Fed hike could knock gold price down to $1 000/oz – Gold Fields – by Martin Creamer (MiningWeekly.com – November 19, 2015)


JOHANNESBURG (miningweekly.com) – A raising of US interest rates in December could knock gold back to a level of $1 000/oz, Gold Fields CEO Nick Holland said on Thursday.

The US Federal Reserve sent out new signals on Wednesday that officials would raise interest rates in December as long as job growth and inflation trends did not take a turn for the worse, and on Thursday the South African Reserve Bank lifted South Africa’s interest rates by 25 basis points to 6.25%.

At a media roundtable attended by Creamer Media’s Mining Weekly Online on Gold Fields’ results for the three months to September 30, Holland was answering journalists questions against the background of gold tumbling to a near six-year low of $1 064/oz this week. (Also watch attached Creamer Media video).

“We think that a Fed hike, assuming that it does now come in December, could knock gold back again . . . maybe it takes another knock to $1 000/oz. “We’ve talked to a lot of people in the market. We’ve talked to research agencies in the US who do work for us. That seems to be the consensus, and it may stay there for a little while,” the head of the Johannesburg- and New York-listed gold mining company commented.

Federal Reserve uncertainty on an interest rate increase has been playing havoc with the gold price in recent weeks. “This uncertainty is just hammering us,” Gold Fields CFO Paul Schmidt commented.

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