Gold Takes Break From Rally After Investors Rush To Book Profits

Gold Takes Break From Rally After Investors Rush To Book Profits

SPDR Gold Trust (ETF)(NYSEARCA:GLD) buyers turned into sellers this morning to book profits in bullion after it recorded immense gains since Thursday’s Brexit vote. Gold Futures for August delivery traded 0.57% lower at $1,317.15.

Profit booking picks up

BullionVault CEO Paul Tustain said that its users had been net sellers after the Brexit vote, which resulted in liquidation of an entire ton of gold. Tustain added that their users are now reaping profits by selling gold to banks at higher margins following Friday’s event.

Wolfgang Wrzesniok-Rossbach, chief executive at Degussa, also confirmed receipt of numerous gold inquiries, particularly related to selling. Wrzesniok-Rossbach said that the surge in gold demand took a pause after investors re-evaluated the Brexit reality and figured out that the event is not leading to any immediate market meltdown.

Richard Hayes, chief executive of the Perth Mint, stated that their customers buying gold will resume only if current price levels are sustained.

NovaGold books Q2 losses

In miners, NovaGold Resources Inc. (NYSEMKT:NG) posted a loss of $9.1 million during the second quarter. Net loss per share came in at $0.03, however, the company is firm on its $25 million spending estimate for the year. It said that $112 million in cash and term deposits at the end of second-quarter provides them room to progress into expansion.

Meanwhile, New Gold Inc. (NYSEMKT:NGD) provided an update in relation to its exploration program at the New Afton C-zone as well as Peak Mines until now. The company said that it continues to register success in exploration at C-zone, which prompted it to boost mineralization as well as eye expansion near the zone.

Research firm Raymond James upgraded Eldorado Gold Corp (NYSE:EGO) following the improved outlook for gold stemming from the Brexit fallout. The company’s rating has been revised to outperform from neutral.