The Asia Miner

JUL-SEP 2018

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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the asia miner • volume 15 • issue 3 8 FEATURE: All that glitters is gold According to the newly released GFMS Gold Survey 2018, the average annual dollar gold prices rose a mere 0.5 per cent in 2017, which was "a stark contrast to all prior years this century which have seen moves (whether up or down) of more than 5% and typically double-digit". Regardless of this, gold bulls enjoyed a strong start to 2018. As the US dollar hit three-year lows, gold price edged up to its highest since August 2016, gaining more than 3 per cent to reach US$1,357.70 per ounce on 24 January 2018. "Relaঞvely solid global economic growth, coupled with the return of volaঞlity in the capital markets in February, created a stable environment for gold in Q1 – while equity markets around the world came under pressure, the gold price rose," commented Alistair Hewi, Head of Market Intelligence at the World Gold Council. But as the old adage says, "what goes up, must come down", and as the US dollar strengthened ahead of the US Federal Reserve's first rate increase for 2018, the yellow metal hit a low point on 20 March 2018, falling to US$1,308.40. A[er a fiul dance of forwards and backwards, and at ঞmes even sideways during the second quarter, gold prices seled at US$1256.23 at the start of the third quarter – the lowest for a most-acঞve contract since 21 March 2018. ALL THAT GLITTERS IS … GOLD, GOLD, GOLD Trying to pin a gold trend in the current market is like trying to pin water to a wall. Despite rising interest rates, monetary policy normalisation, and a still solidly performing stock market, gold held its ground in 2017. Still, in 2018, gold demand had a soft start to the year, reaching 973 tonnes (t), the lowest first quarter since 2008. The gold price itself appears not to go anywhere either. In spite this, gold mining companies are setting the pace for greening the industry

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