Global Precious MMI: Gold price surges to nearly nine-year high

The Global Precious Monthly Metals Index (MMI) gained 1.7% for this month’s reading.

Gold prices surge to nine-year high

Amid ongoing market uncertainty, gold prices have benefited.
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The safe-haven asset has seen its price rise to a nearly nine-year high, closing at $1,810/ounce on Wednesday, its highest since September 2011.
Meanwhile, the U.S. dollar, which is typically inversely correlated with gold prices, has lost some steam, falling to 96.45 on Wednesday.

Platinum-palladium spread widens slightly

Meanwhile, the spread between platinum and palladium grew this past month, with palladium rising to $1,873/ounce and platinum at $819/ounce.
The palladium price rose from $1,860 at the start of June while platinum ticked down from $822/ounce.
However, it’s been a downward few months for palladium, which has seen its price take a tumble amid declining automotive demand.
From March 1 to July 1, the palladium price has declined 25%. However, with automotive demand showing tentative signs of a recovery in the U.S. — in addition to two straight months of year-over-year sales increases in China — the palladium price could get a boost.

Barrick sells shares in Shandong

Barrick Gold Corporation reported last month it had sold 79,268,800 shares of Shandong Gold Mining Co., Ltd., good for a gross proceeds of approximately $210 million.
According to the Barrick release, the firm bought the shares in Q4 2018 at HK $10.50 and sold the shares at HK $20.50.
“Barrick continues to hold 10,250,000 shares of Shandong Gold, representing a 2.05% interest in Shandong Gold’s Hong-Kong listed (H-class) shares, re-affirming its commitment to the strong existing long-term strategic partnership between the two companies,” the firm said.

Anglo Platinum updates on ACP repair

Anglo Platinum Group reported a leak early last month at its Anglo Converter Plant (ACP) Phase B unit, necessitating evacuation of the facility.
“The Company took the decision to temporarily close the ACP Phase B unit to secure a safe operating environment, protect employees and protect the integrity of the plant,” Anglo said in a release.
“The detailed technical investigation into the cause of the water leak shows localised damage to a single cooler tube that is now being replaced and confirms that this leak is unconnected to the repair work recently completed on the ACP Phase B unit. Other maintenance is being carried out and additional controls put in place whilst the ACP Phase B unit is off-line in order to provide greater operational stability. The repair work is expected to be completed next week, and recommissioning will then start once a detailed risk-based assurance process has confirmed it is safe to do so.”
However, the firm said the repairs would not impact previous PGM output guidance.

“The stoppage of the ACP Phase B for repairs of this water leak is not expected to have any impact on full year refined production guidance, which remains at between 3.1 – 3.6 million PGM ounces,” Anglo said.

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Actual metals prices and trends

The U.S. silver price rose 2.0% month over month to $18.20/ounce as of July 1.
U.S. platinum fell 0.4% to $819/ounce. U.S. palladium bars rose 0.7% to $1,873/ounce.
Chinese gold bullion rose 2.2% to $56.56/gram. The U.S. gold bullion price rose 3.0% to $1,780.10/ounce.

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