Wishbone Gold hit sales target in December as gold prices rise

Precious metals trading firm Wishbone Gold hit its sales target in December as the price of gold rose in the wake of political and economic uncertainty in Europe and the US in 2016.

The Dubai-based company experienced peak trading in December 2016 with 105 kilos committed and sold, while it hits target of exceeding 25 kilos per week by end of last year.

The safe haven metal has been rising since June’s Brexit vote in Britain and Donald Trump’s surprising US electoral victory in November.

On Wednesday, the yellow metal hit a three-month high of £1,244.67 per ounce and at 0708 GMT on Thursday spot gold slipped 0.1% to $1,240 per ounce.

However, the company said that while volumes were good last year, margins were under pressure due to changes in India’s import rules which provides a premium for gold shipped to, and processed, in certain economic zones.

Early estimates suggest that India remains the largest buyer of gold in the world followed by China, which is also the world's largest producer.

The AIM-listed company is looking at new opportunities at its subsidiaries in Peru and Chile with developments in Honduras and Ghana. Representatives of the company will also be making a trip to Ghana later in February to review existing gold projects.

For 2017, the company is continue with measures that will cement ties with suppliers through equipment purchases.

Chairman and chief executive Richard Poulden said: "Overall this has been a transformative and successful year for Wishbone. The gold market remains extremely strong in volume terms which makes us believe that the oft quoted decline in production is failing to monitor the small producers which is our target supplier market.

“The traffic is inexorably east with small premiums over the world spot price appearing from time to time in India and Hong Kong."

Shares in Wishbone Gold were down 11.25% to 0.732p at 1041 GMT.