Gold continued to move sideways with traders suggesting there were few obvious catalysts to kick it out of its current torpor, though Deutsche Bank yesterday’s rally was a surprise.
“In this more 'normal' environment one would think that investor appetite would continue to decline leaving gold to grind lower,” it said, but after the dropping below US$1,640/oz in mid-day trading, buying appeared, it noted.
One factor the broker cites is that retail demand and central bank demand for gold continues, seemingly unabated.
Even so, spot gold was trading US$3.38 lower at US$1,647.64 ahead of the G-20 meeting on Friday.
Like the G-7 gathering yesterday, “currency wars” are likely to be high on the agenda, which may weigh on the gold price.
Platinum again outstripped gold, with concerns over supply coming in to focus again as Zimbabwe announced plans to reclaim 28,000 hectares of land from Implats’ operation in the country.
Spot platinum rose by US$9 to US$1,772 making a gain of almost 12% this year compared to a near 2% decline in the gold price.
On the company front, African gold miner African Barrick disappointed already modest expectations with its 2012 results.
The Tanzanian mine owner posted a fourth quarter loss after heavy write-downs alongside a warning of a further fall in output.
African Barrick expects to produce between 540,000-600,000 gold ounces this year, down from 625,000 ounces in 2012. It would it make a fourth year running that output has fallen.
““An operation review is underway, but we believe it will take a substantial amount of time until results will be evident,” broker Canaccord said.
