Tag: Precious Metals

Gold Hits Record High Above $3,800 as Dollar Weakens and US Shutdown Looms

Posted on by slightbourne@noblecapitalmarkets.com

Gold extended its powerful rally on Monday, breaking above $3,800 an ounce for the first time as a weaker dollar and growing political uncertainty in Washington sent investors rushing toward safe-haven assets. The move underscores gold’s role as one of the top-performing investments of 2025, with prices already soaring more than 45% year-to-date.

Spot gold climbed as much as 2% to $3,833.59 an ounce, eclipsing last week’s record and securing a seventh consecutive weekly advance. The broader precious metals complex followed suit, with silver, platinum, and palladium also notching sizable gains. Silver jumped to $46.87, its highest level since 2011, while platinum briefly traded above $1,600 for the first time in more than a decade.

The surge comes as investors brace for the possibility of a US government shutdown. Without a short-term spending deal, federal funding will lapse this week, stalling critical government services and delaying key economic data releases, including September’s jobs report. Such an outcome could inject fresh volatility into financial markets, intensifying demand for gold as a defensive asset.

At the same time, the dollar slipped against major peers, further fueling gold’s rise. A softer greenback typically makes precious metals more affordable for international buyers, expanding global demand. The Bloomberg Dollar Spot Index fell 0.2% on Monday, extending recent weakness as traders weighed the implications of fiscal gridlock in Washington.

Beyond near-term political risks, gold continues to benefit from shifting expectations for Federal Reserve policy. Weaker job growth or signs of cooling inflation could strengthen the case for another rate cut when the Fed meets in October. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making the metal more attractive to both institutional and retail investors.

Despite ongoing debate among Fed officials about the pace of easing, markets are increasingly betting on additional support. That prospect, coupled with concerns about the central bank’s independence amid political pressures, has encouraged investors to seek hedges in tangible assets such as gold.

This year’s rally has been reinforced by sustained demand from both central banks and exchange-traded funds (ETFs). Gold-backed ETFs now hold their largest reserves since 2022, reflecting consistent inflows as investors look to diversify portfolios and guard against macroeconomic risks. Meanwhile, central banks across Asia and the Middle East have continued adding to their bullion reserves, contributing to persistent tightness in the physical market.

Silver, platinum, and palladium markets are also showing signs of strain. Analysts note that lease rates — the cost of borrowing metal — for these commodities have surged well above normal levels, signaling limited availability. Additional volatility may emerge as the US reviews potential tariffs on platinum-group metals, a move that could further squeeze supply.

With gold repeatedly setting new highs, questions are mounting about whether the rally is overextended. Yet many analysts argue bullion remains reasonably priced relative to the dollar and Treasury markets. As long as political risks remain elevated, the dollar stays under pressure, and the Fed leans toward easing, gold may continue to climb into uncharted territory.

For investors, the latest breakout reinforces gold’s dual role as both a crisis hedge and a long-term portfolio stabilizer. If Washington fails to reach a spending compromise, the metal’s safe-haven status could push prices toward fresh records before year-end.

Gold Surges Over 40% in 2025, On Track for Strongest Year Since 1979

Posted on by slightbourne@noblecapitalmarkets.com

Gold prices extended their rally on Monday, climbing to fresh record highs and setting the stage for what could be the precious metal’s best year in nearly half a century. Futures contracts rose to around $3,750 per ounce, while spot bullion held above $3,700. With a gain of more than 40% year-to-date, gold is on track for its most impressive annual performance since 1979.

The remarkable run has been fueled by a combination of macroeconomic forces, led by expectations of an extended Federal Reserve easing cycle. Last week, policymakers cut interest rates for the first time this year and signaled the likelihood of two more reductions before year-end. Lower rates typically enhance the appeal of gold, which does not generate yield, by reducing the opportunity cost of holding the asset.

A weakening U.S. dollar has added another layer of support. The dollar index, which tracks the greenback against a basket of major currencies, is down roughly 10% in 2025, giving gold buyers in other currencies stronger purchasing power. The dual dynamic of a softer dollar and looser monetary policy has created a powerful tailwind for the precious metal.

Investor demand has also been evident through record inflows into physically backed gold exchange-traded funds, which recently hit a three-year high. At the same time, central banks, particularly in emerging markets, have steadily expanded their reserves, increasing their reliance on gold as a hedge against currency volatility and shifting global trade dynamics.

