By Ranjeetha Pakiam
Gold’s rally is set to endure, with the U.S. presidential election seen as the next big catalyst for prices, according to a producer whose shares have almost doubled this year as financial-market turmoil, slowing growth and Britain’s vote for Brexit pumped up bullion.
“The overall trend is up,” Bill Beament, managing director at Northern Star Resources Ltd., said on a conference call on Wednesday after the Australian company reported record cash flow. The U.S. vote will have more of an impact on bullion than the U.K. referendum, according to Beament.
Gold has rallied 25 percent this year as investors boosted holdings, the Federal Reserve failed to add to last year’s rate rise and central banks in Europe and Japan embraced negative borrowing costs. The International Monetary Fund has scrapped its forecast for a pickup in global growth, citing Brexit. On Tuesday, Donald Trump was formally nominated as the Republican presidential candidate, and is set to face the Democrat’s Hillary Clinton on Nov. 8.
“It’s a longer-term trend heading upward because of what’s happening with the global economies around the world, it’s positive for gold,” said Beament. The Subiaco, Western Australia-based company operates five gold mines, according to its website, and sales in the 2016 financial year were 561,153 ounces, near the top of its guidance of 535,000 to 570,000 ounces.