High-Grade Hits Continue as Major Red Lake Drill Program Advances Across Multiple Veins

Kitco News reported on February 16 that gold prices had traded in a narrow range during quiet holiday conditions, noting that “gold prices have been unable to hold gains above US$5,000 an ounce in relatively quiet trading.” The report stated that spot gold last traded at US$4,978.1 per ounce, down 1.25% on the day, as several major markets were closed for holidays. According to Kitco, analysts had indicated that trading activity remained subdued, with Elior Manier of OANDA stating that “gold prices remain well supported around US$5,000 an ounce as geopolitical uncertainty remains elevated.”

Kitco also cited Daniel Hynes, Senior Commodity Strategist at ANZ, who stated that “the long-term story for gold also remains positive,” adding that “geopolitical and economic uncertainties will likely persist,” and that such conditions had supported demand for real assets. The publication noted that silver prices had also traded quietly, with spot silver last at US$75.96 per ounce, down 1.75% on the day.

Stewart Thomson wrote on February 17 that gold had been trading within a defined range, stating that “a range trade between US$4400 and US$5600 is forming.” He also wrote that gold had “burst above that channel and appears to be consolidating the breakout now,” while noting that price softness during the Chinese Spring Festival period had historically occurred. Thomson described broader demand dynamics, stating that he had “described an emerging ‘gold bull era’ that is focused on the economic rise of China and India.”

Richard Mills wrote on February 18 that gold had experienced volatility following macroeconomic developments, noting that the metal had dropped 9.5% on January 30 after reaching a record peak of US$5,594 per ounce. He also cited central bank demand trends, stating that the People’s Bank of China had increased its gold reserves to 2,308 tonnes, marking “the 15th consecutive month of gold reserve accumulation.” Mills further referenced global central bank buying, noting that the World Gold Council had reported net purchases totaling 52 tonnes through November, with year-to-date figures reaching 297 tonnes.

Mills also cited commentary from analysts at UBS, who stated that “a further decline in real U.S. rates will help support investor demand for gold exchange-traded funds,” while noting that central banks had been expected to continue adding to reserves. He further referenced ETF demand trends reported by The Kobeissi Letter, which stated that global gold ETFs had recorded US$19 billion in inflows in January, and that “retail is going all-in on gold and silver.”