As gold prices surged to a seven-year high in January, net inflows into gold-backed exchange-traded funds rise to an all time high.
It’s been less than two months since the 2019 novel coronavirus (COVID19) was first reported in China, and a recurring question we hear from investors is: ‘How might gold react to an epidemic like this?
“Gold will continue to rise until the market is sure as to what extent the virus has damaged,” said Bob Haberkorn, senior market strategist at RJO Futures.
Canada’s Aton Resources (TSX-V: AAN) became the first company in more than a decade to secure a gold mining licence in Egypt, which last year issued new regulations to ease foreign investment in the sector.
The new rules eliminated the need for miners to form joint ventures with the Egyptian government and limits state royalties to a maximum 20%, measures long advocated by the private sector.
The company said the licence underscored the country’s new commitment to developing its exploration and mining sector.
Mexican Gold’s (TSXV: MEX) Queensway gold project in Canada’s Newfoundland province reported the most significant drill intersections of 2020 to date, according to intelligence company Opaxe, based on companies listed on the Toronto Stock Exchange.
Opaxe compiles the best drill intersections around the world and then ranks them based on gold equivalent grams per tonne using ruling metal and mineral prices.
The 92.86 g/t grade over 19 meters boosted MEX shares 25% higher on the TSX Venture Exchange the day after the announcement.