Gold prices weakened earlier this week as a result of China reducing growth estimates to an eight-year low of 7.5 percent. On a relative basis, the current price of gold represents a 1.2 percent total decline from last week.
Gold prices rallied on Tuesday following the announcement that a debt deal had been reached with Greece. New York gold hit a high of $1,759.95 on Tuesday trading.
The Bank of England preserving its official Bank Rate paid on reserves at 0.5 percent helped the spot market price of gold to climb to $1747.50 per troy ounce. Gold prices were further supported by the Bank's vote to inject another 50 billion pounds into its financial system along with news of Greek leaders finally negotiating a deal on fiscal reforms.
Gold spot price has climbed nearly 12 percent so far in 2012, supported by positive economic data and monetary policy guidance in the US.
Following Wednesday's announcement by the Federal Reserve that interest rates would likely stay near zero in the coming two years, the price of gold surge to its highest price in four months.
Strong supply and demand fundamentals give long-term bullish gold outlook.
Jaguar Mining said on Wednesday it has signed confidentiality agreements with several parties announcing it was engaging in a strategic review process to “explore alternatives”.
Chalice Gold has agreed to sell its 60 percent interest the Zara gold project in Eritrea to China SFECO Group for $100-million. The sale will enable Chalice to pursue other mining opportunities in Eritrea and around the world.
Junior mining and exploration companies can offer investors increased exposure to gold price appreciation. Share prices for junior miners can be leveraged to gold price increases, an initial discovery, or the significant achievement of commercial production.
Canada withdrawing from the Kyoto Protocol on the basis of supporting economic importance over environmental interest may be a strong investment opportunity for investors interested in junior gold exploration and development companies.
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