The price of gold has steadied down on Wednesday, as recent comments by the United States Federal Reserve Board have helped boost the dollar. Spot gold for Wednesday maintained its tight range at $1,214.71, according to latest news. The prices on Wednesday morning are still rallying from the aftermath of what happened on Tuesday, when prices fell to their lowest point since 15th November, 2018 and reached levels of $1,211.36 per ounce.
Tuesday, 27th November saw plenty of surprises for gold prices, as the day started with positive trading, but catapulted down later. The prices for both spot gold and gold futures suffered as a result of this loss.
However, prices have remained on hold as of yet on Wednesday, with the futures at $1,214 per ounce and spot gold at $1,211.3 per ounce.
While gold prices for Wednesday have remained in range, the dollar got a boost today because of a statement by a senior Fed official yesterday. A senior Fed official yesterday reaffirmed that the country needed further rate increases down the line.
US President Donald Trump didn’t take the statement from the Fed representative too well and voiced his criticism at the Fed Chairman Jerome Powell, saying that he and the Feds were damaging the United States through all these increases in rates.
The President is also expected to meet Xi Jinping, his counterpart from China, over the weekend in Argentina. The meeting between the two leaders and the discussions pertaining to the trade wars will ultimately define the rates for gold and the dollar.
Gold Exploration Budgets Are Up 20% In 2018
Despite lackluster prices, the budgets for gold exploration across the world are on the rise this year. The mining industry saw an increase of 20 percent, with governments and countries realizing the importance of gold mining.
The report, which was focused on all metals, mentioned that gold has been performing way better than all other precious metals. It also accounts for 50 percent of these total exploration costs.
“The global nonferrous exploration budget increased 19% year on year to $10.1 billion,” said the S&P Global. “Although gold prices have been fairly unremarkable since 2017, generally trading within a $100/oz band, gold has continued to benefit the most from the industry recovery.”
“Improved metals prices and margins since 2016 have encouraged producers to expand their organic efforts the past two years,” said Mark Ferguson, who is the associate director of Metals and Mining Research at SPGMI. “Over the same period, equity market support for the junior explorers has improved, leading to an uptick in the number and size of completed financings. This allowed the group to increase exploration budgets by 35% in 2018.”
The report also found out that the top 3 countries leading nonferrous explorations for gold were Canada, United States and Australia. United States had the biggest share among these top 3 countries, as it accounted for 55 percent of the total exploration seen within these countries during the year.