Gold prices retraced to $US2,024/oz ($2,829/oz) on Tuesday, down from last week’s record of $US2,075/oz, as some investors started cashing out their profits.

Market analysts said a comeback in the US dollar this week was checking gold prices.

“This is just a natural pullback in this uptrend, people are just taking profits because gold has had such a fast move upwards and the dollar has been up for the past two days,” US Global Investors head trader Michael Matousek told Reuters.

Metals trading website Kitco said in a report that recent US currency weakness had been supportive of precious metals prices.

“Both metals [gold and silver] have been reacting to the massive quantitative easing initiated by the Federal Reserve along with other central banks. This had the net effect of reducing the value of many core currencies including the US dollar,” Kitco said.

Renewed China-US tensions, including US president Donald Trump banning Chinese social media app TikTok, have also cushioned gold prices, analysts said.

Silver, meanwhile, is closing in on the $US30/oz level, trading at around $US29.25/oz.


Anglo Australian Resources hits visible gold

Meanwhile, the gold exploration frenzy continues with several ASX junior explorers releasing news to the market this morning.

Anglo Australian Resources (ASX:AAR) said drilling at its flagship Mandilla gold project 75km west of Kalgoorlie in WA confirmed the presence of down-plunge extensions of the Mandilla East mineralisation, with visible gold also present.

Best results from its drilling include 13.4m at 7 grams per tonne (g/t) gold from 180.4m, including 1.8m at 15.7g/t from 222m. Shares rose 5 per cent to 20c in early Tuesday trade.

“We are keenly awaiting assay results from the remaining holes in the program – with recently completed diamond holes intersecting albite/silica alteration, quartz veining and numerous occurrences of visible gold,” managing director Marc Ducler said.

AAR, MAN and MKG share price charts


Mandrake starts drilling, Mako hits very high-grade gold

Mandrake Resources (ASX:MAN) kicked off drilling at its Berinka Pine Creek gold project in Australia’s Northern Territory and is focused on strong gold anomalies from samples taken near the historic Terry’s prospect. MAN shares edged 2.7 per cent higher to 3.7c.

Previous drilling at the Terry’s prospect intersected gold mineralisation associated with sulphide-rich veins that included 4m at 6.6g/t from 32m. Exploration is also underway at its Jimperding project in WA.

Mako Gold (ASX:MKG) saw its share price jump 22.7 per cent to 14c as drilling results came through for its Tchaga gold prospect in Cote d’Ivoire, West Africa which is within 30km of Barrick Gold’s 4.9-million-ounce Tongon gold mine.

Highlights from an ongoing 10,000m drilling program at the Tchaga prospect, part of its Napie project, show a combination of 1m intercepts that include 102.5g/t gold, 60.5g/t gold, and 39.3g/t gold.

“We are very encouraged by our latest drilling tests that demonstrate thick and high-grade gold mineralisation within 50 vertical metres of surface and open in multiple directions,” managing director Peter Ledwidge said.

“This is consistent with our strategy to define significant shallow gold mineralisation within our 30km corridor,” he added.

Mako has the opportunity to increase its share in the Napie prospect to 75 per cent under a farm-in agreement with Perseus Mining (ASX:PRU) subsidiary Occidental Gold.