours. In the previous session, price tested $1,293 as investors feared that Britain will vote to exit the European Union during next week’s referendum.

Metal prices have been up by nearly 6% so far this month as an increasing number of traders have trimmed expectations of an early hike in U.S. interest rates. In other metals, silver futures for July delivery drifted higher by 0.03% to $17.43.

Primero acquires concession area

Among miners, Primero Mining Corp (NYSE:PPP) announced the acquisition of a large concession area that is located adjacent to its Mexico-based San Dimas mine. The company noted that it has added nearly 30,192 hectares of area lying between the San Dimas mine and 32 Kms south of the Ventanas exploration property. Following this acquisition, the company’s total concession area now adds up to 68,628 hectares in the region.

Richmont Mines Inc. (NYSEMKT:RIC) disclosed that the S&P Dow Jones Canadian Index Services announced the inclusion of the company to the S&P/TSX Global Mining Index and the S&P/TSX Global Gold Index. This addition will become effective on June 17.

Meanwhile, Gold Resource Corp. (NYSEMKT:GORO) shared drill highlights following the completion of its first exploratory drill program at the Gold Mesa exploration property in Nevada. According to the associated press release, the company has intercepted high-grade gold at the exploration site, which includes 15.24 Meters of 6.27 g/t and 33.54 Meters of 1.89 g/t.

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