Gold lacks path to head higher, and Biden administration halts mine development in Alaska
Description
With Middle East conflict unwinding, a focus on the Fed could slow gold's momentum.
On Saturday mining audiences manager Michael McCrae recorded Kitco Roundtable.
For now, the Israel-Iran conflict seems to have tamped down, which removes some safe-haven demand for gold and puts renewed focus on the Federal Reserve’s monetary policy.
This week Federal Reserve Chair Jerome Powell surprised markets with a brief hawkish comment. While speaking at an event in Washington, D.C., Powell said that after the release of hotter-than-expected inflation data, the central bank has less confidence it is ready to cut interest rates. A June rate cut is basically off the table, and markets only see a 50/50 chance of a July rate cut.
In mining news the Biden Administration denied the building of an access road to Triology Metals' base metals project in central Alaska. The the Upper Kobuk Mineral Projects is a joint venture with South32 50/50. Triology dropped about 25% for the week.
United States