Gold’s surge has easily outpaced traditional risk assets. The S&P 500 has gained about 13% this year, while bitcoin has advanced close to 20%. In contrast, gold’s rise above 40% underscores its position not only as a hedge during uncertain times but also as a top-performing asset class in 2025.

Fund manager sentiment reflects the divide between performance and positioning. A recent survey by Bank of America found gold now ranks as the second most crowded trade, just behind major U.S. technology stocks. Yet despite the recognition, the average allocation to gold among managers remains low at just over 2%, suggesting there could be room for further institutional participation.

Analysts remain constructive on the outlook. Goldman Sachs recently reiterated its view that gold could climb toward $4,000 per ounce by mid-2026, citing structural demand from ETFs, robust speculative interest, and accelerating central bank purchases. With geopolitical risks, trade uncertainty, and global monetary easing all converging, gold may continue to attract flows from investors seeking safety and diversification.

As 2025 heads into its final quarter, gold is not only outperforming but also reshaping how investors think about portfolio protection in a shifting economic landscape. Whether the momentum sustains into 2026 will depend on the trajectory of inflation, interest rates, and global risk appetite, but for now, gold is shining brighter than it has in decades.

Hemlo Mine Acquired by Carcetti Capital in Barrick’s $1.09B Deal

Posted on by slightbourne@noblecapitalmarkets.com

Barrick Mining Corporation (NYSE:B)(TSX:ABX) has agreed to sell its Hemlo Gold Mine in Ontario, Canada, to Carcetti Capital Corp., which will be renamed Hemlo Mining Corp. (HMC) upon closing. The deal, valued at up to $1.09 billion, underscores Barrick’s ongoing strategy of streamlining its portfolio to focus on Tier One gold and copper assets.

The transaction includes $875 million in cash upon closing, $50 million in HMC shares, and up to $165 million in additional cash payments linked to production and gold prices over a five-year period beginning in 2027. This structured consideration provides Barrick with near-term liquidity while also allowing exposure to Hemlo’s future performance through contingent payments.

HMC, currently listed on the NEX Board of the TSX Venture Exchange, plans to graduate to the main TSXV board in connection with the acquisition. The company is backed by a consortium of well-known investors in the mining sector, including Wheaton Precious Metals and Orion Mine Finance. Its management team brings strong credentials, highlighted by industry veteran Robert Quartermain, who played a role in the original discovery of Hemlo and later built SSR Mining and Pretium Resources into respected gold producers.

For Barrick, the Hemlo divestiture reflects a disciplined capital allocation strategy. Proceeds will be used to strengthen the company’s balance sheet and return capital to shareholders, aligning with its broader plan to prioritize Tier One operations that deliver the largest scale, lowest cost, and longest life. With the sale of Hemlo, alongside earlier transactions involving Donlin and Alturas, Barrick expects to generate more than $2 billion from non-core asset sales in 2025 alone.

Despite the divestment, Canada remains a core part of Barrick’s global footprint. The company continues to advance exploration projects and early-stage opportunities across the country, underscoring its commitment to discovering and developing world-class gold and copper mines within the region.

The sale also positions Hemlo for a new phase of growth under HMC. With dedicated focus, a seasoned leadership team, and the backing of strategic investors, Hemlo may benefit from renewed investment and operational improvements that could unlock further value.

Subject to customary regulatory approvals and closing conditions, the transaction is expected to close in the fourth quarter of 2025. CIBC World Markets acted as Barrick’s financial advisor, while Davies Ward Phillips & Vineberg LLP and Blake, Cassels & Graydon LLP provided legal counsel.

Barrick remains one of the world’s leading gold producers, with a global portfolio spanning 18 countries and six of the industry’s Tier One mines. The Hemlo sale marks the end of a long chapter for Barrick in northern Ontario, while reinforcing its commitment to building shareholder value through operational excellence and portfolio discipline.

Gold Surges to Record High as Weak US Jobs Data Fuels Fed Rate-Cut Bets

Posted on by slightbourne@noblecapitalmarkets.com

Gold soared to an all-time high on Friday after a weaker-than-expected U.S. jobs report intensified expectations that the Federal Reserve will cut interest rates later this month. The move marked the latest milestone in a multi-year rally that has been powered by economic uncertainty, rising geopolitical risks, and a steady flight to safe-haven assets.

