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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Tuesday, February 07, 2012

Gold rebounds after dipping below $1,710

Gold rebounds after dipping below $1,710

Gold prices rallied this afternoon as bargain hunters stepped in after the yellow metal dipped below US$1,710. The yellow metal dropped yesterday and early in today’s session as the euro softened against the US dollar, which is seen as an alternative investment to gold.

The surge in the US dollar came as Greek policymakers failed to reach a deal to impose further austerity measures and secure more financial aid from the EU, which is necessary to keep it solvent.

Talks between Prime Minister Lucas Papademos and other leaders of the ruling coalition are currently ongoing.

Media reports suggested that the lawmakers were inching closer to an agreement on budget reforms, however, there have been no indications from lawmakers that a deal is imminent.

Traders dumped the euro amid the uncertainty, while seeking refuge in the safe-haven US dollar, leading to the decline in gold prices.

Gold traded at US$1,736/oz, up US$17 from Monday’s close. Silver rose 20 cents to US$33.88/oz and platinum tacked on US$25 to reach US$1,636/oz.

Today’s top risers in the sector were:

KEFI Minerals (LON:KEFI), up 20.5 percent at 3.95 pence at midday

Metals Exploration (LON:MTL), up 10.5 percent at c13.41 pence

Central Rand Gold (LON:CRND), up 4 percent at 1.13 pence

Orsu Metals (LON:OSU), up 3 percent at 12.25 pence

The top fallers were:

Alecto Minerals (LON:ALO), down 12.5 percent at midday

Greatland Gold (LON:GGP), down 7.5 percent at 1.13 pence

Angel Mining (LON:ANGM), down 7 percent at 2.12 pence

GMA Resources (LON:GMA), down 5.5 percent at 0.245 pence


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Gold
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