Gold rose over 1% on Monday to its highest in more than seven years as dismal U.S. data underscored how badly the Covid-19 pandemic has damaged the world’s top economy, while palladium soared over 9% on better-than-expected demand outlook.
Spot gold was up 1.1% at $1,760.85 per ounce by 0402 GMT, after rising to its highest since Oct. 12, 2012 at $1,763.51. U.S. gold futures gained 0.8% to $1,770.50.
“Markets are pricing in that the (economic) recovery is going to be a little slower than previously expected, and that’s probably going to require an environment of lower rates,” said IG Markets analyst Kyle Rodda, adding that Friday’s “really poor” U.S. economic data was the big catalyst.
Caledonia Mining Corporation plc (LON:CMCL) is a profitable cash generative gold producer with a strong growth profile, Caledonia’s primary asset is the Blanket Mine in Zimbabwe which produced 54,512 ounces of gold in 2018 at an All in Sustaining Cost of $802/oz.