Gold Pares Down But Close To Sixth Weekly Gains

Gold and the corresponding SPDR Gold Trust (ETF) (NYSEARCA:GLD) took a pause today as investors shifted their focus to U.S. non-farm payroll data that is due to release this morning at 8:30. However, the yellow metal still hovered close to a two-year peak as Brexit concerns continue to weigh on market sentiment.

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U.S. report key for markets

Gold Futures for August delivery dropped 0.41% to $1,356.45. A disappointing employment report today might set gold up for a sixth consecutive weekly gain. Brian Lan, managing director at GoldSilver Central, said that gold prices are witnessing a mild correction on account of profit booking. Ahead of the employment report in the U.S., analysts estimate that jobs growth will be stronger in June compared to the more-than-expected fall in May.

MKS Group trader, James Gardiner said that a positive employment number might result in short-term weakness in gold. However, he expects the precious metal to continue extending gains over the medium term. Meanwhile, Thomson Reuters’ Lipper service revealed that investors invested heavily in U.S. based gold funds since February.

Richmont starts Phase 2 program

In miners, a positive outcome from Phase I exploration drilling program at the Island Gold Mine has prompted Richmont Mines Inc. (NYSEMKT:RIC) to initiate a Phase 2 exploration program at the same site. The company noted that the results of Phase 1 exploration had attained their goals and supported the launch of its Phase 2 exploration program.

Gold Resource Corporation (NYSEMKT:GORO) shared an update wtih investors that it has sold an ownership stake in Canamex Resources Corp to comply with the regulations laid down by Canadian regulators. Gold Resources had bought 22,222,222 shares of Canamex in February 2014, representing 18.4% of the ownership of the latter. Since the stake is only restricted to investment purposes, Gold Resources continuously reviews its holdings and continues to sell shares periodically.

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