Gold Digger: UK judge shuts down Venezuelan attempt to access gold reserves
Venezuelan President Nicolas Maduro might be a tad bit miffed after a British judge refused to hand control over of more than $US1bn ($1.45bn) in gold stored in London.
The court said giving Maduro control over the gold was unlawful as the UK recognised opposition leader Juan Guaido as the Latin American nation’s rightful leader.
Incidentally, this is the same view taken by the Australian government.
Maduro’s government is looking to sell Venezuela’s gold reserves to purchase the food and medical equipment it needs to battle the COVID-19 pandemic, while claiming that only it can ensure distribution of humanitarian relief and medical supplies.
>>Scroll down for the top small cap movers over the past week>>>
Adding just a little salt to the court decision wound, gold futures cracked the $US1,800 ($2,600) an ounce mark briefly in the middle of the week while spot prices are also making their way up.
Stockhead’s quick survey of analysts found strong support for further gold price appreciation, a forecast that has been supported by a Kitco News poll finding that 70 per cent of Wall Street professionals also see prices rising further.
Phoenix Futures and Options president Kevin Grady says that there is a clear floor in the market and investors are buying the dip.
Even reports that 4.8 million jobs were created in the US during the month of June failed to dampen enthusiasm for the precious metal.
Here’s how ASX gold stocks performed for the period June 26 – July 3 [intraday]:
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop:
Shares in Krakatoa Resources (ASX:KTA) soared on the back of last week’s reveal that it had unearthed results for historical shallow rotary air blast holes drilled north of the previously-producing Quartz Ridge mine near Bathurst, New South Wales.
The company noted that the results of up to 10m at 1.64 grams per tonne (g/t) gold were not tested by any subsequent exploration.
Krakatoa says Quartz Ridge comprises a line of historical workings with elevated prospectivity extending over 1.6km in length.
The company has now applied for approval to carry out a diamond drill program at the Turon project, which hosts the mine.
Shares in Castle Minerals (ASX:CDT) climbed after it recorded anomalous gold values of up to 88.9g/t during a reconnaissance sampling and mapping program ahead of maiden drilling at its Wanganui project near Meekatharra.
The Wanganui project presents an opportunity to extend shallow, open-pit mined oxide mineralisation down-plunge into fresh rock and to identify new deposits along strike, Castle says.
Fresh mineralised quartz vein material collected at the Main Lode South Pit returned gold mineralisation, confirming expectations the mineralisation will continue down-plunge.