QMX Gold Corp. (fka QMXGF)

[the cork]

1390.20 - Gold May Advance as Drop
From Record Price Stokes Demand From Investors
By Nicholas Larkin and Sungwoo Park - Dec 9, 2010 3:47 AM PT

Gold may climb in London as a two-day slump from an all-time high boosts demand from physical traders and investors.

Gold slid 2.9 percent the previous two days after reaching a record $1,431.25 an ounce on Dec. 7. The dollar gained against the euro today before reports that economists said will show U.S. initial jobless claims fell and consumer confidence improved. Gold often moves inversely to the dollar.

“We’re seeing a lot of physical demand out of Asia,” said Bernard Sin, head of currency and metal trading at bullion refiner MKS Finance SA in Geneva. “People are happy to buy here. There’s still a lot of concern in the euro zone and the U.S.”

Immediate-delivery bullion added $2.68, or 0.2 percent, to $1,384.75 an ounce at 11:22 a.m. in London. The metal for February delivery was 0.2 percent higher at $1,385.50 on the Comex in New York.

Bullion fell to $1,382 an ounce in the morning “fixing” in London, used by some mining companies to sell output, from $1,385.50 at yesterday’s afternoon fixing.

Gold has jumped 26 percent this year, heading for the 10th straight annual gain, after governments spent trillions of dollars and kept borrowing costs low to boost economies hurt by the most severe global recession since World War II. Europe’s debt woes and investor demand for an alternative to currencies have supported precious metals.

Federal Reserve policy makers meet on Dec. 14 to discuss a potential plan to extend Treasury purchases to support the economy. U.S. President Barack Obama this week agreed to extend tax reductions to boost growth, a measure which may widen the $1.3 trillion budget deficit.

Assets Fall

“There remains some demand to buy on dips after a drop in the past couple of days,” said Lee Joon, a senior trader at Woori Futures Co. in Seoul. “We can hardly say gold’s rally is over. The factors that have driven up gold prices such as an asset for wealth protection and an alternative to a weaker dollar are still there.”

Gold assets in exchange-traded products fell 3.38 metric tons to 2,097.98 tons yesterday, according to data compiled by Bloomberg from 10 providers. Holdings reached a record 2,104.65 tons on Oct. 14.

Silver for immediate delivery in London rose 0.4 percent to $28.5075 an ounce, after reaching $30.7025 on Dec. 7, the highest price since March 1980. The metal is up 69 percent this year and reached an all-time high of $50.35 in New York in 1980, a year after the Hunt brothers tried to corner the market.

Palladium gained 2.1 percent to $742.10 an ounce. It climbed to $779.10 on Dec. 3, the highest price since April 2001. Platinum was little changed at $1,685.20 an ounce.

Platinum ETP holdings jumped 0.94 ton to 35.76 tons yesterday, the highest amount since at least February, data compiled from three providers show. Palladium assets gained 1.94 tons to 67.44 tons, also the highest amount since at least February.

http://www.bloomberg.com/news/2010-12-09/gold-gains-after-decline-from-record-spurs-demand-silver-palladium-rise.html