Mining and gold companies witnessed a significant decline this week, affected by the decline in gold prices and profit-taking operations, in addition to conflicting expectations about the future of the Federal Reserve’s monetary policy, according to the technical report of the Gold Billion gold trading platform, as the report revealed that the shares of Newmont Gold Mining Company, which is ranked first Global reserves of gold amounted to 96.1 million ounces in last December’s census, witnessed a decrease in trading on the New York Stock Exchange by 4%, to record the stock’s lowest level in 8 weeks.
On the weekly level, the company’s share is witnessing a decline of 6%, to record the fourth weekly decline in 5 weeks. The decline in gold levels in the markets this week came in light of the US economic data on inflation that was issued this week, which caused a decline in investments related to the gold market, such as the shares of companies operating in mining and gold. .
And the technical report of Gold Billion stated that concerns related to the US debt ceiling crisis are still keeping gold stable above the level of $ 2000 an ounce despite profit-taking operations this week, with the demand for safe haven in the markets remaining relatively high in light of the deteriorating economic outlook. Bullion prices formed a strong support level at $2,000 an ounce.
A meeting between US President Joe Biden and top lawmakers on the debt ceiling that was scheduled for Friday has been postponed, and the US federal government may run out of paying its bills as soon as June 1, 2023 unless the debt ceiling is raised according to warnings by Treasury Secretary Janet Yellen.
The International Monetary Fund has warned that the failure of the US government to pay its debts will have serious repercussions on the US economic conditions and on the global economy as a whole. American collapse severity will vary from state to state.
And with the issuance of a report on Bacoist Corp. indicating that the bank’s deposits decreased by 9.5% during the past week, the bank’s share witnessed a sharp decline since the bank is facing major problems recently that make it the next domino pieces that may fall in light of the American banking crisis that began last March with a bank fall. Silicon Valley and Signature Bank followed last week.
The Gold Billion report indicated that these fears in the financial markets are working to support gold in their trading and its stability at the psychological level of $ 2000 an ounce, which limited the losses of gold this week and reduced the intensity of selling operations to take profits, as the role of gold as a safe haven in the markets remains. The most important right now.
Gold prices are trading during the Friday session, down by 0.4%, to trade at the time of writing the report at the level of 2006.27 dollars an ounce, after it recorded the lowest level in a week at 2005.59 dollars an ounce.
Gold is on its way to record a weekly decline of 0.3% after losing all the gains it recorded before, to be the first weekly decline after two weeks of gains during which it recorded the highest level in the history of gold markets at $2080 an ounce.
Yesterday, producer price data for the United States was released, which is an indicator that measures inflation from the point of view of companies and producers, as the index witnessed an increase in April by 0.2%, compared to the previous low reading by -0.4%, and the core index rose by 0.2% from a previous reading. Previous flat rate of 0.0%.