|Day's Range||1,671.70 - 1,723.20|
The recent price action in gold suggests the precious metal was overpriced given current economic and COVID-19 conditions.
(Bloomberg) -- Barrick Gold Corp. says a Papua New Guinea court has granted it the right to challenge a government decision denying its long-term mining rights in the South Pacific nation.A judicial review to determine whether the government followed due process in refusing to renew the mining license will take place on July 20, Barrick Chief Executive Officer Mark Bristow said Friday in a phone interview.The Toronto-based miner’s joint venture arm is prepared to keep negotiating with the government for a “win-win” agreement that “will provide materially enhanced benefits for all Papua New Guinea stakeholders,” he said.In April, the PNG government said it would not renew Barrick’s right to operate the Porgera gold mine, a decision Bristow said at the time was “tantamount to nationalization without due process.” The world’s second-largest gold producer had said its local joint-venture unit, Barrick Niugini, would pursue all legal options to defend its interests and recover damages.Regarding a news report on Friday that the country’s mining regulator is considering criminal proceedings over allegations of illegal exports, Bristow said the joint venture “categorically rejects any claim that it, or its representatives, have violated the law in any way.” The dispute involves gold that was produced by processing the remaining ore in its milling circuit after the mine was put on care and maintenance, he said.Separately, an application for “stay and interlocutory relief” will be heard on June 12, Bristow said. A favorable decision will allow the miner to continue to manage the mine while it’s on care and maintenance, he said.Barrick co-owns the mine with joint venture partner Zijin Mining Group Co. In an April filing with the Hong Kong exchange, Zijin also said if negotiations fail, the JV would pursue all legal avenues to protect its investment.Barrick’s share of the gold from Porgera accounted for about 5% of its global production of the metal in 2019. The miner has previously said that with proper investment Porgera has the potential to become a top global asset. In May, Barrick was forced to cut its 2020 production guidance by 200,000 ounces as a result of the stand-off.The decision to deny Barrick’s mining rights appears to be part of a broader move by Prime Minister James Marape to secure better deals from foreign companies involved in the country’s resource extraction. Despite multiple meetings with Marape, and an offer of more than half the mine’s economic benefits to PNG stakeholders for 20 years, Barrick was unable to secure an agreement, Bristow said in April.READ MORE: Exxon, Total Projects at Risk as PNG Blocks Barrick Mine PermitThe dispute echoes a multiyear saga in Tanzania over Barrick’s former subsidiary Acacia Mining Plc. In a deal concluded last year, the company agreed to pay the government $300 million and give it partial control of the local assets to settle a tax dispute and lift a ban on export of concentrates.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Coinbase Analytics vaults the massive crypto exchange into a crowded field of blockchain tracing companies all vying for millions of federal dollars.
Peer-to-peer bitcoin transactions are up in the developing world. This has everything to do with "QE Infinity" and could be an opening for stablecoins.
Inventories increases are accelerating
A few short-covering rallies aside, we believe August Comex gold is likely to trade into the $1621.90 to $1582.40 retracement zone over the near-term.
(Bloomberg) -- Gold posted the longest run of weekly losses since September as surprisingly better U.S. job numbers provided further signs the global economy is picking up faster than anticipated, curbing haven demand.A key gauge of payrolls rose by 2.5 million, trouncing forecasts for a sharp decline following a 20.7 million tumble the prior month. The jobless rate fell to 13.3% from 14.7%.“The U.S. unemployment rate has shocked everyone because the number was much lower than the market expectation,” Naeem Aslam, chief market analyst at Ava Trade, says in an emailed message. “This is a mind-blowing number and shows that the economy is improving.”After climbing to a seven-year high in April, bullion’s haven appeal has weakened as more economies reopen awash with stimulus following coronavirus lockdowns. Global equities are near the highest since early March amid optimism for a quick economic recovery. And holdings in gold-backed exchange-traded funds fell for the first time since April on Thursday, ending the longest run of inflows in more than a year.Gold futures for August delivery fell 2.6% to settle at $1,683 an ounce at 1:30 p.m. on the Comex in New York. Prices are down 3.9% this week, a third straight weekly drop, the longest losing streak since mid-September. Spot gold was 1.9% lower.A Bloomberg Intelligence index of senior gold miners also took a hit, falling 4.7% so far this week and heading for the worst such drop since March. The index was dragged lower in part by Agnico Eagle Mines Ltd.’s 13% decline in Toronto and Newmont Corp.’s 7.9% loss in New York.Still, U.S.-China tensions, risks around the global recovery and expectations of more stimulus may support prices. The European Central Bank announced a larger-than-expected boost to bond-buying on Thursday and investors are awaiting plans for the next round of U.S. stimulus.Even though gold prices may face a near-term correction, the metal may climb toward a record in the second half of this year as yields remain low and real rates stay negative, according to Metals Focus Director Nikos Kavalis.Some banks have raised forecasts on the metal. J.P. Morgan Asset Management changed its recommendation on gold and other precious metals to overweight, and Credit Suisse raised its price expectations, seeing the metal averaging as high as $1,800 an ounce in 2021, according to a Friday research note. Both banks see U.S. dollar weakness and inflationary pressures supporting prices.Holdings in gold ETFs are still near a record high, according to initial data compiled by Bloomberg. Assets fell by 2.1 tons to 3,129.2 tons as of Thursday, though they are up more than 20% so far this year.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Stock markets rallied significantly during the week, especially on Friday as the jobs numbers in the United States came out much better than anticipated.
Gold markets fell during the majority of the week and crashed through the $1700 level during the day on Friday after a positive jobs number.
July WTI crude oil is looking good ahead of the week-end, but still faces some headwinds before we’re likely to see a strong breakout to the upside.
Gold markets broke down below the 50 day EMA on Friday, as there was a major “risk on rally” in the marketplace.
The silver markets have formed an extremely negative looking candlestick for the week, and therefore it tells me that we are likely to pull back.
With OPEC looking likely to continue cutting, that is one of the main reasons that the oil markets have rallied again.
The natural gas markets drifted a little bit lower during the week, but also turned around to show signs of resiliency.
The natural gas markets initially tried to rally during the trading session on Friday again, but gave back the gains to form a less than impressive candlestick.
This was exacerbated by a better than anticipated jobs number in the United States. That is an area that is obviously psychological in nature and has been a significant support and resistance barrier.
The British pound has rallied significantly during the week and what can only be described as a parabolic break out.
The Euro has rallied rather significantly during the week but seems to be running into trouble near the 200 week EMA.
WTI oil gets closer to $40 per barrel as traders expect that OPEC+ will extend current production cuts by at least one month.
Today and next week the S&P; 500, market sentiment, volatility, Put/Call Ratio have created the perfect storm for blow-off top and reversal.