Gold prices came off 2-year peak levels as opinion polls ahead of the Brexit referendum quickly changed market perceptions. Gold Futures for August delivery have fallen to $1,278 in the premarket hours.
Momentum in gold drops
Three opinion polls ahead of the referendum this week showed the ‘Remain’ campaign taking the lead over the ‘Leave’ campaign. The shifting outlook around Brexit fueled a rally in Asian equities as well as sterling, dampening gold. INTL FCStone analyst, Edward Meir, said that markets are expected to remain jittery at least until the referendum.
Meanwhile, Mark To, Wing Fung Financial Group’s head of research, said that gold is expected to stabilize at the current level near $1,300 while it could experience a pull-back to $1,250-$1,260. He predicts gold to trade around $1,300-$1,400 level towards month end. Despite lower gold prices, optimism stood intact for SPDR Gold Trust (ETF) (NYSEARCA:GLD), which witnessed a rise in holdings by 0.59% to 907.88 tonnes last week.
Kinross shuts Tasiast mine temporarily
In miners, Gold Standard Ventures Corp (NYSEMKT:GSV) announced the departure of one of its board members. The company said in a press release that David M. Cole resigned from the Board of Directors in order to follow other business goals.
McEwen Mining Inc (NYSE:MUX) reported a change of its security position in Golden Predator Mining Corp. The company stated that it became an insider of Golden Predator on June 16, 2016, following the cancellation of 10,312,154 common shares by the latter, which was later published in a news report. After the cancellation, the controlling share of McEwen Mining over issued Golden Predator common shares is 5.84% and 11.04% after taking into account that warrants held by the company are exercisable.
Kinross Gold Corporation (USA) (NYSE:KGC) has temporarily shut down its operations at Tasiast mine in Mauritania after a labor inspection led to the withdrawal of invalid work permits of the company’s expatriates. Recommencement of operations at the mine will depend upon the negotiations between the company and the government in Mauritania.