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Copper Gains in Asia as Falling Dollar Boosts Metals Investment
Nov. 25 (Bloomberg) -- Copper advanced for the third time in four days as a decline in the dollar increased the appeal of industrial metals as alternative investments.
London copper has more than doubled this year while the Dollar Index has shed 7.8 percent as policy makers worldwide cut interest rates to revive economies. The dollar declined to a seven-week low against the yen today after minutes of the Fed’s latest meeting released yesterday showed officials refrained from voicing concern over the greenback’s recent decline.
“The Fed meeting minutes caused the dollar to go down again” which supports metal prices, analysts led by Tan Wentao at HNA Topwin Futures Co. said in an e-mailed report.
Copper for delivery in three months on the London Metal Exchange gained as much as 1.2 percent to $6,955 a metric ton, and traded at $6,954 at 3:08 p.m. in Singapore. The March- delivery contract rose as much as 1.2 percent to $3.1810 a pound on the Comex division of the New York Mercantile Exchange.
February-delivery copper on the Shanghai Futures Exchange rose as much as 1.6 percent to 54,730 yuan ($8,015) a ton and ended the day at 54,680 yuan.
The dollar fell to a one-week low against the euro after a Japanese report showed the nation’s exports dropped at the slowest pace in a year as government spending worldwide boosted demand. It was at $1.50 per euro from $1.4968 in New York yesterday.
Among other LME-traded metals, aluminum climbed 0.6 percent to $2,037 a ton, zinc gained 1.2 percent to $2,263.25 a ton, and lead added 1.6 percent to $2,370 a ton. Nickel was up 0.6 percent at $16,855 a ton, while tin rose 0.8 percent to $15,100 a ton.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a_SQ2R5RhT5Y
Gold Sets New Record, 1184.70 - on Dollar Drop, Report India May Buy More
Nov. 25 (Bloomberg) -- Gold climbed to the highest price ever as the dollar’s slump deepened and on a report that India may buy more bullion for its central-bank reserves.
Gold reached a record $1,184.70 an ounce and has rallied 12 percent since Nov. 2, after India said it bought 200 metric tons from the International Monetary Fund. The country, the world’s largest gold consumer, may buy more from the IMF, the Financial Chronicle reported. The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, fell to a 15-month low.
“There is a lot of central-bank buying, hedge-fund buying and gold is obviously getting to $1,200 an ounce before the end of the year,” David Lee, a trader at Heraeus Precious Metals Management in New York, said in a telephone interview.
Gold futures for February delivery climbed $14.30, or 1.2 percent, to $1,181.70 at 10:47 a.m. on the New York Mercantile Exchange’s Comex division. Up for a ninth straight session, the most-active contract is headed for the longest rally since August 1982.
“Funds and central banks around the world are nervous about the future of the U.S. dollar and the world economy, and that’s why they are buying gold,” Lee said by e-mail. “We’ve reached ‘irrational-exuberance’ levels on many commodities,” including gold and copper, he said.
“Central-bank buying has been one of the main factors of this recent rally,” said Peter Fertig, the owner of Quantitative Commodity Research Ltd. in Hainburg, Germany. “The weaker dollar is driving commodities higher.”
Spot Gold
In London, gold for immediate delivery advanced $10.64, or 0.9 percent, to $1,180.04 an ounce after touching a record of $1,182.95. Prices may reach $1,200 next week, Fertig said.
“Gold is in uncharted territory as it continues to go ballistic,” Ralph Preston, a Heritage West Futures Inc. analyst in San Diego, said by e-mail.
“With today’s push over Monday’s high, look for residual momentum to carry prices to $1,200 an ounce before month’s end, which represents the next psychological stop on this runaway bull train,” Preston said. “I don’t see a bubble. I see a changing world order, and gold is a reflection of that change.”
The metal rose to a record $1,179.75 an ounce in the London afternoon “fixing,” from $1,176.50 in the morning fixing. Some mining companies base output sales on the fixings, which have climbed 36 percent this year.
Overtaking Russia
An additional purchase of IMF gold by India would make its stockpile the world’s eighth-largest, overtaking the Netherlands and Russia, according to figures from the producer-funded World Gold Council. Reserve Bank of India Governor Duvvuri Subbarao declined to comment on the Financial Chronicle report, which didn’t say where it got the information.
“Actions from central banks are very important at the moment,” said Eugen Weinberg, an analyst at Commerzbank AG. “The purchase from India was like a seal of prices above $1,000 an ounce. Also, other central banks are buying gold.”
