Gold Prices Maintain Near Monday Peak As Federal Reserve’s Meet Kickstarts Today

Gold Prices Maintain Near Monday Peak As Federal Reserve’s Meet Kickstarts Today

Gold prices were seen hovering near four-week highs during the European session as the U.S. Federal Reserve’s two-day policy meeting will kickstart today.

Yellow metal near four-week highs

The majority of analysts are expecting that the Central Bank will keep interest rates as is due to a lack of encouraging economic data, particularly after May nonfarm payroll data did not come as expected. Moreover, markets were anxious over the Brexit referendum, which is due next week.

Futures for August delivery fell 0.29% to $1,283.15, but maintained close to $1,287, its peak level on Monday. Fund manager Michael Hasenstab said that US Treasuries are not a safe bet, particularly when increasing inflation and full employment is exerting pressure on central bankers to hike rates. SPDR Gold Trust (ETF) (NYSEARCA:GLD) holdings increased 0.27% to 896.30 tonnes, which marks its highest level since October 2013.

Strike called off at Tasiast mine

In the gold mining industry, Kinross Gold Corporation (NYSE:KGC) provided an update stating that the three-week strike at its Tasiast mine in Mauritania has come to an end. Kinross added that it will commence renegotiations on new labor agreement alongside other issues within 10 days. The strike, called by unionized workers at the mine, did not disrupt any of the company’s expansion plans at the site.

Terence Philip Goodlace will take over as non-executive director of the Board of Directors of Gold Fields Limited (ADR)(NYSE:GFI), starting July 1, 2016. Goodlace is currently serving as both CEO and member of the Impala Platinum Holdings Limited Board. Goodlace comes with a rich mining industry background, reported Gold Fields in its Press Release.

Eldorado Gold Corp (NYSE:EGO) informed stakeholders about the renewal of its revolving credit facility. As per the amended and restated credit agreement, the company has available credit of $250 million alongside an accordion feature of $100 million as well as extension of term to June 13, 2020.