The gold rate today of both 99.5 percent and 99.9 percent variants rose by Rs. 230 ($3.27) to Rs. 32080 and Rs. 32,230 per 10 grams.
This was the second consecutive day in a row for gold prices to rise this sharply, powered by increased global rates and demand. Silver prices also surged by Rs. 250 to Rs. 38,000 per kilograms. Meanwhile Sovereign gold maintained its value at Rs 25,000 per 8 grams.
Spot gold also rose in price by 0.1% to $1,260.92 per 28 grams as investors begin to offload dependence on what they now see as more risky assets. In general, this week’s gold prices almost touched an increase of 2%. With President Donald Trump threatening to shut down the government and concerns about the US Federal Reserve’s dovish outlook on interest rates, things are looking on the upside for the precious metals market.
Appetite for gold, which is widely considered as a safe haven by investors, is on the rise. This will remain the case in the foreseeable future as equity markets remain volatile amid increasing interest rates. Also supporting gold prices are the weakening US dollar rates, sending a ripple across global markets.
New Ventures, Mergers and Explorations
There is also a marked increase in gold exploration in the past couple of days, with Canada’s Corvus Gold closing its $1.6 million deal with AngloGold Ashanti to expand their Bullfrog District Exploration Program. The new funds will allow Corvus to expand their Mother Lode exploration program.
Corvus currently owns 100% of the North Bullfrog Project, which spans across 86.6 square kilometers in the south of Nevada. The new project has state of the art infrastructure, and has the advantage of being near a major highway, allowing it to be connected to major parts of the city making trade easier.
Corvus’s total land ownership now spans across 123.1 square kilometers, including their new Nevada gold discoveries. The total market capitalization for the Canadian based company is worth over a $288.4 million.
Positive reports are also coming in from Gold Road Resources Ltd, finding more gold deposits at Gilmour in Australia. This comes at a time when Australian gold production levels are reaching new highs. At the end of September 30, Australian gold production was valued at 81 tones. The current output levels will put gold production in Australia to 300 tones, valued at 11.2 billion.
Australia’s largest gold production company is Newcrest Mining, which produced well over 210,000 ounces of gold. Also good news for the country is the recent discovery of a rock that weighs over 90 kilograms. It is said to contain over 1000 ounces of gold. Similar rocks can be mined 500 meters underground, requiring further explorations.
Investors might have until December to diversify their portfolios by purchasing more gold assets. Gold prices are only going to climb higher. Other factors that will contribute to its growth is new found demand in India due to the “Buy Gold for 1 Rupee” market phenomenon and the Dubai Shopping Festival 2019.