Zambia Gold Company Limited (ZGCL)

July 18 (Reuters) – Gold prices edged higher on Thursday, trading not too far away from a record high scaled in the previous session, as rising anticipation of a U.S. interest rate cut in September boosted demand. Spot gold rose 0.1% to $2,461.27 per ounce, as of 0218 GMT. Prices hit an all-time high of $2,483.60 on Wednesday. U.S. gold futures added 0.2% to $2,465.00. Decreasing rates and U.S. elections are two immediate factors likely to push gold beyond $2,500, as gold tends to benefit from economic and geopolitical uncertainty, said Ryan McIntyre, senior portfolio manager at Sprott Asset Management. "Holdings of gold in ETFs (exchange traded funds) appear to have bottomed in May and they are now starting to increase again... there could be a new wave of demand for gold coming through this channel particularly with financial advisors and institutions." Lower interest rates increases the appeal of non-yielding bullion. Fed Governor Christopher Waller and New York Fed President John Williams both noted the shortening horizon toward looser monetary policy. Separately, Richmond Fed President Thomas Barkin said he is "very encouraged" on broadening declines in inflation. Markets expect a 25 basis point reduction at the Federal Reserve's September meeting, according to CME's FedWatch Tool. U.S. economic activity expanded at a slight to modest pace from late May through early July, with firms expecting slower growth ahead, a Fed survey showed. "Over the next 6-12 months, regardless of who wins the (U.S.) election, we see gold rising to $2700-$3000 and silver to $38," Citi Research said. Investors may want to hedge their equity and currency exposures as potential global trade war looms, especially between the U.S. and China, which could boost precious metals, it added.

April 12 (Reuters) - Gold prices hit a record peak on Friday as investors rushed to safe-haven investments amid Middle East tensions and Chinese economic challenges. Spot gold XAU= was up 1% at $2,397.84 per ounce as of 9:29 a.m. ET (1329 GMT) after hitting a record high of $2,400.35. Prices were up nearly 3% for the week. U.S. gold futures GCcv1 gained 1.8% to $2,414.80. "The positive factors for gold outweigh the negative. The heightened tensions in Middle East is the main driver for gold's recent surge," said Chris Gaffney, president of world markets at EverBank. The United States expects an attack by Iran against Israel but one that would not be big enough to draw Washington into war, a U.S. official said on Thursday. "Gold continues to go from strength to strength as we are witnessing fear of missing out on clear display," Ole Hansen, head of commodity strategy at Saxo Bank, said in a note. "Fear of missing an ongoing rally creates a strong buy-on-dip mentality, in the process reducing the risk of recently established longs being challenged." Elsewhere, Thursday's U.S. Producer Price Index (PPI) came in softer than expected, a day after March's hot Consumer Price Index (CPI). "Gold has pushed back against some data that should have typically been negative. It will be somewhat healthy to see a correction in the bulls market, but the trend will continue to be positive," Gaffney added. Bullion also got a boost from data that showed China's exports contracted sharply in March while imports unexpectedly shrank. On the physical side, China's physical gold premiums rose this week, driven by strong demand to shore up a depreciating yuan while soaring prices dulled activity in India.

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Gold Price - Technical Analysis (21/03/2024)

March 21 (Reuters) - Gold prices climbed to a record high on Thursday as the U.S. dollar and bond yields ticked lower after the Federal Reserve maintained its projection of three rate cuts for this year. Spot gold XAU= was up 1% at $2,208.30 per ounce, as of 0725 GMT, after hitting an all-time high of $2,222.39 earlier in the session. U.S. gold futures GCcv1 jumped 2.3% to $2,211. Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies. The Fed held interest rates steady on Wednesday, but policymakers indicated they still expected to cut them by three quarters of a percentage point by end-2024. Fed Chair Powell said recent high inflation rate readings had not changed the underlying "story" of slowly easing U.S. price pressures. "It's the goldilocks scenario for gold prices, where marginally higher inflation expectations meet lower nominal rates to create decreased real yields," said Kyle Rodda, a financial market analyst at Capital.com. "A dovish Fed, a little squeeze on existing shorts, and a touch of momentum chasing have boosted bullishness in the gold market." Fed funds futures traders are now pricing in a 75% probability that the central bank will begin cutting rates in June, up from 59% on Tuesday, according to the CME Group's FedWatch Tool. "With Powell keeping three potential rate cuts in play this year, bond yields and the USD dipped, which opened a pathway higher for the gold price," Tim Waterer, chief market analyst at KCM Trade, said in a note. The dollar =USD slipped to a one-week low against rivals, while benchmark U.S. 10-year Treasury yields US10YT=RR also dipped.

