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Gold miners extend rally to longest in a year on metal's surge
[NEW YORK] Gold's rally is putting miners on track for their longest winning streak in more than a year as investors continue to flock to safe havens due to the coronavirus crisis.
A gauge of companies that produce the yellow metal is set for the sixth straight weekly gain, the longest winning stretch since June 2019, according to the index that tracks senior gold miners.
Barrick Gold, the world's second-largest gold miner, said Thursday the company continues to benefit from strong prices even as the pandemic shuts down mines. Companies that sell a share of future output in so-called streaming deals may raise as much as US$3 billion over the coming months, according to Wheaton Precious Metals.
"The recent increased investment demand is driven by concerns over still rising Covid-19 infections in parts of the world, and accommodative monetary policy," Fahad Tariq, a mining equity analyst at Credit Suisse, said in a note earlier this month. The firm said last month that gold's price rally will continue to support cash flows into the gold mining sector.
Gold prices are on the rise amid renewed concerns about economic growth as coronavirus cases top records in parts of the US. Some experts tie the growing size of the outbreak to a cooling economic picture, supporting demand for the metal as a safe haven against uncertainty.
The metal for immediate delivery rose 0.7 per cent to US$1,809.14 an ounce at 11.01 am in New York Friday, set to cap a sixth week of gains. Futures rose 0.6 per cent to US$1,811.40. In other precious metals, silver, platinum and palladium also advanced.