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Market: LME
Sector: General Mining - Gold
EPIC: GOLD
Latest Price: $0.00  (0,00%)
52-week High: $39.00
52-week Low: $39.00
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GOLD
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Gold 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.

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Gold Prices Slip Below $1,000 under Pressure from US Dollar, IMF to Reduce Gold Reserves

21st Sep 2009, 12:26 pm Gold Prices Slip Below $1,000 under Pressure from US Dollar, IMF to Reduce Gold Reserves

 

Gold futures broke below $1,000 earlier this morning as forex markets continued the trends of the past few sessions. The gold price has steadily pulled back since last Thursday saw futures reach $1,025, the decline has come as profit taking gripped commodity markets while the US dollar has begun to turn around following a sustained period of weakness.


The Comex December Gold contract fell as low as $996 from the opening price of $1,006, the price has now stabilised just above $1,000. Meanwhile the US Dollar Index has risen by ½% this morning to stand at 77.11, lead primarily by a weakening of both the Euro and Sterling.


News from the International Monetary Fund (IMF) may also weigh down the gold price this week. Over the weekend the IMF announced it would sell an eighth of its reserves to build its liquid assets, in order to provide funding support for the world’s weaker economies as the global recovery emerges at a varied pace. The International Monetary Fund approved the sale of 403.3 metric tonnes of gold.


Subsequent reports suggest the Chinese government may have an interest in buying the bulk of the gold that the IMF is offering. China has been increasing its Gold stockpiles over the past 12 months as they diversify their reserves.


In London this morning, UK listed Gold equities have generally been under pressure following the decline in the commodity price. Major International producer Randgold Resources (LSE: RRS) fell £1.30 to lose almost 3% this morning, Randgold is currently trading at £44.37.


Mid-tier precious metal operator Peter Hambro Mining (LSE: POG) have come under pressure dropping over 4% to trade at £8.80, while dual listed, Canadian based Yamana Gold (LSE: YAU NYSE: AUY) fared slightly better and are relatively unchanged on the day.


In London’s AIM market junior gold equities have also had a generally negative session far today. Fijian operating Vatukoula Gold Mines (AIM: VGM) and West African gold producer Cluff Gold (AIM & TSX: CLF) were among the worst effected junior gold stocks both falling over 6% this morning.


Australian focused Norseman Gold (AIM & ASX: NGL) slipped around 3% today, while Solomon Gold Plc (AIM: SOLG), Avocet Mining (AIM: AVM) and Middle-Eastern based Centamin Egypt (AIM: CEY) all dropped 2%.


Elsewhere very few gold equities gained any ground, among them Uzbekistan focused gold miner Oxus Gold (AIM: OXS) added 2 ½% while Philippine focused explorers Metal Exploration (AIM: MTL) rose 1½%.


Shares in Canadian based junior gold developer Rambler Metals and Mining Plc (AIM: RMM & TSX- V: RAB) have held up, following news that it had extended its footprint in Newfoundland, Rambler remain unchanged on the day despite today’s weak sector.


Similarly Ariana Resources (AIM: AAU), Central China Gold (AIM: GGG) and Pan African Gold (AIM: PAF) were little changed.

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