GOLD,SILVER & PRECIOUS 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.

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Thursday, February 02, 2012

Gold rallies on Bernanke comments

Gold rallies on Bernanke comments

Gold rose after comments from Federal Reserve chairman Ben Bernanke lifted demand for riskier stocks, while dampening the safe haven appeal of the US dollar, an alternative investment to the yellow metal.

During his testimony before the House Budget Committee, Bernanke said the economy has shown signs of improvement. However, the Fed chairman reiterated that the outlook remains cautious, largely due to the economic uncertainty in Europe.

At its latest policy meeting, the Fed decided to keep interest rates at near zero levels until late 2014 to support the recovery, which Bernanke said was yet to enter a “new, stronger phase”.

Earlier in the session, equities on both sides of the Atlantic received support from a bullish jobless claims report from the Department of Labor.

The data showed that initial applications for unemployment benefits dropped 12,000 to 367,000 last week, while expectations were for a smaller decline.

Gold traded at US$1,760/oz this afternoon, up US$17 from Wednesday’s close. Silver rallied 59 cents to US$34.30/oz and platinum added US$12 to reach US$1,629/oz.

Today’s top risers in the sector were:

Central Asia Metals (LON:CAML), up 14.5 percent at 74.61 pence at midday

Norseman Gold (LON:NGL), up 11 percent at 7 pence

Peninsular Gold (LON:PGL), up 9.5 percent at 31 pence

Arian Silver (LON:AGQ), up 6.5 percent at 23.75 pence

Shanta Gold (LON:SHG), up 5.5 percent at 31.75 pence

The top fallers were:

GMA Resources (LON:GMA), down 10 percent at 0.261 pence at midday

Oxus Gold (LON:OXS), down 8 percent at 1.15 pence

Angel Mining (LON:ANGM), down 6 percent at 2.42 pence

Ariana Resources (LON:AAU), down 5.5 percent at 4.5 pence

ECR Minerals (LON:ECR), down 4 percent at 1.14 pence


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Gold
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