Gold has remained range bound so far this week, trading between $1,295 and $1,282 per ounce, without making a decisive move in either direction.
Upward pressures caused by rising tensions in Ukraine and the Middle East appear to be balanced by downward pressure from stronger US economic performance, leaving gold for immediate delivery trading at $1,291 per ounce on Wednesday morning in London.
The share prices of physical gold ETFs are largely unchanged so far this week: the $34bn SPDR Gold Trust (NYSE: GLD.US) ETF is down by 0.4% at $123.87, leaving it up by 6.6% so far this year, while London-listed Gold Bullion Securities (LSE: GBS) has also fallen 0.4% to $123.87 since Monday, leaving it up by 6.7% so far in 2014.
Amara and SolGold slide
Shares in Amara Mining (LSE: AMA) fell by 14% to 16.5p in early trading this morning, after the company reported that it would cease mining at its Kalsaka/Sega Gold mine in Burkina Faso and put operation into liquidation, after one of Amara’s local subsidiaries defaulted on certain obligations.
Amara also announced that its chief executive, Peter Spivey, will leave the business with immediate effect, and will be replaced by chairman John McGloin. Amara’s main focus remains the pre-feasibility study for the Yaoure Gold Project, and the company said this morning that cash remains ring-fenced and available to complete this and will not be affected by the premature closure of the Burkina Faso facilities, which Amara was planning to wind down from the fourth quarter of 2014.
In a separate announcement this morning, Amara announced further drilling results from the Yaoure project in the Côte d’Ivoire, which executive chairman John McGloin said “underline the potential to expand its 6.3 million ounce resource base“.
Former top performer SolGold (LSE: SOLG) fell 9% to 6.5p this morning, after investors were disappointed by the latest drilling results from the company’s Cascabel copper-gold project in Ecuador. After peaking at more than 15p in September 2013, SolGold’s share price has fallen by 25% so far this year as the Cascabel drilling programme has continued.