The price of gold declined this week, ending the period below US$4,550 an ounce.
Its sister metal silver also followed a similar trend, although at one point it briefly reached the US$89 per ounce mark.
The precious metals reaction to the Iran war continues to evolve rapidly. iran Latest peace proposal rejected From the US last weekend, President Donald Trump called the country’s counter-offer “completely unacceptable”.
Since then the tension between the two countries has increased further. vote in the House of Representatives Shows that opposition to the conflict is growing in the US – a resolution calling for an end to US involvement failed, but was the closest vote ever on the war.
The latest US consumer (CPI) and producer price index (PPI) data were also included in the mix.
April CPI was 3.8 percent increase year-on-yearThe fastest growth seen from 2023, and 0.6 percent from last month. Meanwhile, the core CPI, which excludes food and energy categories, rose 2.8 percent year-on-year and 0.4 percent from March.
PPI for April was 6 percent increase year-on-yearThe largest increase since December 2022, and a seasonally adjusted 1.4 percent month-on-month.
The data have raised concerns about higher prices and raised questions about the US Federal Reserve’s path forward – especially with the road is now clear Kevin Wersh will take charge of the central bank in place of Jerome Powell.
Bullet Briefing – Gold, silver stock M&A heats up
Equinox to buy Orla for US$5.1 billion
M&A was in the air in the gold sector this week, with Equinox Gold (TSX:EQX,NYSEAMERICAN:EQX) announcing plans to acquire Orla Mining (TSX:OLA,NYSEAMERICAN:ORLA) in an all-stock deal valued at US$5.1 billion.
The combined company will have an implied market capitalization of US$18.5 billion, and will become the second largest Canadian gold producer. Overall, its annual production is expected to be 1.1 million ounces of the yellow metal.
The transaction with Orla is expected to close in the third quarter of this year.
Elemental signs C$327 million Vizsla royalty deal
The Equinox/Orla deal was not the only M&A activity in the mining sector this week.
Elemental Royalties (TSX:ELE,NASDAQ:ELE) and Vizsla Royalties (TSXV:VROY,OTCQX:VROYF) have entered into a definitive agreement through which Elemental will acquire Vizsla in an arrangement valued at C$327 million.
Vizsla’s flagship asset Vizsla Silver (TSXV:VZLA,NYSEAMERICAN:VZLA) is a 2 to 3.5 percent net smelter return royalty on the Panuco silver-gold project located in Mexico. Elemental CEO David M. Cole said in a press release that it is expected to become a cornerstone of the company’s portfolio.
Panuko is in focus from this year January incident In which 10 people were kidnapped from the project site. Vizsla as Silver latest updates By early April, nine people were confirmed dead, while a 10th was still missing.
Elemental and Vizsla expect the transaction to close in the third quarter.
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