Gold prices have risen sharply past the US$1,800 ($2,313) an ounce mark on bullish sentiment that was buoyed by a lower US dollar index and US Treasury bond yields backing off from this week’s highs.
Inflationary pressure has also been flagged as another cause of gold buying, with shipping giant Maersk warning there were not enough ships available globally to meet a surge in consumer demand.
Kitco.com quoted TD Securities head of commodity strategy Bark Melek as saying that while gold has moved solidly above a resistance work, more work was required to sustain the new momentum
“In this environment, we are never completely out of the woods, but we are setting up for a nice little rally as momentum picks up,” he added.
Independent market analyst Robin Bhar added the next major hurdle for gold will be for prices to push above their 200-day moving average of about US$1,868/oz.
Winners & Losers
Here’s how ASX-listed gold & silver stocks are performing:
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Notable gold small caps
With gold breaking past the US$1,800/oz mark, here are some notable announcements over the past week.
Everyone likes the big numbers when it comes to gold exploration and that is certainly the case for Great Boulder, which intersected bonanza grades in initial reverse circulation results at the Mulga Bill prospect within its Side Well project in Western Australia.
Highlights from the drilling are 1m at 136 grams per tonne (g/t) gold from 132m within a broader 6m intersection grading 31.2g/t gold from 130m and 3m at 34.5g/t gold from 32m.
Further assays from the 4,000m RC program are expected in the coming weeks.
The company kicked off underground mining at its Burbanks project just south of Coolgardie, Western Australia, under its Stage 1 trial mining targeting the Main Lode Initial Licence Area.
Stage 1 objectives are to understand the orebody behaviour and use of preferred mining methods to maximise mining performance over the longer term, as well as develop underground drilling platforms to enable exploration targeting areas down-dip and below historical mining areas.
Drilling at Alkane’s Boda project has confirmed the continuity of high-grade gold-copper breccia that it had previously intersected.
Notable results were 70m grading 3.04g/t gold and 0.92 per cent copper from 829m, within a thick intercept of 383.2m at 0.8g/t gold and 0.31 per cent copper from 775m.
Drilling to test extensions and adding definition to the identified mineralised systems is continuing at Boda and Boda Two.
The company is also mobilising an aircore rig and a high-capacity RC rig to support the ongoing diamond drilling program.
Meanwhile, Yandal’s drilling has returned the highest gold grades to date at the Gordons Dam gold prospect, which sits within the Gordons gold project in WA’s highly prospective Kalgoorlie-Boulder region.
Notable results included 19m at 2.86 g/t gold from 36m, including 1m at 38.07g/t gold from 37m, and a 2m zone grading 10.83g/t gold from 118m to end-of-hole, including 1m at 20.68g/t.
During the current quarter, the company plans to release the remaining assay results from the RC drilling; start diamond drilling to test for porphyry related mineralisation down dip of the Main Zone; receive and release remaining aircore results; commence follow-up RC testing at Malone and Gordons Dam South East; and release RC results from the Star of Gordons prospect.
The post Gold Digger: Prices are climbing, and these ASX explorers scored some big hits this week appeared first on Stockhead.
Barry Stroman was a reporter for Zerg Watch, before becoming the lead editor. Barry has previously worked for Wired, MacWorld, PCWorld, and VentureBeat covering countless stories concerning all things related to tech and science. Barry studied at NYU.