Spot gold gained as much as 1.5% to break above $3,600 an ounce, eclipsing its previous record and capping a week of sharp gains. By early afternoon in New York, bullion was trading at $3,592.50 an ounce, up 1.3% on the day and on track for a 4.2% weekly advance, the strongest since late May. Silver also edged higher, while Treasury yields and the U.S. dollar slipped in response to the data.

The rally was triggered by a pivotal U.S. payrolls report showing that hiring slowed markedly in August, while the unemployment rate rose to its highest level since 2021. Economists said the numbers signaled clear signs of a cooling labor market, reinforcing the view that the Fed may need to act more aggressively to support growth. Lower interest rates typically enhance the appeal of gold, which does not yield interest or dividends but benefits from reduced opportunity costs in a lower-rate environment.

Investors have also been positioning for heightened volatility around the Fed’s independence. President Donald Trump has escalated his criticism of the central bank this year, vowing to secure a majority on the Fed’s board “very shortly” and pressing for sharp rate cuts. Markets are watching closely for a forthcoming ruling on whether Trump has grounds to remove Fed Governor Lisa Cook, a move that could allow him to appoint a more dovish policymaker and raise questions about the institution’s long-term credibility. Goldman Sachs analysts wrote in a recent note that gold could rally toward $5,000 an ounce if investors lose confidence in the Fed’s independence and begin shifting even a small portion of their holdings from Treasuries into bullion.

Over the past three years, gold and silver have more than doubled in value, with a steady stream of macroeconomic and geopolitical risks bolstering demand. Trade tensions, slowing global growth, and renewed concerns about the trajectory of U.S. monetary policy have all converged to create a powerful tailwind for precious metals. At the same time, strong buying from central banks and institutional investors has added structural support to the market, pushing gold firmly into record territory.

While some analysts warn that prices may be vulnerable to a correction if employment data stabilizes or inflation ticks higher, many expect gold’s appeal to remain strong. With borrowing costs likely heading lower and confidence in traditional policy tools wavering, bullion’s role as a store of value appears more attractive than ever. For now, gold’s latest record marks another reminder that in times of economic uncertainty, investors continue to seek the safety of precious metals.

Gold Rally Cools as White House Prepares to Clarify Import Rules

Posted on by slightbourne@noblecapitalmarkets.com

Gold futures retreated from record highs Friday after the White House signaled it would move to clarify confusion over whether U.S. tariffs apply to imported gold bars, calming a rally fueled by earlier reports of new restrictions.

The pullback came after a senior White House official told CNBC the administration will issue an executive order “in the near future” to address what it described as “misinformation” about the treatment of gold bars and other specialty products under recent trade measures.

Gold for December delivery briefly touched an all-time closing high of $3,491.30 per ounce before slipping to $3,463.30 in late trading on the news. Spot gold also eased but remained on track for its second consecutive weekly gain, supported by broader market optimism over potential U.S. interest rate cuts.

Market jitters began earlier in the day after the Swiss Precious Metals Association said U.S. Customs and Border Protection had indicated that 1-kilogram and 100-ounce gold cast bars were not excluded from the 39% tariffs recently imposed on Swiss exports. Switzerland is the world’s largest gold refiner, processing bullion that moves through the global financial system and serves as a key supplier to U.S. markets.

Christoph Wild, president of the Swiss Precious Metals Association, warned that such tariffs could disrupt the international flow of physical gold and complicate trade with the United States, which he called a “long-standing and historical partner” for Switzerland.

The association also noted the CBP’s clarification appeared to apply broadly, not only to Switzerland but to imports of those bar sizes from any country. That raised questions about the potential scope of the tariffs, which could affect bullion flows from other refining hubs as well.

The uncertainty briefly lit a fire under gold futures, as traders weighed the possibility of higher costs for physical delivery and tighter supply chains. Investors often turn to gold during geopolitical or trade-related turbulence, and the mere prospect of import restrictions can drive prices higher in the short term.

President Donald Trump’s administration has already levied sweeping tariffs on a range of Swiss goods this year, citing trade imbalances and what it says are unfair competitive practices. The gold bar question emerged as a flashpoint this week, underscoring how commodity markets can be caught in the crossfire of broader trade disputes.

Analysts say the White House clarification could help temper volatility, though the path forward for bullion prices will still hinge on multiple factors — including the Federal Reserve’s policy trajectory, inflation expectations, and global risk sentiment.

“Gold remains in a structurally bullish environment,” said one commodities strategist. “But if the White House makes it clear that bullion imports won’t face steep tariffs, some of the recent froth in prices could dissipate.”