The central banks of Russia and Sri Lanka have acquired gold recently, prompting analysts at Bank of America Merrill Lynch, Societe Generale and Barclays Capital to forecast more such purchases. Governments are the biggest bullion holders. Mauritius bought 2 tons of gold from the IMF last month for $71.7 million after India’s $6.7 billion purchase.
The IMF, which set out two months ago to dispose of one- eighth of its gold reserves, still has more than 200 tons to sell. It will do so on a “first-come, first-served” basis, Andrew Tweedie, head of the fund’s finance department, said in a Nov. 20 interview.
Central-Bank Demand
“The additional stimulus for gold is the increased demand emerging from central banks, who are now keen to diversify away from the falling value of dollar reserves,” said Mark Pervan, a commodity strategist with ANZ Banking Group Ltd. in Sydney.
Bullion typically moves inversely to the U.S. currency. The dollar index slid as much as 0.9 percent today after Federal Reserve officials described this year’s decline as “orderly.”
Gold held by SPDR Gold Trust, the biggest exchange-traded fund backed by the metal, increased for a second day yesterday to 1,122.37 tons, the most since June 29. The fund’s holdings reached a record 1,134 tons on June 1.
“Speculators betting on higher prices have a very good argument on their side,” Weinberg said in a Bloomberg Television interview. “It’s the weak dollar, the possibility of longer-term inflation, and also actions from central banks. It’s definitely investment demand that is pushing prices higher.”
Scrap Sales
The rally has pushed the 14-day relative strength index for futures above the level of 70 viewed by some investors and analysts who follow technical charts as a sign that prices may soon fall. Today’s reading topped 80.
“Technically, gold remains overbought,” Walter de Wet, a London-based Standard Bank Ltd. analyst, said today in a report. “We have seen some scrap metal coming to the market at current levels, but still not enough to offset buying.”
Among other metals traded in New York, silver futures for March delivery gained 18.6 cents, or 1 percent, to $18.68 an ounce. Platinum for January delivery climbed $27.50, or 1.9 percent, to $1,471.30 an ounce, after touching a 14-month high of $1,482. March palladium rose 0.6 percent to $373.20 an ounce.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aPcstIC7bnkM
Zinc, aluminum, lead, nickel and tin fall.
Copper Falls From 14-Month High as Firming Dollar Curbs Demand
Nov. 24 (Bloomberg) -- Copper prices fell from a 14-month high as the dollar steadied, eroding demand for raw materials as alternative investments.
The U.S. Dollar Index, a six-currency gauge of the greenback’s value, rose as much as 0.5 percent, heading for a third gain in four sessions. The rally made dollar-priced metals more costly for traders with other monies. Prices also fell as weaker U.S. economic data and rising stockpiles signaled slowing demand for the metal used in pipes and wires.
“We’re trading with the dollar today,” said Matthew Zeman, a LaSalle Futures Group trader in Chicago. “We could start to see a bigger pullback in copper with inventories piling up and general demand concerns.”
Copper futures for March delivery fell 1.85 cents, or 0.6 percent, to $3.1435 a pound on the New York Mercantile Exchange’s Comex division. Yesterday, the metal touched $3.204, the highest price for a most-active contract since Sept. 23, 2008.
The U.S. economy expanded at a 2.8 percent annual rate in the third quarter, less than estimated last month, the Commerce Department said. Consumer spending, which accounts for about 70 percent of the economy, rose at a 2.9 percent pace in the quarter, compared with 3.2 percent forecast by economists.
Rising Stockpiles
Inventories of copper monitored by the London Metal Exchange rose for a 16th day to 429,650 tons, up 1.1 percent from the previous day and the highest level since April 23. Stockpiles have surged 67 percent from this year’s lowest level, reached on July 14.
Copper prices have more than doubled this year as the dollar index fell 7.7 percent and shipments into China surged.
A stronger dollar and concern that the global economic recovery may stumble will weaken commodity demand in the first six months of next year, Standard Chartered Plc said.
“We expect prices to lose momentum in the first half on dollar strength and faltering growth expectations,” Helen Henton and other Standard Chartered analysts said in a report.
On the LME, copper for three-month delivery fell $76, or 1.1 percent, to $6,870 a ton ($3.12 a pound). Among other metals for three-month delivery, zinc, aluminum, lead, nickel and tin fell.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=asgEysqhlb0c
Dollar Drop, Gold Gains, Investors Demand Hard Assets
Nov. 24 (Bloomberg) -- Gold rose for an eighth consecutive session in New York on speculation that the dollar may fall further and central banks and investors will buy more bullion as an alternative investment.
