Gold & Silver edge higher as attention back on Fed
New York (July 25) Gold was edging higher in light trading as the week drew to a close, with attention focused on the US interest rate meeting next week.
After the mixed response by markets to the recent testimony by Fed chair Janet Yellen, everything that said in the press conference afterwards will be even more closely scrutinised.
Recent data from the US has been strong and with company earnings of some corporate heavyweights coming in better than forecast, the spot gold price has been under pressure again.
Recent figures from China showing weak physical demand have also been pushing down on the spot price and consumer demand was expected to be one of the props for the price in 2014.
This has outweighed the continuing problems in Ukraine and Gaza, while the situation in Iraq has barely registered in recent weeks.
Even so, holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose for a second straight day. Holdings in the ETF, the largest of the gold-backed funds, are now around 805 tonnes.
Ahead of the markets’ opening on Wall Street, spot gold was US$2 higher at US$1,295 and heading for a fall of about 1.5% since the start of the week.
Gold has risen by around 7.5% since the start of the year.
Silver today was a shade higher at US$20.44, while platinum rose US$5 to US$1,469.
There was good news from two of precious metal sector heavyweights today with Anglo American and African Barrick Gold both receiving plaudits for their latest results.
ABG raised gold production rise to 178,206 ounces in its second quarter up 8% year on year. Sustainable costs fell again to $1,105/oz or down 21% with a target in the future of US$1,100-1,175/oz.
Anglo American ‘s chief executive Mark Cutifani ,meanwhile, promised to get rid of more of the mining giant’s underperformers as he revealed operating profits fell 10% to US$2.9bn in its first half.
Lower commodity prices cost it US$1bn and the five month platinum strike in South Africa cost Anglo a further US$385mln.