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Sector: Gold Mining
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Other Articles: 09-03-201008-03-201025-02-2010

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Friday March 12, 09:50Baobab Resources resumes drilling at Tete iron-vanadium-titanium project

Shares in the company were lifted by the news it started a 12,000 metres scout drilling campaign at its project in Mozambique, with constant updates expected in the next few months.

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Friday March 12, 01:39Circadian Technologies to present at Ultimate Healthcare & Biotechnology Event, March 24

Robert Klupacs, CEO of Circadian Technologies, recommended by US Investment Bank Merriman Curhan Ford, as "the Cheapest Little Antibody Company on the Planet" will present in Sydney.

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Friday March 12, 08:51White Energy enters coal deal with China Guodian Group

White Energy Company (ASX: WEC; OTCQX: WECFY) has inked a non-binding heads of agreement with state owned Guodian Inner Mongolian Energy Sources Co Limited to develop a coal upgrading [...]

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Gold

Gold

Gold is a chemical element with the symbol Au and the currency code is XAU. It is a highly sought-after precious metal which, for many centuries, has been used as money, a store of value and in jewelry. The metal occurs as nuggets or grains in rocks, underground "veins" and in alluvial deposits. Modern industrial uses include dentistry and electronics, where gold has traditionally found use because of its good resistance to oxidative corrosion.
Friday, November 06, 2009

Gold futures burst through US$1,100/ounce

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As the week draws to an end the yellow metal looks as though the remarkable rally may reach a climax before the end of the day. Front month Gold futures crashed through $1,100 and look set to end the week almost US$60/ounce higher than this time last week.


In the latest push the gold price advanced a further $10 today, as non-farm payroll data pressured the US Dollar. The U.S. unemployment rate increased to 10.2% in October - the first time unemployment has breached 10% since 1983.


Throughout the week gold made substantial gains following a series of fundamental and forex related developments. On Wednesday gold continued to test new territory and hit yet another all time high of $1098/ounce. After months of continual gains the gold price now stands 23% higher than at the turn of the year.


On Tuesday news that India had shelled out $6.7 billion to buy 200 tonnes of gold from the IMF sparked off speculation that none of the proposed 400 tonnes of gold up for sale by the IMF would actually hit the market, instead being snapped up by emerging economies keen to diversify their investments out of US dollars.


Many commentators suggest that the IMF’s deal with India is significant for two key reasons. Firstly in a tangible sense, the directly agreed sale has alleviated downside pressures in the physical market. Some investors feared that such a sale on the open market could have sparked wider selling to challenge any further rally. Analysts have suggested the potential for a ‘bidding-war’ between developing central banks such as China and Russia for the remaining 200 tonnes of IMF gold-sale.


Secondly market commentators have highlighted the symbolism of the purchase. Many suggest that it is yet another indication that the world’s emerging economies are losing faith in the US Dollar for their respective financial reserves.


Over the past few months several reports have highlighted the growing scepticism over Dollar’s future role in the global economy. In September, reports suggested that certain oil producing states explored a move away from a Dollar pricing mechanism in the Crude Oil market. Similarly a number of Finance Ministers have been reported to have questioned the effectiveness of the Dollar as a global reserve currency.


Some argue that the US Dollar and US Government Bonds are becoming less relevant to International institutions, both in the investment industry and the wider economic organisations. Undoubtedly the US Dollar’s role in the global economic structure has been under the microscope, however at such an early stage many feel as though the line between political posturing and the potential for real practical measures will remain blurred for some time.
What is certain however is gold’s persistent appeal in this uncertain time for the US Dollar. The current high represents a 23% rise over the year to date.


Gold equities advanced across the Board in North America as the gold price look set to close the week substantially higher.


Nevsun Resources (AMEX: NSU) reversed Thursday’s losses to rise the most on AMEX, the African focused gold company was among the strongest performers rising more than 6% on Friday to trade at  $3.00 per share.

IAM Gold (NYSE: IAG) advanced over 4.5% meanwhile Agnico Eagle (NYSE: AEM), Barrick Gold (NYSE: ABX) and New Gold (AMEX:NGD) rose over 3% higher.

Canadian based Yamana Gold (NYSE: AUY, LSE: YAU) climbed 2.5% after posting similar gains in Europe. South American focused Exeter Resources (AMEX: XRA, TSX: XRC), dual listed Eldorado Gold (TSX: ELD; AMEX:EGO), Keegan Resources (AMEX: KGN) and Mexico focused junior producer Minefinders (AMEX: MFN) all advanced more than 2% in a strong market.

Randgold Resources (NYSE: GOLD, LSE: RRS) was also positive on the day rising 1.5%, elsewhere Ontario based Rubicon (AMEX: RBY) also rose fractionally, rising just a few pence per share.

In Toronto, Timmins Gold (TSX-V: TMM) was perhaps the best performer across North America as the junior gold stock surged more than10% top trade at CAD$1.16. Multi listed gold stock Centamin Egypt (LSE: CEY, ASX: CNT, TSX: CEE) and Victoria Gold Corp (TSX-V) were both stronger rising 3%.

Hawthorne Gold Corp (TSX: HGC) on the other hand, moved in the opposite direction, dropping 5%.

In the OTC market, low-cost emerging gold producer Gold Resource Corp (OTCBB: GORO) advanced 3.5% to trade at $8.95.

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