Futures reached a record $1,174 an ounce yesterday as the U.S. Dollar Index fell the most in two weeks and Russia’s Bank Rossii said it bought more gold in October. The index is down 7.6 percent this year after the Federal Reserve cut its key lending rate to a record low in December and kept it there. Holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, rose to the highest level since June.
“When the Fed repeatedly says that the rates will remain low, that means the dollar will weaken and gold will rise,” said Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois, and a gold trader for more than three decades. Still, “it’s very possible that it will decline, short term.”
Gold futures for December delivery gained $1.10, or 0.1 percent, to $1,165.80 an ounce on the New York Mercantile Exchange’s Comex division, after earlier rising as much as 0.6 percent. The most-active contract is up 32 percent this year, heading for the best annual performance since 1979. Gold for February delivery gained $1.20 to $1,167.40 an ounce.
After the close of floor trading, the metal added to its gains as comments from the Federal Reserve weakened the dollar and fueled concern that inflation may accelerate.
Fed officials said record-low interest rates might fuel “excessive” speculation in financial markets or an “unanchoring” of stable inflation expectations, according to minutes of their Nov. 3-4 meeting released today.
Rising Demand
In London, gold for immediate delivery gained $3, or 0.3 percent, to $1,169.10 an ounce at 8:31 p.m. local time.
Gold “is likely to find further investment demand in the coming session following the 3.9-ton increase in the SPDR ETF,” James Moore, an analyst at TheBullionDesk.com in London, said in a report. “Gold has found good support around the $1,160 level.”
The dollar index, a six-currency gauge of the greenback’s value, was little changed. The measure touched a 15-month low on Nov. 16.
“The dollar is weak and that is supporting” gold, Miguel Perez-Santalla, a vice president of sales at Heraeus Precious Metals Management in New York, said in a report. “Gold attempted to reach the $1,200 level yesterday and failing, it dropped off, but the market sees these drops as opportunities to buy.”
Central-Bank Buyers
The International Monetary Fund, which set out to sell one- eighth of its gold reserves earlier this year, is trying to complete the process as soon as possible, said Andrew Tweedie, the head of the IMF’s finance department. Earlier this month, India said it bought 200 metric tons from the IMF. Mauritius purchased 2 tons from the lender. Along with Russia’s central bank, Sri Lanka also has been buying gold.
“The investment case for gold has become increasingly compelling,” Dan Smith, an analyst at Standard Chartered Plc, said in a report. The metal will average $1,150 an ounce next year, including $1,300 in the fourth quarter, he said.
“There is definitely accumulation going on, whether by central banks or high-net-worth individuals, so we can see the gold price is going to carry on moving higher, but that doesn’t mean that we’re not going to see consolidation or pullbacks,” David Baker, a managing partner at Baker Steel Capital Managers, said in a Bloomberg Television interview.
Gold Holdings
The rally has pushed London gold’s 14-day relative strength index above the level of 70, which is viewed by some investors and analysts who follow technical charts as a sign that the price may soon fall. Today’s reading was about 80.
Holdings in the SPDR Gold Trust expanded yesterday to 1,121.46 tons, the most since June 29. The fund’s holdings reached a record 1,134.03 tons on June 1.
Also in New York, silver futures for March delivery fell 15.5 cents, or 0.8 percent, to $18.494 an ounce. Platinum for January delivery dropped $23.80, or 1.6 percent, to $1,443.80 an ounce and March palladium slid 1 percent to $370.80 an ounce.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ap9cReAdBcT0
Zinc gains 2.6%, Lead up 2.8%, Copper Surges to 14-Month High in London, New York and Shanghai
Nov. 23 (Bloomberg) -- Copper futures in London, New York and Shanghai rallied to 14-month highs in Asia as expectations for further dollar weakness increased investor interest in physical assets as alternative investments.
The metal used in construction and automobiles has more than doubled this year in London as the dollar fell 7.2 percent against a basket of six major currencies, encouraging investment in raw materials. The most accurate dollar forecasters predict the currency will continue sliding as record low interest rates, a widening trade deficit and climbing unemployment weighs on it.
“Broad price increases of this magnitude in these and other metals while physical market indicators are highlighting an increased availability of metal for prompt delivery suggest that the major buying impetus came from the financial sector,” Morgan Stanley analysts led by Hussein Allidina, said in a note.
