Gold Oscillates As Markets Settle Down After Brexit

Andy Parker
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Gold Oscillates As Markets Settle Down After Brexit

Gold prices are unsure of where to go as investors recover from Brexit blues. Demand for safe-haven assets has started easing as market sentiment is returning to stability. During early European hours, Gold Futures for August delivery were trading 0.51% lower at $1,320.25.

Gold appetite reduced for now

Vyanne Lai, analyst at National Australia Bank, said that the market is turning away from Brexit for lack of any new development or decision by Britain on proceeding to invoke Article 50. At the same time, markets have started believing that the Federal Reserve will not announce any rate hikes this year. In view of this outlook shift, Credit Suisse Group AG (ADR) (NYSE:CS) went ahead and raised the short-term as well as long-term price forecast for gold and silver.

The research firm noted prolonged macro and political uncertainty in play after the Brexit result. Credit Suisse anticipates gold to test $1,500 by early 2017. Holdings in SPDR Gold Trust (ETF) (NYSEARCA:GLD) further rose to 950.05 tonnes, up by 0.28% during the previous session according to trust managers.

Seabridge embarks on environmental program

Meanwhile, Seabridge Gold, Inc. (NYSE:SA) initiated an environmental program to remediate areas for historical mining at Iskut property in northwestern British Columbia, which includes Johny Mountain Mine acquired from SnipGold. The program is aimed to ensure compliance in accordance with the existing authorization. Alongside this, the company also aims to develop remediate programs to lessen the impact that stemmed from previous mining activities. The program cost is evaluated at $750,000 for this year.

IAMGOLD Corp (NYSE:IAG) has received a rating upgrade from analysts at CIBC. The research firm has now revised the rating to ‘Sector Perform’ from ‘Sector Underperform’.

Apart from this, President and CEO of Primero Mining Corp (NYSE:PPP), Ernie Mast, told Bloomberg during an interview that the Canadian government will bring up tax issues with the Mexican delegation from the company. Mast maintained that they have been treated unfairly by Mexican tax authorities and continue to object to taxation levels.