Kaloti Precious Metals-Morning Market Report-Friday, March 24, 2017

Market Daily & Weekly

Note: Indications only, open and closing prices are bids; Data source: Bloomberg; Times as per Dubai

Fundamentals and News

Reviving King of Gold Means Getting Mine Workers Off Their Knees

During his early years as a miner in South Africa, Joas Mahanuque spent six hours a day on his knees drilling for Impala Platinum Holdings Ltd. The dust-filled tunnels half a mile underground were too low for him to stand, and temperatures reached 105 degrees Fahrenheit (40 degrees Celsius).

Today, he has essentially the same job 2.5 kilometers (1.5 miles) beneath the surface for Gold Fields Ltd. But unlike most of the precious-metals miners in the country, Mahanuque sits comfortably atop a new 7-ton vehicle, using a joystick to control an 8-foot drill as ventilated air blows behind him.

If only it was that easy for the rest of the once dominant South African gold industry. After more than a century as the world’s top producer, the country has slipped to No. 7 over the past decade. Mines are deep, labor intensive and are being developed with mostly drill-and-blast methods little changed since the 1950s, which means costs have soared and output has dropped

Gold prices have visited the plus and minus columns so far Wednesday, in choppy, quieter trading. The marketplace is anxiously awaiting an expected U.S. House of Representatives vote later Thursday on the repeal of Obamacare. If that vote to repeal and replace the "Affordable Care Act" fails, the Trump Administration could be in trouble in the coming months, regarding its intended plans to lower taxes and eliminate government regulations. A failure by the House to repeal the act could also pressure the stock market, which in turn should benefit the safe-haven gold market. April gold waslast down $2.20 an ounce at $1,247.60

Data Forthcoming Releases

Courtesy: http://kalotipm.com.sg/kaloti-market-report-24th-march-2017