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March 13 (Reuters) - Gold prices edged higher on Wednesday after dropping more than 1% in the previous session, as investors digested hotter-than-expected U.S. inflation data and still banked on a Federal Reserve interest rate cut in June. Spot gold XAU= edged up 0.3% to $2,163.12 per ounce, as of 1047 GMT. Bullion posted its worst single-day drop since Feb. 13 on Tuesday. U.S. gold futures GCcv1 rose 0.1% to $2,168.50. "The market driver behind the decline of gold is quite clear as the U.S. CPI numbers came in higher than expected," said Carlo Alberto De Casa, market analyst at Kinesis Money. "It's just a physiological correction after a long strike of positive days and markets are realizing that the Fed will not cut rates too quickly." Bullion slumped 1.1% on Tuesday as data indicated that U.S. consumer prices rose sharply in February, above expectations and indicating some inflation stickiness. Higher-than-expected inflation means that the US Fed will be under more pressure to keep interest rates higher for longer, weighing on non-yielding assets such as gold. However, Fed policymakers are still seen starting interest-rate cuts in June, even as a government report showed consumer prices rose last month more than expected. Traders now see about a 65% chance of a interest rate cut from the Fed in June, slight lower from the 72% seen before the data, according to the CME Group's FedWatch Tool. "While physical gold demand has been holding up well since 2021, a sharp price rally is likely to temper discretionary gold buying in 2024," analysts at ANZ Research wrote in a note. Focus now shifts to U.S. retail sales, producer price index, and weekly initial jobless claims print due on Thursday, which will provide a further update on the status of the US economy.

March 7 (Reuters) - Gold prices surged to a record high on Thursday, poised for their seventh consecutive daily rise, led by sluggish U.S. economic data and Federal Reserve Chair Jerome Powell's indications of potential rate cuts in the coming months should inflation alleviate. Spot gold XAU= rose 0.3% to $2,155.42 per ounce, as of 0723 GMT. U.S. gold futures GCcv1 added 0.2% to $2,163.10. Bullion continued its record-breaking rally, reaching an all-time high of $2,161.09 earlier in the session and looked set for its longest intra-day winning streak since at least November 2021. The marginal weakness in U.S. data gave gold a reason to rally, yet the magnitude of movement appears disproportionately large, possibly influenced by large futures buying that commenced on Friday, Marcus Garvey, head of commodities strategy team at Macquarie, said. Gold got a boost on Wednesday after Powell indicated that interest rate cuts were likely in the coming months "if the economy evolves broadly as expected," along with further evidence of falling inflation. Powell will speak again later in the day. Lower rates boost the appeal of non-yielding bullion. Powell's remarks, coupled with data released the same day indicating a softening of labour market conditions, resulted in U.S. Treasury yields and dollar sliding, increasing the appeal of gold. If Friday's labour market data or next week's inflation data shows any weakness, $2,300 would be the short term target based on technical levels, but that would be fairly a short lived phenomenon, before prices correct and consolidate, Macquarie's Garvey said. "We expect central bank buying to continue on the back of geo-political uncertainty. Slowdown in China will keep global growth contained. Hence, in an uncertain financial environment, gold will remain safe investment for banks," said Jigar Pandit, head of commodity and currency business at BNP Paribas' Sharekhan.

Gold hits record high on US rate-cut optimism!

March 5 (Reuters) - Gold prices clung to a three-month peak on Tuesday, supported by softer U.S. manufacturing and construction spending, while investors awaited Federal Reserve Chair Jerome Powell's testimony and key jobs data due this week. * Spot gold XAU= edged 0.1% lower to $2,112.39 per ounce, as of 0230 GMT, but hovered near Monday's levels of $2119.69, its highest since Dec. 4. U.S. gold futures GCcv1 fell 0.3% to $2,120.50. * London's gold price benchmark hit an all-time high of $2,098.05 per troy ounce at an afternoon auction on Monday, surpassing the previous record of $2,078.40 set on Dec. 28, the London Bullion Market Association (LBMA) said. * Market focus is on Fed Chair Powell's two-day congressional testimony on Wednesday and Thursday. * Other economic releases due this week that could move the needle on U.S. rate cut expectations include Institute for Supply Management (ISM) services data at 1500 GMT, and the Job Openings and Labor Turnover Survey (JOLTS) on Wednesday, and the non-farm payroll report on Friday. * Data last week showed U.S. manufacturing slumped further in February and inflation gradually easing, while consumer sentiment stood weak. * The Fed is under no urgent pressure to cut rates given a "prospering" economy and job market, Atlanta Fed President Raphael Bostic said on Monday in remarks that highlighted the risk inflation may get stuck above the central bank's 2% target or be sent even higher by "pent-up exuberance." * Traders now see a 65% chance for a June U.S. rate cut, according to LSEG's interest rate probability app. * Lower interest rates boost the appeal of non-yielding bullion.