Deep Drilling Uncovers Eight Gold Veins Stretching Hundreds of Meters

In a February 12 article, a Metals Staff Writer reported that gold had dropped below the US$5000 per ounce level after new US economic data suggested interest rates could remain elevated. The report stated that spot prices fell “as much as 4% to US$4,880 per ounce, before recovering some losses,” and that silver experienced a “near 10% decline.” The article referenced rising geopolitical risks and what it described as expectations for continued higher interest rates. It added that some investors took profits to cover losses in other asset classes, quoting Nicky Shiels, head of metals strategy at MKS PAMP SA, who said the movement “feels like a ‘risk-out’ move.”

Shiels added that in times of market stress, “haven assets like gold will also be sold by investors in dire need of liquidity.” The report also cited market analyst Fawad Razaqzada, who said that volatility had caused stop levels to trigger, resulting in “a cascading-like effect.” The article further quoted Peter Grant, vice president and senior metals strategist at Zaner Metals, who said upcoming inflation readings “may revive some rate cut bets, and that would probably be favourable for gold.”

A February 12 report from Leede Financial discussed gold demand trends in China, stating that demand “remains strong,” supported by futures trading, exchange-traded product interest, and what the report described as seasonal Lunar New Year buying. Leede Financial wrote that Chinese gold bar premiums were “back around recent highs, around US$35/oz in early February.” The report also noted that “billions of inflows into Asia-listed gold ETPs were led by China,” and that the region had seen what the firm described as an “investorization” of gold markets. According to the report, Chinese uptake had been supported by economic concerns, gold’s appeal as a diversifier, global uncertainty, and official sector buying.

According to a February 13 report from Stockhead, gold miners were entering the early stages of the half-year financial reporting season and were beginning to show the effects of what the article described as an all-time gold boom. The report stated that gold was “now paying US$4979/oz,” while silver traded at “US$76.50/oz.” The article also noted that fund managers remained positive, quoting Franklin Equity Group portfolio manager Steve Land, who said, “Despite the record declines, we still see fundamental support for elevated gold prices given constrained supply and growing demand.”

Land stated that the gap between miner valuations and the gold price reflected “investor perception rather than fundamentals,” and added that “the industry has changed,” pointing to what he described as stronger balance sheets, better capital discipline, and higher shareholder returns. He also said miners offered “real operational leverage” and that the case for miners “looks well supported.” According to the report, revenues across the sector were projected to rise 55% year over year and 20% quarter over quarter for the fourth quarter, with costs up less than 10%. The article also stated that Land estimated valuations had been trailing spot gold by 20%.

Stockhead wrote that some analysts believed bullion prices would need to fall under US$3,500 per ounce to prompt what the article described as a down cycle for the sector. The report also referenced what it described as record half-year profit and dividend announcements from major gold producers. It further noted operational details such as production costs, earnings, and dividend decisions across several companies in the industry.