Even after Friday’s dip, gold is up sharply for the year as investors hedge against currency fluctuations, equity market risks, and a shifting macroeconomic backdrop. Traders will be watching closely for the promised executive order, which could arrive within days and help determine whether the latest rally has room to run or is due for a deeper correction.

Gold Keeps Climbing — Is It Time to Look Closer at Precious Metals and Rare Earths?

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Gold prices remain strong as investors seek stability in volatile markets.
– Precious metals and rare earths are gaining renewed interest as geopolitical and economic uncertainty rises.
– Small-cap mining and metals companies may offer overlooked upside for risk-conscious investors.

With market volatility back in the headlines and rate cuts on hold, one asset class is quietly shining brighter than the rest: gold. The precious metal has extended its multi-month rally, continuing to hit near-record highs in 2025 as investors worldwide look for safer stores of value.

But this isn’t just about jewelry or bullion. What’s developing beneath the surface is a broader shift in capital flows — away from high-growth risk plays and into hard assets with intrinsic value. That includes not only gold and silver, but also rare earth metals, which are essential to everything from electric vehicles to semiconductors and military tech.

For middle market and small-cap investors, this could mark a key turning point.

Historically, gold performs well during periods of economic instability, inflationary pressure, and geopolitical stress — all conditions currently in play. With inflation proving sticky, central banks cautious on cuts, and conflict hotspots simmering, it’s no surprise institutional and retail investors alike are allocating more to precious metals.

Meanwhile, silver — often seen as gold’s more volatile cousin — has also begun to rally. With industrial use cases tied to clean energy, solar, and advanced tech manufacturing, silver offers a dual benefit: monetary safety and industrial upside.

But perhaps most interesting for middle-market investors is the renewed focus on rare earths — a segment often overlooked but increasingly critical in a tech-dependent world. These niche metals, such as neodymium, dysprosium, and praseodymium, are essential to magnets, batteries, and defense systems. With global supply chains still fragile and China dominating production, the U.S. and its allies are looking to diversify supply — and that puts smaller mining firms in the spotlight.

Companies in the junior mining and exploration space — many trading at micro- and small-cap valuations — could stand to benefit the most. While they carry exploration risk, the potential for outsized returns and strategic partnerships is drawing attention from institutional funds, especially those focused on ESG and supply chain security.

Gold’s continued rise isn’t just a price story — it’s a signal. A signal that investors are recalibrating their portfolios toward resilience, scarcity, and real-world utility.

For investors navigating uncertain terrain, exposure to precious and rare earth metals — whether through physical assets, ETFs, or small-cap equities — offers a compelling hedge. And with much of the sector still under the radar, now may be an ideal time to explore opportunities before the crowd catches on.

Take a moment to take a closer look at more emerging growth basic industries companies by taking a look at Noble Capital Markets Research Analyst Mark Reichman’s coverage list.

AngloGold Ashanti to Acquire Augusta Gold, Strengthening Its Hold in Nevada’s Beatty District

Posted on by slightbourne@noblecapitalmarkets.com

AngloGold Ashanti has announced a definitive agreement to acquire Augusta Gold Corp. in a deal valued at approximately C$152 million (US$111 million), marking a strategic move to consolidate its footprint in the Beatty District of Nevada—one of the most promising gold regions in North America.

The all-cash transaction offers C$1.70 per share to Augusta Gold shareholders, representing a 28% premium over the company’s July 15 closing price and a 37% premium over its 20-day volume-weighted average. The acquisition also includes the repayment of shareholder loans amounting to US$32.6 million as of March 31, 2025.

AngloGold Ashanti’s acquisition of Augusta Gold is aimed at bolstering its development plans in the Beatty District. The deal includes Augusta Gold’s key assets—namely the Reward and Bullfrog projects, both adjacent to AngloGold Ashanti’s existing land holdings.

“This acquisition reinforces the value we see in one of North America’s most prolific gold districts,” said Alberto Calderon, CEO of AngloGold Ashanti. “It strengthens our ability to plan and develop this region under an integrated strategy—streamlining operations, improving infrastructure access, and enhancing stakeholder collaboration.”

The Reward project is a permitted, feasibility-stage asset, while the Bullfrog deposit brings significant additional mineral resources. The acquired properties also come with surrounding tenements, further expanding AngloGold’s regional influence.

Under the agreement, Augusta Gold will become an indirect, wholly owned subsidiary of AngloGold Ashanti. Upon closing, its shares will be delisted from public exchanges and cease trading over-the-counter.

