Gold approached $2,000 earlier this week but then fizzled as the upcoming Fed hike weighed, noted mining audiences manager Michael McCrae.
On Friday McCrae recorded Kitco Roundtable.
The Fed skipped a raise in June. There were signs that the Fed is winning its inflation battle with favorable data about jobs and inflation, but the Fed will not be deterred. Analysts say that The Fed is almost certain to hike its policy rate by 25bp to between 5.25% and 5.50% at next week's FOMC meeting.
Gold finished the week in the $1,960 range.
Copper was off for the week. China did introduce a modest stimulus to boost automobile and electronics consumption, but it didn't climb the wall of worry. Slow China growth has been an anchor on copper. Copper futures dropped about 2%. Last checked copper was in the 3.80 a pound range.
Newmont (NYSE: NEM) (TSX: NGT), the world's largest gold producer, announced this week that its Q2 2023 attributable gold production decreased 17% y-o-y to 1.24 million ounces primarily due to lower production at Peñasquito, Akyem, Merian, Cerro Negro and Boddington. However, Newmont affirmed guidance.
Newmont dropped three percent on the week. Newmont acquisition target, Newcrest, was down 2% for the week.
There may be some bullishness. Equipment makers have been reporting some strong quarters. Sandvik reported that its revenue grew 16% in the second quarter. Mining equipment company Epiroc said this week that revenue was up 34% in Q2
