Gold sank below a key threshold and promptly retraced losses in volatile Wednesday trading following the previous session’s extraordinary decline.
Spot gold tumbled as much as 2.6% to $1,863.15 per ounce on Wednesday, breaking below $1,900 for the first time since late July. The metal then rebounded and gained as much as 2%, to $1,949.40 per ounce.
Gold has enjoyed stronger-than-usual volatility in recent weeks as investors shift cash from risk assets to safe havens. Spot gold surged past $2,000 per ounce to record highs last week as Treasury yields and the US dollar weakened.
Caledonia Mining Corporation plc (LON:CMCL) is a profitable cash generative gold producer with a strong growth profile, Caledonia’s primary asset is the Blanket Mine in Zimbabwe which produced 54,512 ounces of gold in 2018 at an All in Sustaining Cost of $802/oz.