GOLD, SILVER & PRECIOUS METALS MARKET WRAP

The price of gold has become one of the dominant themes in global markets over the past couple of years as the financial crisis unravelled. The Gold wrap reports on the latest trends in the price of the precious metal as well as factors influencing the demand for the safe haven asset.

Pdf

Gold rises as French bond sale results support euro

January 16 2012, 4:22pm
Gold rises as French bond sale results support euro

Gold rose today after the results of today’s French debt sale met expectations with the euro zone’s second largest economy raising €8.7 billion, while seeing yields on its two year bonds drop from 0.71 percent to 0.66 percent.

Demand for French notes was boosted by reassuring comments from Moody’s, which reiterated its AAA rating with a stable outlook for France. The comments from Moody’s followed Friday’s downgrade of France and eight other euro zone members by fellow rating agency Standard & poor’s.

Confidence in euro zone debt will be put to a test again tomorrow with the European Financial Stability Facility (EFSF) set to auction off €1.5 billion worth of bills.

The outcome of the auction along with the upbeat comments from Moody’s lifted demand for riskier assets, sending European equities and commodities higher, while curbing demand for safe haven assets such as the US dollar.

The American currency is seen as an alternative investment to gold and usually moves inversely to the yellow metal.

Gold
traded at US$1,642/oz, up US$3 from Friday’s close. Other precious metals moved in the same direction as gold with silver rising 18 cents to US$29.95/oz and platinum advancing US$7 to US$1,494/oz.

Today’s top risers in the sector were:

Jubilee Platinum (LON:JBL)
, up 32 percent at 16.2 pence at midday

Minco (LON:MIO)
, up 9.5 percent at 2.88 pence

Orsu Metals (LON:OSU), up 8.5 percent at 9.75 pence

Caledonia Mining (LON:CMCL), up 7.5 percent at 7 pence

GGG Resources (LON:GGG), up 6 percent at 11.65 pence

The top fallers were:

Alecto Minerals (LON:ALO), down 14.5 percent at 1.5 pence at midday

KEFI Minerals (LON:KEFI), down 8.5 percent at 3.22 pence

ECR Minerals (LON:ECR)
, down 8.5 percent at 1.03 pence

Metals Exploration (LON:MTL), down 6 percent at 11.5 pence

Angel Mining (LON:ANGM)
, down 6 percent at 2.56 pence


Advertisement Register here to be notified of future articles.
UK 100
Latest price: 6,757 (-0.25% Descending)
52-week high: 6,878
52-week low: 6,338
UK 100 - 1 year chart
UK 100 - 1 week chart
Crude Oil
Latest price: 108 (0.00%)
52-week high: 116
52-week low: 104
Gold
Latest price: 1,295 (0.00%)
52-week high: 1,420
52-week low: 1,190
Advertisement

No investment advice

The Company is a publisher. 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.