Following yesterday’s large sell-off in gold, the yellow metal is now at a “critical juncture,” according to Robin Bhar, a senior metals analyst at Credit Agricole.
In a note to clients on Tuesday, Bhar wrote that “Gold is at a critical juncture and its performance over the next few days could signal its next big move…The approach of year-end and the need for (U.S. dollars) to meet funding commitments in an already heightened environment of stresses in the inter-bank lending markets continues to see gold under pressure.”
If the need for dollars remains in place, it “could act to cap gold prices in the short-term as we witnessed last week, as rallies above $1,760/ounce were quickly capped,” Bhar added.
COMEX gold futures traded lower on Tuesday by $6.30, or 0.4%, at $1,661.90 per ounce as of 11:24am ET
Colossus Advances Serra Pelada Toward Production
- Surface infrastructure construction is continuing ahead of schedule, with a number of auxiliary buildings now complete
- An agreement to build a dedicated electrical transmission line has been reached
- Metallurgical test-work confirms Gravity Recoverable Gold (GRG) values of between 76% and 88%
- A PGM flotation program is ongoing to optimize the efficiency of the flow-sheet to extract platinum and palladium
