The prices reached past $3,800 an ounce for the first time since 1980
Gold prices have reportedly reached a record high of more than $3,800 per ounce for the first time since 1980, following the expectations of the US issuing more rate cuts and a growing concern about a government shutdown urging safe-haven demand to rise.
As gold reached its first record since 1980, Deutsche Bank has forecasted that it will increase further, potentially reaching higher than $4,000 by the end of the year. This implied that a full-year return will reach more than 50% and caused a shift among firms when it comes to their institutional positioning.
The notable increase was caused by a weaker dollar as well as the market tightness across precious metals. Many analysts believed that gold was potentially entering a “blowoff phase” and expected prices to reach $5,000 before the pause of the current rally. This was pushed by a loss of confidence in government debt sustainability and fiat currency stability, according to traders.
Lake Victoria Gold is reportedly mobilizing drilling equipment at Area C, which us the highest-grade zone within its Imwelo Gold Project in Tanzania. The company is looking to advance on parallel fronts, with the first rig set to start drilling on Oct. 6, with a second one on order to boost progress.
“By mobilizing now and adding a second rig, we're advancing Imwelo on two fronts---short-term production readiness and resource growth potential. This drill program is designed to tighten mine scheduling, validate pit and slope design, and test down-dip and western extensions at Area C,” said Lake Victoria Gold President and CEO Marc Cernovitch.
The program is targeting mineralization which has been tested only to about 45 metres deep. As new holes were designed to intersect the gold zones at the 100 and 200 metres down-dip, Area C continued to have an average grade of 3.7 g/t gold across the historical resource.
The drilling launch followed the firm’s agreement with the Tanzanian government, which established a framework for the statutory minimum of 16% free carried interest in the project.
Apart from gold, silver, platinum, and palladium were also seeing strong gains following the surging of lease rates above their normal levels.
