Gold prices pared down their early day gains ahead of testimony by Federal Reserve Chair, Janet Yellen, later today. At the same time, the long awaited Thursday Brexit referendum that will decide the future of Britain’s status in the European Union also pulled down the precious metal.
Gold ETF holdings grow
Gold Futures for August delivery were seen trading down at $1,271 this morning. However, SPDR Gold Trust (ETF) (NYSEARCA:GLD) holdings continued to rise to 908.77 tonnes, up by 0.10%, reflecting its highest levels since September 2013. Yellen’s comments today come after her appearance last week when the Fed had decided to stay put on interest rates.
Meanwhile, two fresh opinion polls suggest that Britain is likely to stay in the EU. However, a third poll found majority support for Brexit. A final vote by Britain on June 23 will be decisive for the European economy that might slip into recession once again if the U.K. decides to exit. Ahead of this important event, Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said that Brexit could mean moderate impact for the U.S. economy. He ruled out the occurrence of big financial risks, though.
$140 million preliminary approval
In miners, Timmins Gold Corp (NYSEMKT:TGD) updated that it has repaid its secured credit facility worth $10.22 million to lenders, Sprott Resource Lending Partnership and Goldcorp Inc. (NYSE:GG) Alongside the repayment, the company will also pay a bonus of $204,450 to Sprott and $70,416 to Goldcorp.
U.S. District Judge, Richard M. Berman, has granted preliminary approval to a $140 million class action settlement against Barrick Gold Corporation (NYSE:ABX). This decision will be relevant to shareholders of the company, who bought its shares between May 7, 2009, and Nov 1, 2013. This settlement comes after three years of litigation involving Barrick’s Pascua-Lama mine and shareholders, where plaintiffs alleged that the company misrepresented its compliance status in accordance with environmental regulations.