Gold rallies as stock markets falter
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The gold bulls are charging again ahead of the US Federal Reserve meeting this week and a pullback of global stock markets after several weeks of gains.
Spot gold rose to $US1,713.3 an ounce after a brief stint below the $US1,700 mark.
The strengthening Australian dollar versus its US counterpart, which is due in part to the perception that our economy is recovering quickly, means that gold is worth about $2,468 an ounce locally.
All eyes are now on the US Federal Reserve, which is expected to emerge from its two-day meeting with some guidance on the road ahead.
However, analysts expect gold to remain volatile with RBC Wealth Management managing director George Gero telling Marketwatch that there are “many economic and political headlines to come” this week.
The World Bank has also forecast that global gross domestic product will contract 5.2 per cent this year, with a warning that the ongoing uncertainty could lead to further downgrades to the outlook.
Bellevue Gold’s (ASX:BGL) maiden regional drilling program has got off to an auspicious start with the first hole returning a 17m intersection grading 4.2 grams per tonne (g/t) gold from a depth of just 19m.
The intercept included two higher grade intervals of 3m at 9.7g/t gold from 19m and 3m at 11.6g/t gold from 33m.
Results above 5g/t gold are generally considered to be high grade.
Reverse circulation drilling has now been completed over 500m of strike at the Government Well prospect within the company’s namesake project with assays pending on three holes.
Further regional planning of 10,000m is planned and budgeted for the current calendar year.
Meanwhile, the final two holes in Tesoro Resources’ (ASX:TSO) recently completed diamond drill program at the El Zorro project in Chile have established southern extensions and additional gold-bearing fault zones at the Ternera deposit.
The top intercept is 18m at 1.36g/t gold from 92m including 4.6m at 4.99g/t gold.
All 11 holes intersected gold mineralisation, defining more than 750m of strike at Ternera.
Yandal Resources (ASX:YRL) expects to increase confidence in the updated mineral resource estimate that is due for release in the September quarter after infill drilling returned further gold intercepts.
Notable results include 8m at 3.76g/t gold from 27m, including 1m at 13.4g/t, and 11m at 3.35g/t from 50m, including 1m at 16.99g/t gold.
Yandal expects to start a diamond drill program in July to provide geotechnical, metallurgical and hydrogeological data for pit design and economic assessment of the deposit.