Copper for delivery in three months on the London Metal Exchange gained as much as 2.2 percent to $6,998 a metric ton, the highest price since Sept. 24, 2008, and traded at $6,995 at 3:20 p.m. in Singapore. The March-delivery contract rose as much as 2.1 percent to $3.20 a pound on the Comex division of the New York Mercantile Exchange, the highest since Sept. 23, 2008.
February-delivery copper on the Shanghai Futures Exchange rose as much as 2.6 percent to 55,060 yuan ($8,064) a ton and ended the day at 55,020 yuan.
The dollar fell today for the first time in three days against the euro on speculation the Federal Reserve will keep its stimulus measures in place and ensure interest rates remain low. It was at $1.4959 per euro from $1.4862 on Nov. 20.
Growing Inventories
Still, inventories in Shanghai are at a five-and-a-half- year high, having risen for a third week to 107,405 tons. Copper stockpiles tallied by the London Metal Exchange climbed to 421,875 tons on Nov. 20, the 14th straight daily increase and the highest level since April 27.
The resolution of an almost six-week strike at BHP Billiton Ltd’s Spence copper mine in Chile also failed to damp the rally. Workers will receive a 4 percent pay rise for a 41-month long contract and a one-time bonus of 7 million pesos ($13,961) besides other benefits, BHP’s Santiago press office said in an e-mailed statement.
“Investor appetite is so great at the moment that it really doesn’t matter what the fundamentals are,” Li Rong, chief analyst at Great Wall Futures Co., said from Shanghai.
Among other LME-traded metals, zinc gained 2.6 percent to $2,314 a ton, lead added 2.8 percent to $2,411 a ton, and nickel was up 3 percent at $17,100 a ton. Aluminum climbed 0.6 percent to $2,073 a ton, while tin rose 1 percent to $15,100 a ton.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aNLyTULVpoMA
Gold closes at $1165.60, sets a new Record as Slumping Dollar Spurs Investment Demand
Nov. 23 (Bloomberg) -- Gold jumped to a record price as the slumping dollar boosted bullion’s appeal as an alternative asset. Silver also gained.
Gold futures touched an all-time high of $1,174 an ounce in New York, after the dollar fell as much as 0.9 percent against the euro. Gold has posted records during nine sessions this month, and is up 32 percent this year as investors and central banks increased their holdings of the metal to preserve wealth. Russia’s central bank said it bought more bullion last month.
“All this buying shows no confidence in the dollar,” said Bernard Sin, the head of currency and metals trading at bullion refiner MKS Finance SA in Geneva.
Gold futures for December delivery rose $17.90, or 1.6 percent, to $1,164.70 an ounce on the New York Mercantile Exchange’s Comex division, the biggest gain in a week.
In London, bullion for immediate delivery climbed $13.73, or 1.2 percent, to $1,164.33 an ounce at 7:43 p.m. local time after earlier touching a record price of $1,174.
Gold may surge to $1,500 an ounce over the next 18 months, Bank of America Merrill Lynch analysts said today in a report.
The U.S. Dollar Index, a six-currency gauge of the greenback’s value, slid on speculation that the Federal Reserve will hold U.S. interest rates at historic lows indefinitely. The Fed cut the target range for its benchmark lending rate to zero percent to 0.25 percent in December. The dollar index is down 7.6 percent this year.
Russia’s central bank increased its gold holding to 19.5 million ounces last month from 19 million ounces in September, Bank Rossii said on its Web site.
Government Buying
Governments, the biggest holders of gold, have been expanding their bullion reserves, helping to spur an 8.3 percent rally in the metal’s price from Oct. 20 to Nov. 20. India’s central bank bought 200 metric tons from the International Monetary Fund in October. Mauritius and Sri Lanka also have been buying gold. The IMF still has about 200 tons left to sell.
“Any given emerging-market central bank cannot hedge against further U.S. dollar weakness by buying euros or sterling,” Bank of America Merrill Lynch said, citing the likelihood of rate moves by the European Central Bank and the Bank of England. “This is because there is a significant probability that the ECB and the BOE will have to follow any monetary policy moves by the Fed.”
The ECB’s benchmark lending rate is at 1 percent and the Bank of England’s main rate is at 0.5 percent.
Non-Dollar Purchases
Dennis Gartman, an economist and the editor of the Gartman Letter in Suffolk, Virginia, told investors to buy gold denominated in other currencies.
“Owning gold across the currency spectrum has effectively hedged the dollar exposure,” Gartman said in a note to clients.
Holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, were unchanged for a second day at 1,117.49 tons as of Nov. 20, according to its Web site. The fund’s cache reached a record 1,134 tons on June 1.
