Rumors of a shift from dollar-denominated oil trading crop up now and then, punishing the greenback and lifting gold. Earlier this week, an article by the U.K.'s Independent alleged that certain Gulf states held secret talks with Russia, China, Japan and France to replace the dollar with a basket of currencies in crude oil trades.
The article, which said the basket would include gold in addition to the euro, Chinese yuan, Japanese yen and a new currency for nations in the Gulf Cooperation Council, was later denied by officials from Gulf Arab states. Two Gulf nations have already shifted from dollar-denominated oil trades, Iraq in 2000, and more recently, Iran in 2007.
The motive behind a possible migration from dollar is clearly political, targeting the swansong of the global dominance of the U.S. Currency. However, experts see the move as long-coming, time-consuming, expensive and one with no obvious business benefits. Nevertheless, the shift is not impossible.
Gold is usually seen as a safe haven in times of greenback uncertainties and volatilities. Gold prices touched an 18-month high of $1,025.80 an ounce on Sept. 17 in New York, after reaching a record $1,033.90 in March 2008. Many experts fear that demand for the precious metal is outpacing supply, positioning a gold miner like Kinross Gold Corp. (KGC) in an interesting spot.
For the most recent second quarter, the company doubled its revenue to a record $598.1 million from year-ago $298.7 million, selling 651,390 gold equivalent ounces, a 97% increase from 330,633 ounces sold last year. Realized gold price was $915 per ounce sold in the quarter compared to $903 per ounce sold in the comparable period last year. The company also reduced costs by 7% or $32 per gold equivalent ounce to $434 from $466 last year.
A Bloomberg report said the company may boost output by about 57% in the next five years, if it moves ahead with current projects under evaluation in South America. Kinross plans to expand three of its producing mines and is also evaluating the possible development of three new projects. The 6 projects may add about 1.3 million ounces of annual output, and cost a combined $3 billion to go into production, the compaany noted.
The gold miner is also assessing acquisition targets, mainly in South America, Russia and North America - regions where the company has existing projects. In 2007, Kinross acquired Bema Gold Corp. for about $3.5 billion, gaining a 50% control of Cerro Casale in Chile - one of the projects being evaluated. The company has said it will not rule out acquisitions of this magnitude.
In the first half of this year, the company produced 1.09 million gold equivalent ounces, up 47% from 0.74 million gold equivalent ounces in the year-ago period. For the full year, Kinross is forecasting production of 2.3 to 2.4 million gold equivalent ounces. Cost of sales per gold equivalent ounce is expected to be about $390 to $420, consistent with previously-stated guidance.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.