On Friday, U.S. stocks ascended, extending gains in the final hour of trading to end a five-day slide, as energy shares rallied with the price of oil, overwhelming the effects from Switzerland abandoning the franc’s cap. The dollar rose with copper and gold.
In Gold Sector, Allied Nevada Gold Corp.(NYSEMKT:ANV), Gold Resource Corporation (NYSEMKT:GORO), Comstock Mining, Inc.(NYSEMKT:LODE), Newmont Mining Corp(NYSE:NEM), were among the sharp gainers of Friday’s trading session.
Gold held close to a four-month high on Monday as uncertainty in global markets pushed investors towards the safe-haven metal, with holdings in the top bullion fund recording their biggest jump in nearly five years.
A market disorder after Switzerland unexpectedly abandoned a cap on the franc last week triggered strong bids for gold, often seen as an alternative investment to risky assets.
Monday brought the spot price of the yellow metal 0.81 percent higher, as the price of Brent crude oil sank to $47.45 per barrel. Although gold prices usually decline with oil, a prolonged decline in oil prices improves the ‘safe haven’ appeal of gold because of the deflationary economic consequences, which are beginning to occur.
Asian share markets were looking to edge higher on Monday, though concerned investors were wary of being dissatisfied yet again by economic news from China and policy stimulus in the euro zone.
On the other hand, RoxGold Inc. (ROG) said it is confident that it can develop its Yaramoko Gold Project in Burkina Faso, West Africa, after delivering a feasibility study in April 2014. The company, at this time advancing Yaramoko’s 55 Zone through permitting in hopes of being in production by early 2016, a company official said Sunday.
However, in late December, Roxgold said the accessibility of financing for the project is still subject to a number of conditions, including the receipt of a mining decree for the formerly approved mining permit at Yaramoko.
