Proactive investorsLogo Proactive Investors UK Website

Search field

1 year chart

digital-look imported chart image

1 day chart

digital-look imported chart image
Epic & Msn data
Epic GOLD
Time:
Mid Price: 1106.25
Change Today: 2.25 Ascending
Change % Today: 0.20 Ascending
Fifty Two Week High: 1212.50
Fifty Two Week Low: 870.25
Market Capital: 0.00
Period & price data
Period Price
Now: 1106.25
3 Months ago:
6 Months ago:
1 Year ago:
Additional information
Additional Information
Market: LME
Sector: General Mining - Gold
Epic: GOLD
News: Latest news
Web Site: GOLD
Other Articles: 13-03-201013-03-201013-03-2010

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.

Monday, November 09, 2009

Gold tops US$1,110 per ounce, gold equities respond

company news image

The Gold prices have risen progressively throughout the morning in electronic trading, with futures approaching an intraday high of $1,110 earlier this morning, as the US Dollar continues to come under pressure.

Throughout most of last week gold made substantial gains following a series of fundamental and forex related developments. On Wednesday gold continued to test new territory and hit yet another all time high of $1098/ounce. After months of continual gains the gold price now stands 23% higher than at the turn of the year.

On Tuesday news that India had shelled out $6.7 billion to buy 200 tonnes of gold from the IMF sparked off speculation that none of the proposed 400 tonnes of gold up for sale by the IMF would actually hit the market, instead being snapped up by emerging economies keen to diversify their investments out of US dollars.

Many commentators suggest that the IMF’s deal with India is significant for two key reasons. Firstly in a tangible sense, the directly agreed sale has alleviated downside pressures in the physical market. Some investors feared that such a sale on the open market could have sparked wider selling to challenge any further rally. Analysts have suggested the potential for a ‘bidding-war’ between developing central banks such as China and Russia for the remaining 200 tonnes of IMF gold-sale.

Secondly market commentators have highlighted the symbolism of the purchase. Many suggest that it is yet another indication that the world’s emerging economies are losing faith in the US Dollar for their respective financial reserves.

Over the past few months several reports have highlighted the growing scepticism over Dollar’s future role in the global economy. In September, reports suggested that certain oil producing states explored a move away from a Dollar pricing mechanism in the Crude Oil market. Similarly a number of Finance Ministers have been reported to have questioned the effectiveness of the Dollar as a global reserve currency.

Some argue that the US Dollar and US Government Bonds are becoming less relevant to International institutions, both in the investment industry and the wider economic organisations. Undoubtedly the US Dollar’s role in the global economic structure has been under the microscope, however at such an early stage many feel as though the line between political posturing and the potential for real practical measures will remain blurred for some time.


Gold equities advanced in London.

International gold miner Randgold Resources (LSE: RRS) rose 2%, similarly mid-tier miner gold miner Petropavlovsk (LSE: POG) tacked on 3.3%.


Canada based junior gold developer Rambler Metals and Mining Plc (AIM: RMM) led the juniors with a 13% rally. Argentina focused gold explorer Patagonia Gold (AIM: PGD) and Uzbekistan focused gold miner Oxus Gold (AIM: OXS) followed with gains of over 7%.


Western Australia operating Norseman Gold (AIM & ASX: NGL), Fiji focused gold miner Vatukoula Gold Mines (AIM: VGM) and South American based explorer Mariana Resources (AIM: MARL) added more than 6%, while Philippines focused gold producer Medusa Mining (AIM&ASX: MML) and Africa focused gold deposit developer Cluff Gold (AIM & TSX: CLF) advanced 5.5% and 4.5% respectively.


African focused nickel and gold exploration and development junior Nyota Minerals (ASX&AIM: NYO), Tajikistan operating gold miner Kryso Resources (AIM: KYS) and Africa focused gold miner Pan African Resources (AIM: PAF) followed with gains of over 3%.

NewsNow icon AddThis Feed Button
Register here to be notified of future GOLD articles.

Other GOLD articles

More 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.