March 11, OctaFX – Gold price rose slightly today as deal-making in the sector increased. Over the weekend, it was announced that Newcrest Mining was preparing to pay more than $800 million for New Chris Mining, which is owned by Imperial Metals Corporation.
While this is a small deal, it shows the levels at which miners are going to achieve growth as gold becomes rare and costs to mine increase. This year, Newmont Mining announced that it will acquire Goldcorp for more than $8 billion.
Shortly afterwards, Barrick Gold announced a hostile takeover of Newmont, which would create the biggest gold mining company in the world. This follows the merger of Sibanye and Stillwater in 2016 and last year’s acquisition of Randgold by Barrick Resources.
Gold price technical forecast
The XAUUSD pair moved slightly higher today as traders cheered the new wave of consolidation in the gold-mining sector. The pair is currently trading at $1,296, which is higher than last week’s low of $1,280. This level is along the higher line of the Bollinger Bands.
The Standard Deviation has been rising while the pair is along the 42-day moving average. The pair will likely continue moving up. Alternatively, it could drop to the 50% Fibonacci Retracement level of $1,270.
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