Gold (XAUUSD) Down $0.85 On 4 Hour Chart, And A Link About Heap Leach; Eyes 20 Day Average

Gold Daily Price Recap

The back and forth price flow continues for Gold, which started today off at 1953.42004 US dollars, down 0.15% ($2.95) from the day prior. Relative to other instruments in the metals asset class, Gold ranked 4th since the day prior in terms of percentage price change. Here is a daily price chart of Gold.

XAUUSD

Gold Technical Analysis

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. The clearest trend exists on the 90 day timeframe, which shows price moving up over that time. Interestingly, a trend in the other direction exists on the 30 day timeframe, where price is headed down. This may setup an interesting opportunity for traders looking to buy dips in anticipation of the primary trend resuming. For additional context, note that price has gone up 16 out of the past 30 days. And for candlestick traders, a special treat: there is a pin bar pattern showing up on the charts as well. Rejoice!

Overheard on Twitter

Over on Twitter, here were the top tweets about Gold:

  • 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

  • From _groww:

    #GrowwDigest: Daily Highlights | 14 Sep 2020• Sensex ▼0.25%, Nifty ▼0.21%Top gainers: HCL, TCS, Wipro, Infosys, UPL
    Top losers: Bharti Airtel, Bajaj Finance, Bharat Petroleum, Power Grid Corp, SBIGold price:
    Rs.51,319 per 10gUSD-INR rate:
    Rs.73.42/USD(1/6)

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.