Gold price falls as Trump calls off $US2 trillion stimulus talks
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The gold price sank below $US1,900 per ounce ($2,673/oz) overnight after US President Donald Trump rejected calls from the US Congress to approve $US2.4 trillion of stimulus spending for the ailing US economy.
Gold prices steadied Wednesday to trade at $US1,878/oz ($2,642/oz), as did silver at $US23.37/oz ($32.87/oz), while key US stock market indexes like the Nasdaq also fell Tuesday.
President Trump postponed further talks with Congress over the mammoth spending package until after the November 3 presidential election.
“I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major stimulus bill that focuses on hardworking Americans and small business,” the President said on Twitter.
Trump had offered to sign into law a stimulus package worth $US1.6 trillion.
The US dollar rebounded on the news of the breakdown in talks, which added to gold’s woes.
“The dollar also heard what Trump said, and we saw a large jump in the US dollar, which is a big offset for gold,” TD Securities head of global strategy Bart Melek told Kitco News.
The US dollar index, a measure of the currency against a basket of others, edged higher Wednesday to 93.82, according to Market Watch.
Citibank analysts remain bullish on gold prices and believe the yellow metal can rise to $US2,200/oz in three months and to $US2,400/oz next year.
“We are bullish gold tactically in the short term and structurally over the medium term,” Citibank analysts reportedly told FX Street.
The Slate Dam, Trojan Resource and Clinker Hill projects are 50km east of Kalgoorlie and adjacent to Black Cat’s existing gold projects, increasing its gold inventory to 826,000oz.
“This acquisition accelerates Black Cat’s move towards a target of more than 1 million oz of resources,” managing director Gareth Solly said.
The deal with Black Cat Syndicate allows Aruma Resources to focus on its four other Australian gold projects, including Scotia South in the Norseman-Wiluna greenstone belt in WA.
Exploration drilling at the project in WA’s West Arunta region is targeting a shallow covered magnetic anomaly consistent with an Ernest Henry or Carrapateena-style gold-copper system.
“Aileron is a large scale gold-copper opportunity in a new region,” said Encounter managing director, Will Robinson.
Encounter Resources has a similar exploration tie-up with BHP (ASX:BHP) for its Elliott copper project in the Northern Territory.
Krakatoa Resources’ (ASX:KTA) share price rose after the company was granted an exploration licence for its Rand gold project in NSW’s Central Lachlan Fold Belt.
The company said its Rand project has mineralisation similar to De Grey Mining’s (ASX:DEG) Mallina project in WA, and captures the historical Bulgandra goldfield, host to several gold mines that produced gold at grades of up to 265 grams per tonne.
“We have immediately ordered a high-resolution magnetic survey to explore for Hemi-style signatures and develop a pipeline of drilling targets,” chairman Colin Locke said.