Proactive investorsLogo Proactive Investors UK Website

Search field
Additional information
Additional Information
Market: .
Sector: Gold Mining
Epic: GOLD
News: Latest news
Web Site: Gold
Other Articles: 16-03-201016-03-201015-03-2010

RSS - Subscribe to the News Today on Proactive UK ▼

Wednesday March 17, 09:01SmartFocus, Amphion Innovations and National Milk Records confirmed for March 18 Forum

The presentations will start at 6:00pm and finish at approx 7:30pm. After the presentations are complete the directors will also be available to take questions during a free canapé and wine reception.

FULL ARTICLE ►

RSS - Subscribe to the News Today on Proactive AU ▼

Thursday March 18, 12:26Healthcare & Biotech companies to present at "Ultimate Healthcare & Biotechnology Event 2010”

We have a cracking line-up for March 24, as we return to Healthcare & Biotech sector at our One2One Investor Forum. Seats are limited, to avoid disappointment, register now.

FULL ARTICLE ►

RSS - Subscribe to the News Today on Proactive CN ▼

Monday March 15, 09:01China's growth boosting commodity prices

The latest economic figures from China have put pressure on the dollar and boosted a number of high-yielding currencies, including the Australian dollar and the South African rand.

FULL ARTICLE ►
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 27, 2009

Gold producers retreat as Dubai World continues to cast shadow over Global Markets

company news image

The gold price gave back some of its substantial gains today after the yellow metal came under pressure in Asian trading before capitulating when Europe joined the selling frenzy. Futures were last changing hands a $1,170. After holding the $1,190 at the start of Friday’s trading, the gold price shed more than $60 before rebounding to current levels.


Analysts and commentators have generally pointed to profit taking as the cause of the decline. The growing uncertainty in financial markets generally and fluctuations in the forex markets has encouraged many speculators to ‘cash-in their chips’ following gold’s record breaking rally which peaked at $1,195.


Financial markets have been decisively cautious while the US has been celebrating the Thanksgiving holiday.
Both equities and commodities came under pressure after yesterday’s news that state owned Dubai World had delayed its debt repayment obligations. Many economists expect the neighbouring Emirate state of Abu Dhabi to bail out Dubai. However many of the world’s major institutional investors and central banks hold the Emirate state’s sovereign debt and the potential fallout of any default remains unclear.

 

Before the rather subdued end to the week the gold market had been well supported and looked set to break through the key $1,200 level as it notched up eight consecutive ‘up days’.


Bullish gold investors were emboldened by several state banks acquiring gold from the IMF (International Monetary Fund). Earlier this week the IMF confirmed a further sale of its gold. The Sri Lanka central bank bought 10 tonnes of IMF gold for $375 million. Additionally news reports on Wednesday raised speculation that the Indian Reserve Bank may be in the market for more IMF gold.  According to Indian newspaper The Financial Chronicle, India is open to buying more gold from the IMF. Reports suggest that the Reserve Bank of India (RBI) will get the gold if its bid is successful at the price it has offered. However, as yet neither the RBI nor their governor Duvvuri Subbarao has commented on the speculation. It was India’s initial 200 million tonne purchase that took the yellow metal beyond the $1,100 tipping point earlier this month. Since then the gold market rally as hardly looked back recording three consecutive weekly gains, rising almost $100 an ounce.


The gold market will now look to US sentiment this afternoon, although participation is anticipated to be lower than usual as many traders will try extend their holiday weekend. Perhaps some Wall Street traders may plan to make the most of their re-instated bonuses and join the annual hordes of ‘Black Friday’ discount shoppers.


In North America gold stocks were weighed down by falling commodities and weaker equity markets, with many major US gold producer falling at least five percent lower. Australia based Lihir Gold (NASDAQ: LIHR) and major international producer Kinross Gold (NYSE: KGC) were the weakest in the sector, falling 8% and 6% respectively, next was GoldCorp Inc (NYSE: GG) who lost 5.75%.

AngloGold Ashanti (NYSE: AU), Yamana Gold (NYSE: AUY) and Randgold Resources (NYSE: GOLD)    all lost 5.25%, similarly GoldFields (NYSE: GFI) fell 5% this morning.

Newmont Mining Corp (NYSE: NEM) and the world largest gold miner Barrick Gold (NYSE: ABX) slipped 4% lower while Polyus Gold (IOB: PLZL.IL) outperformed the sector to show a marginal decline, losing 1%.

Elsewhere on the New York Stock Exchange, medium sized producers IAM Gold (NYSE: IAG) and Agnico Eagle (NYSE: AEM) also fell sharply, losing 7.5% and 5.5% respectively.

On the American Stock Exchange the downward trend continued with Keegan Resources (AMEX: KGN) and Exeter Resource Corp (AMEX: XRA) among the worst effected as  they both dropped more than 10% each.

Nevsun Resources (AMEX: NSU), Rubicon Minerals (AMEX: RBY) and Eldorado Gold Corp (AMEX: EGO) followed as all three developers slid more than 7% lower. Minefinders (AMEX: MFN) and New Gold (AMEX: NGD) lost more than 5.5%.

In Toronto Timmins Gold Corp (TSX-V: TMM) slipped 6% lower meanwhile Centamin Egypt (TSX: CEE), Victoria Gold Corp (TSX-V: VIT) and Kent Exploration (TSX-V: KEX) fared comparatively well losing just 2% each. Hawthorne Gold Corp (TSX-V: HGC) eased 1% while

Kootenay (TSX: KTN), Lydian Gold (TSX: LYD) and     Bravo Venture Group(TSX-V: BVG) were unchanged from Thursday’s close.

AddThis Feed Button
Register here to be notified of future Gold articles.

Other Gold articles


Other Gold news

More news ►

Investors interested in Gold recently viewed


No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.