The deal has received unanimous approval from Augusta Gold’s board of directors and its audit committee. Furthermore, key shareholders—representing approximately 31.5% of Augusta’s outstanding stock—have signed voting support agreements to approve the merger.

The transaction is expected to close in the fourth quarter of 2025, pending standard regulatory and shareholder approvals. Augusta Gold will seek approval from a majority of shareholders, excluding related parties, at a special meeting later this year.

AngloGold Ashanti is working with RBC Capital Markets as financial advisor, with legal counsel provided by Womble Bond Dickinson (US) LLP, Cravath, Swaine & Moore LLP in the U.S., and Stikeman Elliott LLP in Canada.

Headquartered in Denver, AngloGold Ashanti is a leading global gold mining company with operations, projects, and exploration activities across ten countries on four continents. The company’s expansion in the U.S. through strategic acquisitions is part of its broader plan to enhance production capabilities and resource access in high-potential districts.

As the Beatty District emerges as a critical gold hub, this acquisition marks a significant milestone for AngloGold Ashanti. By integrating Augusta Gold’s assets, the company aims to unlock further value in the region, streamline its development efforts, and reinforce its status as a dominant force in North American gold mining.

Silver’s Perfect Storm: Physical Squeeze Drives Prices to 13-Year Highs

Posted on by slightbourne@noblecapitalmarkets.com

Silver prices surged to their highest level since 2011 this week, fueled by rising premiums in the U.S., tight physical supply in London, and increasing industrial demand. The white metal climbed as high as $37.59 per ounce in the spot market, with U.S. futures contracts pushing toward $38.46—an unusually large gap that signals growing pressure in the global silver supply chain.

This recent rally underscores silver’s unique status as both a monetary asset and a critical industrial material, especially in sectors tied to clean energy. Up more than 27% year-to-date, silver has begun to outpace gold and other precious metals, attracting the attention of traders, long-term investors, and industrial buyers alike.

One of the more telling developments this week is the growing dislocation between the London spot price and U.S. futures contracts. Typically, such discrepancies are short-lived as traders use arbitrage to align prices. But this time, the gap is persisting—indicating logistical constraints and a tightening supply chain.

The root of this premium appears to stem from earlier in the year, when U.S. tariff threats on silver imports spurred a surge in futures prices. That sparked a rush to secure physical metal for delivery to New York’s COMEX warehouses. While the White House later confirmed that bullion would not be exempt from tariffs, the resulting outflow drained accessible inventories.

According to Daniel Ghali of TD Securities, the silver floating in the market is now at record lows. LBMA silver’s free-float has reached its lowest levels in recorded history, with analysts emphasizing that a physical squeeze may be necessary to rebalance the market.

Another warning sign: borrowing costs for silver in London have surged. The one-month implied lease rate jumped to an annualized 4.5% on Friday—well above its usual near-zero levels. This is a clear indicator that silver in London is becoming harder to access, particularly for short sellers and industrial users that rely on short-term lending of physical silver.

Much of London’s silver is held by exchange-traded funds (ETFs), which are not easily available for lending. Bloomberg data shows a 1.1 million ounce inflow into silver-backed ETFs on Thursday alone. While this is good news for long-term investors, it exacerbates near-term scarcity for traders seeking physical delivery.

Silver’s recent surge is also being driven by robust demand from both sides of its identity: as a safe-haven asset and as an industrial input. Its role in clean energy—especially in photovoltaic solar panels—has elevated silver’s strategic importance. According to the Silver Institute, the market is now in its fifth consecutive annual deficit.

As the world pushes further into renewable energy technologies, demand for silver in solar, EVs, and advanced electronics is expected to accelerate.

With inventory levels falling, premiums rising, and industrial demand growing, silver’s bullish outlook appears to be more than a short-term spike. If market dislocations persist and supply tightness continues, silver could enter a new phase of price discovery—driven as much by fundamentals as by financial flows.

Investors would be wise to watch the $40 level as the next psychological milestone. And if the physical squeeze intensifies, we may be entering a new era for this historically underappreciated metal.

