Gold rose slightly this week on optimistic news from Japan and China, but has traded in a narrow range leading up to the US election next week.
Gold prices have been on a bumpy ride this week, reacting to rising fears of deflation and prolonged economic slowdown concerns.
While experts have lowered their gold price forecasts for 2012, new estimates are still above current gold prices. Demand in India is expected to rise in the second half of 2012 compared to the first half, and more certainty in the economic picture could, in an inversion of the usual trend, boost gold prices.
Rye Patch Gold has won a legal claim to explore gold in Nevada, announced a discovery and encouraging Phase I drilling result from an exploration program, all within the past six weeks. While its share price has risen dramatically — soaring more than 80 percent on Dec. 5 – it seems that investors’ enthusiasm has dropped off a bit.
Newmont Mining Corp said on January 5 it would pay more than $2 billion in taxes over the life of its proposed Conga mine inPeru after violent protests by residents and local politicians in the Cajamarca region — where the operation is located — since November. The protestors claim the Colorado gold miner’s activities will taint their water and affect a major aquifer.
Centerra Gold sees continued pressure from wage inflation and higher oil prices in 2012. VP of Investor Relations John Pearson said they are trying to cut costs and increase efficiency.
Nordic Mines plans to reach full production at its Laiva mine in Finland before 2011 ends. Laiva has some of the largest gold reserves in the Nordics.
With gold prices hitting a record as a crisis drives investors into commodities, illegal mining has risen in the rainforests of South America.