Rand’s rally takes the shine off a powerful gold value for SA miners

collected by :kiven Dixter

Nairobi — For South African gold miners, it's both a best & worse of times. But an equally impressive rally in the rand means which SA-focused producers are likely to miss out on the party. Because mining companies pay generality of their expenses in native currency, a stronger rand squeezes profit margins & could render some operations unprofitable. The gold value rally "won't make a difference in the short term" to South African miners, Menke said. More than half of South African gold shafts perhaps be operating at a loss & a stronger currency increases the danger of closures, told Rene Hochreiter, analyst at Noah Capital Markets.

Davos team propels gold value to 18-month high, Trump shoots it down

But the metal reversed course in the afternoon after America President Trump said CNBC which Mnuchin's comments had been misinterpreted:"The $ Information Systems will get stronger & stronger & in the end I need to see a powerful dollar," Trump said. Towards the lock of trading in fresh York, the generality active futures contract on the Comex market had fallen back to $1,345 an ounce. Volumes were huge by only under 50m ounces of February delivery gold traded. Gold & the America $ usually move in opposite directions & the greenback has declined sharply against great currencies ever Trump's inauguration. Gold has gained further than $100 an ounce ever mid-December.

Stronger rand injury rand gold value in Q4

as informed in JOHANNESBURG (miningweekly.com) – A stronger rand negatively influenced on rand gold prices in the 4th quarter of 2017, SA Bullion reports. For the 4th quarter, the gold footage in rand was quite different from which of the dollar, as the latter weakened against great currencies. These currency moves conspired to deliver poor performance for gold in rand," Davies noted. For the quarter, gold in rand lost price to return -7.4% & for the year made a small earn by a return of 1.3%. South Africa's credit ratings too took a pummelling in 2017.