Gold slipped on profit taking after the latest wave of safe haven buying drove the yellow metal to US$1,340/oz earlier in today’s session.
Traders kept pouring money into gold as the unrest in Egypt continued with President Hosni Mubarak clinging to power amid mass protests that have left 100 people dead.
There is a concern that the turmoil in Egypt will disrupt oil shipments through the Suez Canal and spread into other countries in the region, creating more uncertainty. In other news, President of the Bombay Bullion Association told Reuters that India, which is the world’s largest gold consumer, imported 40 tonnes of gold in January, an increase of 18% from a year earlier.
Gold last traded at US$1,327/oz.
Silver and platinum rose to US$28.09/oz and US$1,805/oz respectively.
Mining majors were on the rise today.
Silver miner Fresnillo (LON:FRES) added nearly 4% and platinum miner Lonmin (LON:LMI) advanced 2.3%, while gold producers Randgold Resources (LON:RRS) and African Barrick Gold (LON:ABG) tacked on 1.3% and 1% respectively.
In the FTSE 250, Aquarius Platinum (LON:AQP) and Petropavlovsk (LON:POG) climbed 2% and Hochschild Mining (LON:HOIL) posted a small gain.
Gold and iron ore focused African Aura Mining (LON:AAAM) and Norseman Gold (LON:NGL), which operates Australia’s longest continuously running gold mining operation, were among the top risers in the sector with gains of 8.5% and 7.5% respectively.