www.gold.org
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.
Gold Markets Stable as Investors Expect Dollar To Remain Weak
Commodity markets have been generally quiet this morning, gold futures are relatively unchanged as we approach lunchtime in London. Although gold slipped lower to trade around $1,008, futures have gained momentum as the session has progressed. The December Comex contract most recently changed hands just below $1,016, nearing an intraday high.
Both the gold market and the US Dollar are maintaining this week’s range, the dollar has weakened slightly against higher-yielding currencies as investors move away from the greenback. Yesterday’s comments from the US Federal Reserve led analysts to expect that rates will remain low in the long term.
This most recent development further adds to the perceived investment case for gold.
In London this morning, UK listed gold equities have had mixed fortunes. Major international gold producer Randgold Resources (LSE: RRS) rose over 1%, while Canadian based Yamana Gold (LSE: YAU) and the newly renamed mid-tier precious metal operator Petropavlovsk Plc (LSE: POG), formerly Peter Hambro Mining, both dropped 1%.
In London’s AIM market a few junior gold equities made positive starts to the session although generally the trend was lower.
Chinese mineral exploration company Central China Gold (AIM: GGG) led the junior sector, rising almost 7%. European Goldfields (AIM: EGU) gained almost 5%.
South American based explorer Patagonia Gold (AIM: PGD) was among the worst performing junior gold stocks, falling 7½%. Uzbekistan focused gold miner Oxus Gold (AIM: OXS) dropped 4% this morning, While Ariana Resources (AIM: AAU) continued a mixed week, slipping almost 3%.
Meanwhile dual listed, Philippines focused Medusa Mining (AIM & ASX: MML) traded lower, losing 5p per share. Fellow Asian based gold producer Avocet Mining (AIM: AVM) was also weaker, easing around 4.5 % by lunchtime.
Shares in Australia focused Norseman Gold (AIM & ASX: NGL) were also negative today, dropping 3%.
Algeria focused GMA Resources (AIM: GMA) were unmoved on the day.
