Precious Metals Market Report
Friday 24 March, 2017
Fundamentals and News
Reviving King of Gold Means Getting Mine Workers Off Their Knees
(Bloomberg)
During his early years as a miner in South Africa, Joas Mahanuque spent six hours a day on his knees drilling for Impala Platinum Holdings Ltd. The dust-filled tunnels half a mile underground were too low for him to stand, and temperatures reached 105 degrees Fahrenheit (40 degrees Celsius).
Today, he has essentially the same job 2.5 kilometers (1.5 miles) beneath the surface for Gold Fields Ltd. But unlike most of the precious-metals miners in the country, Mahanuque sits comfortably atop a new 7-ton vehicle, using a joystick to control an 8-foot drill as ventilated air blows behind him.
“It’s not hard,” the 37-year-old said while taking a break under the bright tunnel lights of South Deep, the country’s only fully mechanized underground gold mine. “You just sit and operate and make money.”
If only it was that easy for the rest of the once dominant South African gold industry. After more than a century as the world’s top producer, the country has slipped to No. 7 over the past decade. Mines are deep, labor intensive and are being developed with mostly drill-and-blast methods little changed since the 1950s, which means costs have soared and output has dropped
Gold prices have visited the plus and minus columns so far Wednesday, in choppy, quieter trading. The marketplace is anxiously awaiting an expected U.S. House of Representatives vote later Thursday on the repeal of Obamacare. If that vote to repeal and replace the “Affordable Care Act” fails, the Trump Administration could be in trouble in the coming months, regarding its intended plans to lower taxes and eliminate government regulations. A failure by the House to repeal the act could also pressure the stock market, which in turn should benefit the safe-have gold market. April gold was last down $2.20 an ounce at $1,247.60
(*source Bloomberg)
Data – Forthcoming Release
Technical Outlook and Commentary: Gold
Gold for Spot delivery was closed at $1245.20 an ounce; with loss of $3.64 or -0.29 percent at 2.00 a.m. Dubai time closing, from its previous close of $1248
Spot Gold technically seems having resistance levels at 1252 and 1258.8 respectively, while the supports are seen at $1230 and 1223.20 respectively.
Technical Outlook and Commentary: Silver
Silver for Spot delivery was closed at $17.58 an ounce; with loss of $0.04 or 0.23 percent at 2.00 a.m. Dubai time closing, from its previous close of $17.54
The Fibonacci levels on chart are showing resistance at $17.68 and $17.78 while the supports are seen at $17.32 and $ 17.22 respectively.
Resistance and Support Levels
Indications only, open & closing prices are bids; data source: Bloomberg; important disclaimer below; Times as per Dubai
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