Gold prices in the global market kept a flat range on the early hours of trading on Wednesday as the dollar edged up higher in the market. Palladium rates went below the record high that they touched on trading during Tuesday, but are still within close proximity of gold prices.
Spot gold was recorded at $1,236.85 during the early hours of trading on Wednesday. The prices had touched rates of $1,241.86 during trading yesterday, which is the highest for the precious metal ever since October 26. The 5 week high was achieved yesterday.
United States gold futures went down by some 0.4 percent to reach levels of $1,241.4 per ounce. Palladium, which was on a high this week, fell by some 0.1 percent to trade at $1,231.9 per ounce. Prices for Palladium had reached $1,239.5 in the open market on Tuesday, as it briefly surpassed the rates for gold. The price of Palladium is believed to have had increased because of tight supplies for the autocatalyst metal.
The Federal Reserve for the United States hinted towards another rate hike in interest rates for the region by next year. An influential policymaker from the Fed mentioned the possibility of an increase in interest rates, as the dollar was doing well
Donald Trump also spoke about extending the 90-day truce between China and the United States, but only if China complied with the points of the ceasefire.
“Gold at this point will correct a little more. $1,242.5 is the level gold has to test before it goes up to the next level. The downside we are looking at is $1,230” GoldSilver Central’s Lan mentioned recently.
In a socio political update, members of the U.S senate have mentioned that they are certain of the involvement of Saudi Arabia’s crown prince Muhammad bin Salman in the murder of journalist Jamal Khashoggi. The Senate was briefed by the CIA in this matter.
Australia Seeing Mineral Exploration Boom
In other gold news from the globe, Australia is seeing a boom in the mineral exploration sector, with the spending in this regard hitting a 5-year high.
The expenditure for mineral exploration is up by over 25 percent in the country, as Western Australia is witnessing a boom. The third quarter alone saw a 3.6 percent rise in the exploration budget for the country. The quarter saw an expenditure of $561.4 million in this regard, marking the highest level of expenditure for mineral exploration within 5 years.
The investment in gold mining has paid dividends, as gold production is at record levels. “If gold output is maintained at current levels in the December quarter, output for the full calendar year 2018 will remain at a near-record level,” a recent study mentioned.
“The Australia gold mining sector is very healthy; we have strong margins and low to no levels of debt in the sector. There’s plenty of exploration upside, which can deliver some additional discovery and volume growth over the next few years,” said Director of Global Mining and Research at RBC, Paul Hissey.