The gold price continues to hover around the $ 1,700 mark. But even though yesterday was like a roller coaster ride, the bulls are gradually squinting back at the $ 1,720 gold range. A breakout would be a first signal that a rally towards $ 1,800 could be underway. Meanwhile, there is good news for gold mine operators. And they come from Mexico.The Mexican government has classified the mining business as essential. The mines can now be opened again step by step. Newmont Goldcorp has given the go-ahead to reopen the Penasquito mine in Mexico. The mine should start up again on May 18. Newmont’s CEO Tom Palmer expects the mine to return to full capacity in about two weeks.
Normality is coming back slowly
The world is currently trying to find its way back to normal step by step. Nobody can say for sure whether and when there will be another wave. Most countries have now classified mining as essential for society and the economy. The industry currently seems to be off the hook. And that means: From June, the corporations should benefit fully from the rise in gold prices. That should ensure a strong cash flow for most groups. Newmont Goldcorp, the world’s largest gold producer, will benefit significantly from gold prices in excess of $ 1,700. The stock remains a shareholder’s favorite among the major gold producers.