Comstock (LODE) – Maximizing the Value of Comstock’s Mining Assets

Posted on by slightbourne@noblecapitalmarkets.com


Tuesday, June 10, 2025

Comstock (NYSE: LODE) innovates technologies that contribute to global decarbonization and circularity by efficiently converting under-utilized natural resources into renewable fuels and electrification products that contribute to balancing global uses and emissions of carbon. The Company intends to achieve exponential growth and extraordinary financial, natural, and social gains by building, owning, and operating a fleet of advanced carbon neutral extraction and refining facilities, by selling an array of complimentary process solutions and related services, and by licensing selected technologies to qualified strategic partners. To learn more, please visit www.comstock.inc.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Amended agreement with Mackay Precious Metals. Comstock Inc. amended the membership interest purchase agreement to sell 100% of its northern most patented and unpatented mining claims, mineral exploration rights and town lots owned by Comstock Northern Exploration, LLC, plus the 25% issued and outstanding membership interest that Comstock owns in Pelen LLC to Mackay Precious Metals Inc. Consideration includes $2.95 million in cash plus a 1.5% NSR production royalty associated with the properties.

More favorable terms. The amendment increases the sale price to $2.95 million in cash from the previous $2.75 million in both cash and stock, thus increasing the cash component of the transaction by $1.2 million. Comstock previously received $1.0 million in cash. The remaining $1.95 million is due in a series of payments in June, July, and ending on or before August 30. Additionally, Mackay will transfer approximately 300 acres of patented and unpatented mining properties in Lyon County, Nevada, that are adjacent to and expand the area of Comstock’s Dayton Consolidated and Spring Valley mineral claims and lands for no consideration.


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Gold Nears All-Time Highs: Why It’s Defying the Typical Market Cycle

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Gold surges as investors seek safety from Trump’s tariff threats.
– U.S. fiscal worries and a weaker dollar drive demand for gold.
– Gold defies norms, staying strong despite rising Treasury yields.

Gold is trading just a few percentage points below its all-time highs, confounding expectations for a significant retracement typical of most asset classes. In a normal market cycle, rapid price increases are often followed by pullbacks as traders take profits and reassess fundamentals. But gold’s current behavior suggests that broader forces are at play, reshaping how investors evaluate risk and value in today’s geopolitical and macroeconomic landscape.

As of May 23, 2025, gold surged nearly 2% to $3,357.78 an ounce, extending its weekly gain toward 5%. This spike follows fresh threats from former President Donald Trump, who vowed to impose sweeping tariffs on the European Union and Apple Inc. These geopolitical tensions have reignited demand for gold as a safe haven, a traditional response to rising uncertainty.

According to a Bloomberg report, Trump’s proposed 50% tariffs on EU goods and a minimum 25% tariff on Apple if it fails to manufacture in the U.S. rattled financial markets. U.S. equity futures dropped in response, highlighting investor unease. At the same time, bullion prices surged as traders sought refuge from the volatility.

But tariffs alone don’t explain why gold is hovering so close to record highs without a typical retracement. Several structural shifts underpin the resilience of gold in this cycle.

First, gold is being buoyed by deep concerns over U.S. fiscal health. Moody’s recently downgraded the U.S. credit rating, citing fears that the government’s ballooning deficit—exacerbated by Trump’s tax proposals—could worsen. With trust in government debt shaken, gold has gained favor as a store of value.

Second, the usual inverse relationship between gold and Treasury yields appears to be breaking down. Yields on 10-year U.S. Treasuries have risen to around 4.5%, a level that would historically undermine gold, which offers no yield. However, this time, investors are prioritizing safety over returns. The desire to shield portfolios from political and economic instability is overriding traditional valuation models.

Third, the macroeconomic backdrop includes a weakening U.S. dollar, as evidenced by the Bloomberg Dollar Spot Index slipping 0.6% for the week. A softer dollar makes gold cheaper for foreign buyers, further boosting demand.

Finally, investor psychology has shifted. Gold’s surge of over 25% this year has created a momentum-driven market where fear of missing out (FOMO) is fueling further buying. This sentiment-driven rally leaves little room for retracement, especially when headlines continue to reinforce the bullish narrative.

In conclusion, gold’s current strength—so close to its peak with little sign of reversal—reflects more than just a temporary flight to safety. It signals a deeper lack of confidence in traditional hedges like government bonds and an increasingly uncertain geopolitical environment. Until those pressures ease, gold may not follow the rules of a “normal” market cycle.

Gold’s Surge Revives Investor Interest in Mining Stocks

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Gold miners’ equity funds are seeing their largest net inflows in over a year as gold prices reach record highs.
– After years of cost struggles, major miners like Newmont and Barrick Gold are benefiting from increased profitability and stronger cash flows.
– Investors are turning back to mining stocks as a hedge against inflation and market uncertainty.

