Solid Minerals
Gold drops as tension in Ukraine subsides
LONDON – Gold prices headed lower Wednesday, as investors ditched the safe-haven metal following decreasing tensions in Eastern Europe and solid U.S. economic numbers.
Gold for June delivery, the most actively traded contract, was down 0.2%, or $2.90, to $1262.60 a troy ounce on the Comex division of the New York Mercantile Exchange. The move follows a nearly 2% drop on Tuesday, which saw gold prices hit the lowest level since early February.
Prices for the precious metal spent most of May hovering around $1,300 an ounce, as investors weighed fallout from the political conflict between Russia and Ukraine against an improving U.S. economic picture. The scales tipped in the last few days, after a weekend presidential election in Ukraine went off without a hitch and Russia indicated a willingness to work with the new government. As the conflict between the two countries eases, investors see less of a need to hold gold, which some use as a haven in times of political or economic uncertainty.
The metal also took a knock Tuesday after data for U.S. consumer confidence in May and durable-goods orders in April surpassed expectations.
Despite its recent drop, some analysts said gold has held up better than expected, considering the unfavorable conditions. However, “with little support coming through from macro data, geopolitical events and physical demand, we believe it’s only a matter of time before that resilience becomes exhausted,” said Edel Tully, a strategist at UBS, UBSN.VX +0.77% in a note to investors.
Prices are likely to hit $1,250 an ounce within a month, UBS said.
In other markets, palladium prices rallied more than 1% to a new 33-month high of $844.65 a troy ounce as concerns persisted that world supplies are tightening amid a continuing miners’ strike in South Africa, the world’s second-largest exporter of the metal. The gains came even as South Africa’s new mining minister vowed to end the 18-week strike, which has brought platinum output to a near halt and weakened the country’s economic growth.
Platinum for July delivery was down 0.5% at $1,454.50 an ounce, a two-week low.
– WALLSTREET JOURNAL
Business
Nigeria set to boost Naira value and foreign reserve with local gold production, as Tinubu receives gold bar
IN a significant move to strengthen Nigeria’s economy, President Bola Tinubu received a symbolic gold bar on Sunday from the Minister of Solid Minerals Development, Dele Alake.
This gesture marks the commencement of the National Gold Purchase Program (NGPP), aimed at boosting the naira’s value and enhancing the country’s foreign reserves.
Minister Alake expressed gratitude to President Tinubu for his support of reforms in the solid minerals sector.
He highlighted that the NGPP, which involves sourcing gold from artisanal and small-scale miners and refining it to meet the London Bullion Market Association’s Good Delivery Standard, will substantially contribute to Nigeria’s economic stability.
Alake stated “This initiative will significantly increase our foreign reserves and strengthen the naira. The refined gold will be supplied to the Central Bank of Nigeria, marking a crucial step in our economic strategy.”
The presentation also underscored the first commercial transaction under the NGPP, establishing a centralized gold purchasing system that integrates small-scale miners, cooperatives, and production units across the nation.
This program is expected to provide a structured market for gold, fostering economic growth and stability.
He said, “The successful completion of the first commercial transaction clearly demonstrates the National Gold Purchase Program’s effectiveness. It has increased the nation’s foreign reserves assets and shown that using the Nigerian Naira to purchase a liquid asset traded in United States Dollars, such as gold, is a viable strategy. This transaction has also underscored the potential of the National Gold Purchase Program to enhance fiscal and monetary stability.”
Alake added that the initial commercial transaction under the program resulted in a +US$5 million boost in Nigeria’s foreign reserve assets.
The transaction involved refining over 70 kilograms of gold to meet the London Bullion Market quality standard and aggregating locally mined gold, thereby infusing approximately NGN6 billion into the rural economy.
President Tinubu expressed appreciation for the Ministry’s accomplishment in advancing the government’s goal of economic diversification by acknowledging and displaying the symbolic gold bar
Solid Minerals
FG Fingers Foreigners Sponsoring Banditry For Illegal Mining
The Nigerian Government has threatened to come down heavily on foreigners sponsoring bandictory as a way of sustaining illegal mining activities in parts of the country.
The warning was handed down in Abuja by Minister, Solid Minerals Development, Dr Oladele Alake, while receiving a delegation of the Nigeria-China Chamber of Mines led by its National President, Dr. Olugbenga Ajala.
Details of these were contained in a statement released by Head, Press & PR, Ministry of Solid Minerals Development, Alaba Balogun over the weekend.
The statement cited, Dr Alake, thus, “The government will come down firmly on these unscrupulous foreign operators sponsoring banditry to perpetrate illegal mining: let me use this medium to appeal through you to tell those sponsors to desist or face the full wrath of the law.”
According to Dr Alake, the Ministry is committed to establishing a multi-agency task force that will end the activities of illegal miners and their collaborators.
The Minster made it clear that the FG had given illegal miners a 30-day-ultimatum to legitimise their businesses, quit Nigeria or incur the wrath of the law.
According to him, this will help “to streamline and structure the Small-Scale Artisanal Miners for maximum yield to the Federal Government.”
The delegation paid a courtesy call on the Minsiter at the Ministry’s headquarters in Abuja.
Energy
Fuel Scarcity: Govt Yet to Increase Pump Prices – NMDPRA
By Edozie Obasi-Eze
Amidst heightening uncertainties in the domestic petroleum products market characterised by scarcity and irregular pricing, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has declared that there’s no intention to review pump prices upwards.
This was contained in an advisory issued by General Manager, Corporate Communications, NMDPRA, Kimchi Apollo.
He stated that the Nigerian National Petroleum Corporation Limited (NNPCL) had imported PMS with current stock levels sufficient for 34 days.
In an attempt to address panic buying and speculations which have seen price of Premium Motor Spirit (PMS) oscillate between N180-N250 in the Lagos area, Apollo assured that there was enough quantity of the product in the country already.
He said, “Consequently, marketers and the general public are advised to avoid panic buying, diversion of products and hoarding.
“In keeping with the Authority’s responsibilities as outlined in the Petroleum Industry Act (PIA), the Authority assures the public that it would continue to monitor the supply and distribution of petroleum products nationwide, especially during this holiday season.”