The World Gold Council has released its May 2024 Gold Market + ETF reports, which show while the gold price rose for the third consecutive month and set a new all time high of US$2,427 per ounce, it pulled back to end the month at US$2,348 per ounce.
The price rose 2% in May, a more moderate gain compared to March and April, a likely reflection of profit taking.
The reports revealed that market activity remained supportive in May, with net long managed money positions on COMEX hitting a four-year high and gold ETFs seeing net inflows (US$529 million) for the first time since May 2023.
Australian gold backed ETF flows held stable, with holdings steady at 40.1 trillion and assets under management of US$3 billion.
Anticipating a further pullback in the US dollar, the reports speculate that any prolonged weakness in the dollar should, at a minimum, ease headwinds and provide potential upside for gold over the ensuing months.
That’s good news for upcoming ASX-listed gold juniors, who are welcoming a supportive gold price environment.
Near-term production in a surging gold price environment
Looking to capitalise on the elevated gold price is West Wits Mining Ltd (ASX:WWI, OTCQB:WMWWF) which is working towards ore production from its flagship Qala Shallows project within the Witwatersrand Basin Project in South Africa.
The Qala Shallows project — supported by a comprehensive definitive feasibility study (DFS) — is the first stage of the company’s plans to exploit the Witwatersrand Basin Project’s extensive mineral resource estimate (MRE) of 4.28-million-ounce gold at 4.58 g/t gold.
Positioned strategically within South Africa's Central Rand Goldfield, near Soweto in Gauteng Province, Qala Shallows is poised to be a transformative force, creating more than 1,000 job opportunities in its initial phase.
The Qala Shallows DFS reveals projected gold production of 924,000 ounces at an all-in-sustaining-cost of US$977 per ounce over its 17.7 life-of-mine, with an annual steady-state production of 70,000 ounces, highlighting the project's substantial potential and long-term sustainability.