After months of outflows, investors are returning to gold mining stocks, buoyed by record-high gold prices that have improved the profit outlook for mining firms. With gold surpassing $3,000 an ounce this year—a gain of more than 15%—funds investing in gold miners saw their first net monthly inflow in six months this March, totaling $555.3 million, according to LSEG Lipper data.

While gold prices also climbed in 2024, gold miners faced mounting cost pressures from rising labor and fuel expenses, as well as regulatory setbacks like tax disputes in Mali and project delays in Canada. These challenges pushed many investors toward traditional gold funds instead of equities, leading to a net $4.6 billion outflow from gold miner-focused funds in 2024—the highest in a decade. Conversely, physical gold and gold derivative funds attracted $17.8 billion, the most in five years.

With rising gold prices boosting profitability, mining stocks are once again attracting investor interest. Leading companies like Newmont and Barrick Gold have recovered from last year’s declines, posting year-to-date gains of 27% and 21.5%, respectively. After facing cost pressures in recent years, gold mining firms are now in a stronger position to capitalize on higher gold prices, making them more appealing to investors.

The improved market conditions are prompting major gold miners to reward shareholders. Barrick Gold recently announced a $1 billion share buyback after reporting strong profits and doubling its free cash flow in Q4 2024. Similarly, AngloGold Ashanti declared a final dividend of 91 U.S. cents per share—nearly five times higher than the previous year—while Gold Fields hinted at a potential share buyback in 2025. Harmony Gold also revealed plans to self-fund the construction of a new copper mine in Australia.

With miners stabilizing operations and benefiting from higher gold prices, mining equities are increasingly viewed as an attractive investment. As market uncertainty and inflation persist, investors are showing renewed interest in gold mining stocks as a potential hedge and diversification strategy.

Given the miners’ historically low valuations, some analysts argue that gold mining stocks may present even better opportunities than gold itself. As confidence in gold miners grows alongside surging gold prices, these stocks may continue to attract investors seeking stability in an unpredictable market.

Smaller and junior gold mining companies stand to benefit significantly from this renewed investor interest in mining stocks. Unlike major miners, which already have strong cash flows and established operations, junior miners often struggle with financing new projects and navigating regulatory hurdles. However, with gold prices at record highs, investor appetite for higher-risk, high-reward opportunities may increase, providing these smaller companies with much-needed capital.

Higher gold prices also make previously unviable mining projects more attractive, allowing junior miners to push forward with exploration and development. Companies with promising gold reserves but lacking production capabilities may now find it easier to secure funding through equity offerings or partnerships with larger mining firms.

Additionally, with major miners focusing on share buybacks and dividends, they may look to acquire smaller mining companies to replenish their reserves, driving M&A activity in the sector. This could create lucrative exit opportunities for junior miners and early-stage investors.

Gold Surges to Historic High as Economic Uncertainties Mount

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Gold hits record $2,817/oz amid dollar weakness and trade policy concerns
– Trump’s proposed tariffs spark renewed interest in safe-haven assets
– Federal Reserve adopts cautious stance on rate cuts amid policy uncertainty

Gold prices reached an unprecedented peak of $2,817 per ounce, marking a 1.4% surge amid growing economic uncertainties and a weakening dollar. The precious metal’s rally reflects mounting investor concerns over President Trump’s proposed tariff measures and their potential impact on global trade relations.

The rally comes as traders digest Trump’s latest announcement of potential 25% tariffs on Mexico and Canada, along with hints of broader levies that could exceed previous Treasury estimates. This policy uncertainty, coupled with a softer dollar following the European Central Bank’s rate decision, has intensified the appeal of gold as a safe-haven asset.

The Federal Reserve’s recent “wait-and-see” stance, articulated by Chair Jerome Powell during the year’s first FOMC meeting, has added another layer of complexity to the market dynamics. While holding interest rates steady, the Fed expressed caution about rushing into rate cuts, particularly given the uncertain impact of the new administration’s economic policies.

Market strategists, including Phil Streible of Blue Line Futures, point to growing concerns about stagflation – a combination of rising inflation and declining growth – as a key driver behind gold’s attractiveness. The precious metal historically performs well in such economic conditions, making it an increasingly appealing hedge for investors.

