The gold price climbed toward $1,600 per ounce Sunday night as worries over the surge in borrowing costs for Italy drove investors to add to long positions in the yellow metal. Gold prices, which have risen for ten consecutive days, advanced amid a flare-up of the European sovereign debt crisis. Italian ten-year bond yields crossed 6% last week and traded to record spreads against similar duration German bunds. The lack of deal over the weekend to raise the debt ceiling also helped bolster gold prices late Sunday.
HSBC gold analyst James Steele provided a bullish forecast for the gold price in a note to clients, stating:
“The climate driving gold higher is similar to that of Q2 2010 when gold also jumped to then record highs, buoyed by the emergence of the Greek sovereign crisis and U.S. quantitative easing. Gold is reacting to a similarly bullish cocktail of factors, except that as policy makers appear to have more limited options now, conditions are more gold-bullish now than in 2010.”
Platinum Group Metals Expands Board of Directors
- Platinum Group Metals is in progress at the WBJV Project 1 with a $ 100 million investment for underground access, as part of a planned $ 443 million, 275,000 ounce per year platinum mine in South Africa.
- Project finance discussions with a large number of banks are advancing and a formal mining right application has been properly filed with the Department of Mineral Resources of South Africa.
- Timothy Marlow is a graduate of the Camborne School of Mines and is registered as a C.Eng, Registered Charter Engineer in the UK.
