2 weeks Ago By ADELLA HARDING Elko Daily Correspondent
Gold’s luster sparkled even more on Tuesday, with a record New York spot price closing at $2,774.60 per ounce, up $32.80, as hot spots in the world grew more heated and the U.
S. presidential election neared. Investors look to gold in uncertain times.
The Comex futures price was at $2,785.40 per ounce, up $31.10, in late afternoon trading, reaching closer to the $2,800 mark, after the price began to surge in early March.
In total, gold's price is up about 33% since New Year’s Day 2024, according to CBS News. The spot silver price was at $34.52 on Tuesday, up 77 cents.
“I think it’s got room to go up. When you see the conflicts around the world ..
. people tend to gravitate toward gold and silver,” said Darcy Marud, chief executive officer of Western Exploration, which has an exploration project 80 miles north of Elko. Marud cited the Middle East crisis, North Korean troops in Russia to fight in Ukraine and the election cycle.
Vice President Kamala Harris is in a close race with Republican former President Donald Trump for president, with election day just a week away on Tuesday. “All of those things are favorable for gold prices,” he said in a phone interview Tuesday, but he cautioned that prices may need to settle after a high-price run. Investors looking at gold can buy gold bars or coins, buy gold through exchange-traded funds, or they can purchase shares in gold producers.
CBS News wrote gold mining stocks can be more volatile because of production levels, operational risks and management, but “investing in gold stocks could be a smart decision given today’s unusual gold market.” Shares of companies with gold production in Nevada were mixed. One of the two companies that form Nevada Gold Mines — Barrick Gold Corp.
— saw its shares close at $20.28, up 30 cents, on Tuesday, while shares of the other joint venture partner — Newmont Corp. — were down 54 cents, with shares closing at $47.
82. Newmont’s shares suffered after the company’s third-quarter earnings last week fell short of what analysts expected because of high costs, although the company’s adjusted net earnings totaled $936 million, or 81 cents per share. Bloomberg reported analysts had high hopes for the industry because of high gold prices.
Newmont’s president and chief executive officer, Tom Palmer, said in the earnings webcast that the company was affected by the continuing impact of inflation, especially labor costs, including the cost of flying workers to and from remote operations in Australia. Shares of another company with gold mines in Nevada, Kinross Gold Corp., saw its shares go up 26 cents to $10.
70 at the end of Tuesday trading, while SSR Mining Corp. shares were at $6.39, up 45 cents and Coeur Mining Inc.
shares were at $6.97, up 23 cents. Orla Mining, which has the South Railroad Project in Elko County, saw its shares close at $4.
93, down a half-cent. Marud said company profits during times of high gold prices can also be impacted by lower ore grades. Producers mine lower grades when the gold price is up, but that means costs are up, too.
Instead of shares or in addition to company shares, investors looking for a safe place for their money also buy gold bars and coins and they can even buy gold through Costco now. However, CBS News wrote that “owning gold bullion has its own set of challenges, such as storage and insurance costs.” The presidential election is a key factor in the minds of analysts.
Kitco’s Jim Wycoff wrote on Tuesday that “an important U.S. jobs report on Friday and then next week’s U.
S. elections have the marketplace pensive at present. That trepidation is supporting buying interest in the safe-haven gold and silver markets.
” Ole Hansen, head of Commodity Strategy at Saxo Bank, told Neils Christensen of Kitco U.S. political uncertainty is the driving force behind the new safe-haven demand across commodities markets.
“Given the lack of response to the Middle East de-escalation seen in crude oil prices — which slumped the most in two years on Monday — we conclude that the latest strength is increasingly being seen as a hedge against a potential 'Red Sweep' at the November 5 U.S. election, where one political party, in this case, the Republicans, controls both the White House and Congress,” Hansen said in a note.
“This scenario raises concerns about excessive government spending, pushing the debt-to-GDP (gross domestic product) ratio higher while fueling inflation fears through tariffs on imports, as well as geopolitical risks. Investors are turning to precious metals as protection, even as expectations for lower rates and easier financial conditions fade, as the FOMC (Federal Open Market Committee) may end up being forced to pause the current rate-cutting phase,” he wrote. At the same time, some analysts have noted that a Democratic sweep next week could also increase government spending and push debt levels even higher, according to Hansen.
"Gold prices have benefited from robust safe-haven demand amid persistent geopolitical tensions, expectations of monetary policy easing, and mounting uncertainty surrounding the U.S. presidential election," Tito Iakopa, commercial director at FlowCommunity, said in market commentary cited by MarketWatch.
"These fundamental factors, combined with strong physical demand, continue to provide support for gold as elevated global risks push prices higher." Get the latest local business news delivered FREE to your inbox weekly..