The rally has sparked a notable shift in precious metals markets, with U.S. prices for both gold and silver commanding premiums over international benchmarks. Dealers and traders are accelerating efforts to secure inventory ahead of potential tariff implementation, further driving up domestic prices.

Beyond immediate trade concerns, the precious metal’s appeal is bolstered by persistent worries over growing U.S. debt levels. Many analysts anticipate continued strength in gold prices throughout 2025, supported by central banks’ efforts to diversify reserves and reduce dollar dependency.

The latest surge represents a significant milestone in gold’s historical trajectory, surpassing the previous record set in October. This breakthrough is particularly notable as it comes during a period of relative economic strength, suggesting that investors are increasingly viewing gold as both a hedge against uncertainty and a strategic asset class in diversified portfolios.

The current gold market dynamics echo historical patterns of price appreciation during periods of significant policy shifts and economic uncertainty. Historical data shows that gold has typically performed strongly during periods of trade tensions and currency fluctuations, with the metal gaining an average of 15% during similar periods of policy uncertainty in the past two decades

Market watchers are particularly focused on the Saturday deadline for Mexican and Canadian tariffs, which could trigger further volatility in precious metals markets and potentially drive gold to new records as investors seek safety amid economic policy shifts.

Take a moment to look at emerging gold mining companies by taking a look at Noble Capital Markets Research Analyst Mark Reichman’s coverage list.

Probe Gold Expands its Monique Gold Deposit with Key Acquisition

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Probe Gold acquires Bermont Claims to extend Monique Deposit’s strike length by 750 meters, adding exploration potential.
– Historical drilling identified high-grade gold zones, including intercepts of up to 30.9 g/t gold over 1.6 meters.
– The acquisition expands surface mine infrastructure, facilitating operational efficiencies and reduced costs.

Probe Gold Inc. has announced the acquisition of the Bermont Claims property, strategically located adjacent to its Monique Gold Deposit in Val-d’Or, Quebec. This move is poised to extend the strike length of the Monique Deposit by 750 meters, offering significant opportunities for resource expansion and exploration. The transaction aligns with Probe Gold’s commitment to maximizing the potential of its Novador Development Project and advancing high-quality gold resources.

The newly acquired property spans ten contiguous claims and adds critical exploration upside. Historical drilling has identified high-grade gold zones, including the Bermont and Adelemont zones, which remain open laterally and at depth. Despite limited exploration, previous results from the property demonstrate promising grades, such as 30.9 g/t gold over 1.6 meters and 5.7 g/t gold over 3.2 meters. Probe Gold plans to incorporate this land into its 2025 exploration and resource expansion programs, focusing on uncovering additional high-grade mineralization.

David Palmer, President and CEO of Probe Gold, emphasized the strategic value of this acquisition. “This new land enhances our Monique Deposit by increasing exploration potential by 30%, while also offering critical space for surface mine infrastructure,” Palmer stated. He further highlighted the acquisition’s potential to unlock new high-grade discoveries and contribute to an even more robust Novador Development Project.

The transaction includes an upfront payment of $3 million, split evenly between cash and common shares of Probe Gold. Additionally, a $1.5 million milestone payment, in cash or shares, will be made upon confirming a resource of at least 1 million ounces of gold on the property. Jadmine, the seller, will retain a 3.5% net smelter return royalty, of which 2.5% can be purchased by Probe Gold for $2.5 million.

The Bermont Claims property complements the Monique Deposit, which currently hosts 3.56 million ounces of measured and indicated resources and 677,300 ounces of inferred resources. Geological similarities between the Bermont Claims and Monique Deposit strengthen the potential for integrating new discoveries into Probe’s existing operations. Moreover, the property’s expanded surface area is expected to facilitate mine design improvements, reducing costs and increasing operational efficiency.

Since 2016, Probe Gold has been consolidating its position in the Val-d’Or mining district, known for its prolific gold production and mining-friendly environment. The Novador Development Project, which hosts four past-producing mines and accounts for 80% of the company’s gold resources, is central to Probe Gold’s strategy. This acquisition aligns with the company’s focus on advancing resource-rich properties in politically stable and low-cost regions.

The deal is expected to close in the coming weeks, subject to regulatory approvals and customary closing conditions. With an aggressive exploration plan set for 2025, Probe Gold aims to leverage this acquisition to enhance its production profile and create long-term value for shareholders.

As the Monique Deposit grows in scope and potential, Probe Gold solidifies its position as a leader in the Canadian gold mining industry, driving forward with a vision for sustainable growth and innovation.