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Gold price recovers despite stronger dollar

Gold prices edged higher on Monday, recovering from a near seven-week low, as prospects of a massive US coronavirus relief aid outweighed a stronger dollar and lifted bullion’s appeal as an inflation hedge.

Spot gold advanced 0.6% to $1,838.30 per ounce by 11:30 a.m. EST, rebounding from an intraday low of $1,810.90 earlier. US gold futures were also 0.4% higher at $1,837.40 per ounce.

Meanwhile, European equities and US futures remain under pressure.

Gold investment demand remains well supported in 2021 – report

The covid-19 pandemic has raised uncertainty by compounding existing risks and creating new ones, but by the end of last year, investors were optimistic that the worst was over.

Looking ahead, investors will likely see the low interest rate environment as an opportunity to add risk assets in the hope that economic recovery is on the immediate horizon. That said, investors will likely also be navigating potential portfolio risks including ballooning budget deficits, inflationary pressures and market corrections amid already high equity valuations.

Gold price rally of 2020 crushes analyst forecasts

Gold had a monumental 2020 as bullion soared to multiple record highs throughout the year amid the economic uncertainties brought by the covid-19 pandemic, which helped to cap off its best annual performance in a decade.

During the past calendar year, gold prices traded at an average of $1,769.59/oz, well exceeding what most analysts were forecasting in mid-January.

According to the London Bullion Market Association’s (LBMA) annual precious metals forecast competition, analysts were forecasting the gold price to be $1,558.8/oz on average, an increase of 12% from the average price in 2019, but still short of the actual average price by over $200/oz.

Gold price heads for largest yearly gain in a decade

Gold prices are set for their biggest annual advance in a decade after a tumultuous year, with the economic impact brought by the coronavirus pandemic playing a key role in support of the haven metal.

Bullion hit a record high earlier in August as investors feared an unprecedented wave of stimulus by central banks and governments would lead to currency debasement and inflation. Holdings in gold-backed exchange-traded funds also set an all-time high in October.

Gold price higher as dollar hits multiyear low

Gold prices edged higher on Wednesday, as the prospect of increased fiscal aid pushed the US dollar to another multiyear low. However, the ongoing covid-19 vaccine rollouts and increased risk appetite limited bullion’s gains.

Spot gold advanced 0.4% to $1,885.05 per ounce by 11:35 a.m. EST, while US gold futures rose 0.3% to $1,889.30 per ounce in New York.

On Wednesday, the dollar index fell to its lowest since April 2018 following US Senate Majority Leader Mitch McConnell’s decision to delay a vote on increasing covid-19 relief checks to $2,000.

Equinox to buy Premier Gold in $480 million all-stock deal

Canada’s Equinox Gold (TSX, NYSE: EQX) is buying fellow miner Premier Gold Mines (TSX: PG), which will spin out its Nevada assets in a new US-focused gold miner to be called i-80 Gold Corp.

The all-stock deal valued at C$612 million ($480m) hands Equinox Gold Premier’s 50% interest in the Hardrock project in Ontario, the Mercedes Mine in Mexico and the Hasaga and Rahill-Bonanza properties in Red Lake, Ont.

Centerra Gold (TSX: CG) agreed on Tuesday to sell its 50% shareholding in the Hardrock project to Orion Mine Finance for $225-million plus contingencies of about $75-million.

Gold price rebounds with stimulus talks moving forward

Gold prices rebounded on Friday after US Treasury Secretary Steven Mnuchin said his agency and the Federal Reserve have “enough firepower” to continue to support the economy, boosting the metal’s appeal as a hedge against inflation.

The comments came a day after Mnuchin called for several emergency lending programs to expire by the end of the year. “Markets should be very comfortable that we have plenty of capacity left,” Mnuchin said Friday on CNBC.

Gold price to hit $2,300 next year on inflation risks, Goldman says

Gold prices are expected to break out of the current narrow trading range and soar through 2021 as the coronavirus recession gives way to higher inflation, analysts at Goldman Sachs say.

Bullion hovered around $1,900/oz over the past few weeks after its summer rally to record highs fizzled out. While uncertainty surrounding the US election fueled a brief rally, positive news of covid-19 vaccine trials have pushed investors out of safe havens and into riskier assets.

Gold price: ETF inflows continue for 11th straight month

Gold-backed ETFs and similar products recorded their 11th consecutive month of net inflows during October, matching the record number of positive monthly flows set in April 2006, according to the latest World Gold Council report.

Gold ETF holdings increased by 20.3 tonnes ($1.4 billion) in October as gold prices moved mostly sideways, finishing slightly below $1,900/oz at month-end.

Credit: World Gold Council

Gold ETFs have now added more than 1,000 tonnes in a year for the first time ever, surpassing the 2009 record of 646 tonnes.

Nordgold matches Shandong Gold’s offer for Cardinal in takeover battle

A long-running battle between Nordgold (LON: NORD) and China’s Shandong Gold over Cardinal Resources (ASX: CDV) took a fresh turn on Wednesday, after the Russian gold miner matched Shandong’ s latest bid of A$1 per share.

Both suitors have been locked in a back-and-forth contest for the Australian miner — which owns the 5.1 million-ounce Namdini gold project in Ghana — since Nordgold put forward a 45.7 Australian cents-a-share bid in March this year.