Global Precious MMI: Gold price posts largest single-day loss in seven years

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The Global Precious Monthly Metals Index (MMI) fell 2.2% for this month’s index reading, even as the gold price surged in late October.

November 2020 Global Precious MMI chart

The MetalMiner 2021 Annual Outlook consolidates our 12-month view and provides buying organizations with a complete understanding of the fundamental factors driving prices and a detailed forecast that can be used when sourcing metals for 2021 — including expected average prices, support and resistance levels.

Gold price surges before significant drop

After hovering around $2,000 per ounce in August, the gold price took a step back over the ensuing months.

In late October as Election Day approached in the U.S., gold fell to $1,878 per ounce to close the month. The price rose as high as $1,960 per ounce by Nov. 9.

However, the gold price lost a good deal of shine that day, plummeting back down to $1,860 per ton. The single-day decline marked gold’s largest drop in seven years, according to MarketWatch.

News of a potential Pfizer and BioNTech COVID-19 vaccine sent the dollar upward. The dollar index closed last Friday at 92.23 before closing Monday, Nov. 9, at 92.72.

Gold in Scotland?

Late last month, MetalMiner’s Stuart Burns delved into Scotgold’s efforts to develop gold reserves in Scotland’s Trossachs National Park.

“So, it has taken a strong gold price and political blessing for Scotland’s only domestic gold miner, the aptly named Scotgold, to gain permission to develop gold reserves in the Trossachs National Park,” Burns wrote. “The park is in an area of outstanding natural beauty and is home to some of the best-preserved oak woodlands in Scotland.

“Gold mining and Scotland are not activities and locations that one immediately makes an association between. In fact, more Scots rushed to California’s gold rush than ever mined at home.  However, gold prospectors have looked for gold in Scotland’s rivers for centuries.

“The country is in the broad gold belt that stretches from Scandinavia across Greenland to Canada with, in places, similar topography and geology.”

Newmont announces Q3 results

Newmont, the world’s largest gold miner, announced its Q3 financial results late last month.

The miner tallied gold production of 1.54 million ounces, up from 1.26 million ounces the previous quarter. However, Newmont produced 1.64 million ounces in Q3 2019.

“This was the best quarterly financial performance in Newmont’s history,” President and CEO Tom Palmer said. “We also remain focused above all else on protecting the health, safety and wellbeing of our workforce and neighboring communities as the pandemic continues.”

The firm also reported net income of $697 million in Q3 2020, up from $261 million in Q2 2020. Newmont recorded net income of $292 million in Q3 2019.

In addition to its financials, Newmont today announced new environmental targets.

The company said it is targeting a 30% reduction in greenhouse has emissions by 2030. Furthermore, it aims to achieve net zero carbon emissions by 2050.

“To achieve these aims, the Company will implement a new energy and climate investment standard, to be combined with its existing investment standards including shadow carbon pricing, in order to further inform its capital investment process,” Newmont said in a release. “This new investment standard will ensure that the 2030 reduction targets are embedded into investment decisions for projects such as fleet vehicles, production equipment, onsite renewable power generation and energy efficiency. Additionally, the Company will engage its partners and joint ventures in an effort to align joint venture operations targets and supply chain related emissions with Newmont’s targets.”

According to Newmont, 88% of the energy used for the company’s mining and milling comes from carbon-based fuels.

Actual metals prices and trends

The U.S. silver price rose 1.9% to $23.64 per ounce as of Nov. 1.

U.S. platinum bars fell 5.0% to $840 per ounce. Meanwhile, U.S. palladium bars slipped 5.4% to $2,086 per ounce.

In gold prices, U.S. gold bullion dipped 0.4% to $1,878.60 per ounce.

The Chinese gold bullion price rose 0.2% to $59.66 per gram.

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