Gold (XAUUSD) Up $14.87 Over Past 4 Hours, Breaks Above 20 Day Average; in an Uptrend Over Past 90 Days

Gold Daily Price Recap

The choppiness in the recent daily price action of Gold continues; to start today, it came in at a price of 1957.05005 US dollars, up 0.8% ($15.55) since yesterday. Out of the 5 instruments in the metals asset class, Gold ended up ranking 4th for the day in terms of price change relative to yesterday. Here is a daily price chart of Gold.

XAUUSD

Gold Technical Analysis

Notably, Gold crossed above its 20 day moving average yesterday. Volatility for Gold has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving up. Interestingly, a trend in the other direction exists on the 30 day timeframe, where price is headed down. If you’re looking to trade the primary trend, this may be a good opportunity to buy dips created by the counter trend. Or to view things another way, note that out of the past 30 days Gold’s price has gone up 17 them.

Overheard on Twitter

Behold! Here are the top tweets related to Gold:

  • From StayOffTheRoad1:

    The Gold Confication Act of ‘33 made it illegal to own more than 5 ounces of gold. Excess has to be sold to the government for its pegged price, about $20/oz.One year later, after they confiscated or “bought” everyone’s gold, they raised the gold price to $35/oz.

  • From AfzalValli:

    #WSBNFULLY FUNDED DRILL PROGRAM 1 – Wishbone II (High grade gold)
    2 – White Mountain High grade Gold Copper SilverFunded with £700k further £300k 2 follow warrantsWe intend to hit exploration hard and take advantage of the elevated gold price and our excellent gold assets

  • From Banker__X:

    Mega BankerX [Thread] collating our last couple of threads all in one place:1. Learn to code
    2. Learn Excel
    3. Develop a killer business plan
    4. Investment banking job links
    5. Grade 12/ first year uni scholarships
    6. How the gold price works
    7. Download free textbooks

For a longer news piece related to XAUUSD that’s been generating discussion, check out:

Heap Leaching: Is it something that could be an alternative to conventional gold extraction?

That was the moment that made me curious enough to realise that this is a serious process and not just for the likes of small-time miners.  And, of course, more reading has made me realise that this is more than a serious operation with the extensive leaching processes in the USA, Chile and Peru.  The Heap Leach process is so advanced that there are practically hundreds of article written about all aspect of the process.  The way they “pile” up the ore is also sophisticated.  The copper players in Chile, the worlds largest copper mine, the Escondida Mine has a leach pad for the sulphide ores and another for the oxide ores….To give some context of what I mean by a giant mine, the photo below is that of the Escondida Copper Mine.  Imagine the low-grade nature that is analogous with Porphyry deposits and the associated large amount of ore that is treated with a Heap Leach process.  In some literature, the Heap Leach process is also described as being more environmentally friendly than traditional mineral processing methods….Heap leaching is one of the oldest and the most traditional mining process used to extract valuable metals from specific minerals….Ultimate recovery of the target mineral can range from 30% of contained run-of-mine dump leaching sulfide copper ores to over 90% for the ores that are easiest to leach, some oxide gold ores….Oxide ore, 4% of recoverable copper, is crushed, agglomerated and then acid leached in large heaps, and the copper is recovered from the leach solutions as copper cathode in a solvent extraction/electrowinning (SX/EW) plant….This has been an interesting article to write as there is more to the topic than I realised.  Although I am not in the mining world, the whole topic is intriguing and shows that perception can be very deceiving.  I think most people who read or invest in this industry are in the same situation.  We know enough to be dangerous is a phrase I use to say when we know just enough to make a fool of ourselves.  In a simple way, Heap Leach works really well for ores that are oxide in nature and are permeable.  The way the pile is constructed or rather the design of the leach pad is the next most important aspect.  Recovery is normally lower than your conventional treatment methods, but the cost, the capital cost of the process is also significantly lower.