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 prices climb after EU treaty

January 31 2012, 4:57pm
Gold prices climb after EU treaty

Gold prices edged higher today after the EU reached an agreement to tighten fiscal discipline within the union by imposing automatic fines on countries that breach their budget deficit targets.

The EU countries also agreed to set up a €500 billion permanent bailout fund.

The deal was signed by all EU members with the exception of Britain and the Czech Republic.

Europe’s fiscal pact along with upbeat statements from Greek Prime Minister Lucas Papademos, who said “significant progress” has been made in the debt ridden nation’s negotiations with its private bondholders, reduced demand for the safe haven US dollar.

Gold is seen as an alternative investment to the US dollar and tends to move inversely to the greenback.

In addition, oil futures surged today, boosting the yellow metal’s appeal as an inflation hedge.

Demand for oil was driven by reports that German Chancellor Angela Merkel has asked the world’s second largest energy consumer China to reduce its dependence on oil imports from Iran, which is accused of illegally developing a nuclear weapon.

Gold
traded at US$1,734/oz this afternoon, up US$4 from Monday’s close. Silver declined 21 cents to US$33.29/oz and platinum dropped US$8 to US$1,601/oz.

Today’s top risers in the sector were:

Shanta Gold (LON:SHG)
, up 10.5 percent at 28.75 pence at midday

GGG Resources (LON:GGG)
, up 10 percent at 18.44 pence

Orsu Metals (LON:OSU)
, up 10 percent at 11 pence

Vatukoula Gold Mines (LON:VGM)
, up 7.5 percent at 91 pence

Minco (LON:MIO), up 7 percent at 3.35 pence

The top fallers were:

Caledonia Mining (LON:CMCL)
, down 9 percent at 7.5 pence at midday

Solomon Gold (LON:SOLG), down 6.5 percent at 10.5 pence

Triple Plate Junction (LON:TPJ), down 5.5 percent at 4.34 pence

Greatland Gold (LON:GGP)
, down 4 percent at 1.25 pence

Kolar Gold (LON:KGLD), down 3.5 percent at 13.27 pence


Advertisement Register here to be notified of future articles.
UK 100 - 1 year chart
UK 100 - 1 week chart
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.