The Weekly Dig
Haywood Mining Team
Gold Price Rises as U.S. Rates Unchanged and
Presidential Campaign Heats Up
§
As expected, U.S. interest rates were held
steady, as continued global economic uncertainty weighed on the minds of the
Federal Reserve’s board members. Following the announcement, a statement from
the Federal Reserve suggested a somewhat positive outlook for the U.S. economy,
stating that "near-term risks to the economic outlook have
diminished" and the job market is "improving". The Fed's
decision was not unanimous, however, as one of the 10 board members voted to
raise the rate but was outnumbered. Nevertheless, expectations of a rate hike
before the end of the year appear to be gathering momentum. The week also saw
Hillary Clinton accept the Presidential Nomination for the Democratic Party;
with both candidates now confirmed, the stage is set for a fiery campaign
leading to the November election. On the back of both announcements, and worse
than expected GDP numbers, the price of gold gained 2% for the week and
finished at $1,357 per ounce. Gold equities rose accordingly, with the
S&P/TSX Global Gold Index regaining much of the losses incurred nsince
hitting a multi-year high of 277 on July 11. The Index rose 7% for the week.
Meanwhile, the S&P/TSX Venture Composite Index continued its steady rise
towards the 800 mark, up 3.5% to finish at 796 on Friday. Silver, Platinum and
palladium were also higher, finishing at $20.40 (á3.5%), $1,148 (á5.7%) and $709 (á3.4%) per ounce respectively. Base metals were mixed;
lead (â0.8%) was down, while copper (á0.1%), nickel (á2%) and and zinc (á0.1%) rose to finish at $2.23, $4.80 and $1.02 per
pound. WTI prices fell 7%, while the UxC Weekly Spot Price of uranium was up (á4.5%) closing at $26.13 per pound on Friday.
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