logo-loader
viewGOLD

Rising US dollar pressures gold

gold_ounce350_4dd12d33c2304.jpg

Gold recovered after dropping early in today’s session, but failed to reclaim the US$1,500/oz level under pressure from the resurgent US dollar. The American currency soared to seven week highs against the euro after chairman of the International Monetary Fund Dominique Strauss-Kahn was arrested in the US on attempted sexual assault charges.

Strauss-Kahn played a prominent role in negotiating the bailout deals received by Greece, Ireland and Portugal. His arrest delivered a blow to Europe’s efforts to tackle its debt problems, primarily rescheduling Greece’s debt.

The news triggered a sell-off in equity markets across the globe and boosted safe haven demand. However, traders were opting for the greenback over gold for wealth protection; still, they were reluctant to sell the yellow metal amid uncertainty over Europe’s sovereign debt problems.

Gold held steady at US$1,498/oz. Silver and platinum slipped to US$34.82/oz and US$1,760/oz respectively.

Mining stocks were in decline. Fresnillo (LON:FRES) and Lonmin (LON:LMI) dropped 1 percent.

In the FTSE 250, Hochschild Mining (LON:HOC) and Petropavlovsk (LON:POG) shed 3.7 percent and 2.6 percent respectively. African Barrick Gold (LON:ABG) was down 1.6 percent and Aquarius Platinum (LON:AQP) eased 1.2 percent.

Diversified mining investment company ECR Minerals (LON:ECR) led the sector, soaring 67 percent.

Base metals focused miners weren’t very active today. Eurasian Natural Resources (LON:ENRC) fell 2 percent.

Mineral exploration company focused on gold and uranium Red Rock Resources (LON:RRR) was among the top performers in the sector, rallying 12 percent. Nickel and copper explorer Regency Mines (LON:RGM) added 7 percent.

Quick facts: GOLD

Price: - -

AIM:GOLD
Market: AIM
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. 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...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Revenue guidance from OptiBiotix as it eyes NASDAQ listing

OptiBiotix Health (LON:OPTI) provides a commercial progress update, explaining why in their financials some items are separated. CEO Stephen O'Hara tells Proactive London what's behind his thinking adding that Optibiotix hopes to reach profitability in 2020. News here too on Sweetbiotix and...

8 hours, 14 minutes ago

2 min read