Gold is slowly regaining its status as a safe haven and a hedge against inflation after months of turbulence weighed by rising yields and dollar strength. The precious metal has bounced off eight months lows and appears to be on its way back to the $1800 an ounce level. The spike in prices in recent weeks might as well be the catalyst fuelling increasing mining operations.
Gold Prices Bounce back
Miners are increasingly ramping up production operations as they look to take advantage of the high gold prices that are showing signs of edging higher. A report from Singapore Bullion Market indicates growing bullishness around the precious metal.
With interest rates at record lows and a spike in fiscal spending, capital inflows into the bullion have continued to spike in recent weeks. Low rates and yields should continue to favor higher gold prices given the low opportunity cost in play.
Loose fiscal and monetary policy should continue to work in gold favor. Such policies create inflation risks of which gold tends to benefit from as a hedge against inflation. Likewise, the prospects of gold powering back to record highs above the $2,000 mark are very high.
KORE Mining Discovery
KORE Mining Ltd. (TSXV: KORE) (OTCQX: KOREF) is one of the companies well-positioned to benefit from a spike in gold prices. The company is fresh from reporting positive sampling results at its Picacho gold mine.
The company discovered gold in several dry stream beds. Likewise, it also discovered several additional outcrops with anomalous gold rock. The positive staking results extend KORE’s control of a highly prolific historic mining district.
Nomad Royalty Solid Results
Even as KORE Mining made a major discovery at its flagship project, Nomad Royalty Company Ltd (TSE:NSR) (OTCQX:NSRXF) has confirmed record gold delivery at 5,575 equivalent ounces in the first quarter.
Likewise, the company recorded preliminary revenues amounting to $9.7 million for the three months ended March 31. The preliminary cash operating margin totaled $7.9 million. During the quarter, Nomad Royalty received its first gold shipment from the Blyvoor mine in South Africa.