Sales of American Eagle gold coins by the U.S. Mint jumped 88 percent this year through October, to 1.07 million ounces, from the first 10 months of last year, data on the mint’s Web site shows. The mint lists November sales at 99,500 ounces of the coins. The U.K.’s Royal Mint said last week that it quadrupled output of gold coins in the third quarter.
Gold is in the second stage of a rally to $1,500 that began with the credit crisis in August 2007, Bank of America Merrill Lynch said. The second stage is marked by dollar weakness. In the third stage, a recovery in energy and commodity prices will boost investment into precious metals, the bank said.
Silver futures for December delivery climbed 17 cents, or 0.9 percent, to $18.61 an ounce, after touching a 16-month high of $18.935 earlier. The metal is up 65 percent in 2009.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aTjz9pZClR6c
Here is a link to a video they did in Dec 2007..it is a little dated but provides a great background for those interested ..
http://video.google.com/videosearch?client=safari&rls=en-us&q=l&oe=UTF-8&um=1&ie=UTF-8&sa=N&hl=en&tab=wv#q=CORONADO+RESOURCES+LTD&hl=en&emb=0&client=safari&qvid=CORONADO+RESOURCES+LTD&vid=6938406775546390169&view=2
The called the property The Richest Hill on Earth
Rebounding from morning lows, Gold Rises for Sixth Straight Session on Bets Dollar to Drop
Nov. 20 (Bloomberg) -- Gold prices climbed for the sixth straight session on speculation that the dollar will decline, boosting demand for the metal as an alternative investment.
The dollar touched a 15-month low against a basket of major currencies on Nov. 16. The greenback climbed as much as 0.8 percent today. Gold reached a record $1,153.40 an ounce on Nov. 18 and has fallen once in 15 sessions this month. The metal has climbed 30 percent this year, heading for a ninth straight annual gain.
“People are still buying gold because they think the dollar hasn’t been broken yet,” said Marty McNeill, a trader at R.F. Lafferty Inc. in New York. “If the dollar rallies, it’s an excuse to sell for profit. Any dip in prices is a buying opportunity.”
Gold futures for December delivery rose $4.90, or 0.4 percent, to $1,146.80 on the Comex division of the New York Mercantile Exchange. Earlier, the price dropped as much as 0.8 percent. The metal gained 3.2 percent in the previous five sessions. In November, the price has climbed more than $100.
The popularity of exchange-traded funds backed by gold may diminish the historic inverse correlation between the dollar and the metal during times of financial turmoil, Deutsche Bank AG said today in a report.
Investors have poured $55.5 billion into gold ETFs in the nine months ended Sept. 30, Jason Toussaint, the World Gold Council’s managing director of ETFs, said this week. SPDR Gold Trust, the biggest bullion-backed ETF, has almost 1,118 metric tons, or more than China’s reserves.
Correlation ‘Fade’
“The gold price should not fear a new long-term uptrend in the dollar,” Deutsche Bank said. “In periods of risk aversion which lead to a strengthening dollar and strong inflows into gold ETFs, the strong correlation may start to fade.”
China ranks sixth among official holders with 1,054 tons, according to data from the producer-funded council. The U.S. is the largest.
Silver futures for December delivery fell 1.5 cents to $18.44 an ounce in New York. Platinum for January delivery fell $2 to $1,441.90 an ounce. Palladium for December delivery declined $5.55, or 1.5 percent, to $364.35 an ounce, the biggest drop in three weeks.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=afNARFHjW.f0
US gold ends higher on strong investor sentiment
Thu Nov 19, 2009 3:43pm EST Email | Print | Share | Reprints | Single Page [-] Text [+]
NEW YORK, Nov 19 (Reuters) - U.S. gold futures ended a
shade higher on Thursday, rebounding from losses early in the
session as strong demand by investment funds more than offset a
higher dollar and risk-aversion.
For the latest detailed report, click on [GOL/].
GOLD
* COMEX December gold GCZ9 settles up 70 cents at
$1,141.90 an ounce on the NYMEX.
* Range spanned from $1,130 to $1,146.50.
* A retreating dollar rally contributed to gold's strength
late in the session - James Steel at HSBC.
* Gold initially pressured by a higher dollar and yen, as
declines in equities revived the safe-haven appeal of the U.S.
and Japanese currencies. [USD/]
* Gold's ability to rebound despite weaker equities and
commodities was impressive - Steel.
* Sentiment still positive after news that billionaire
hedge fund manager John Paulson will start a gold fund.
* The UK Royal Mint said its gold coin production more than
quadrupled in the third quarter. [ID:nLJ390565]
* Options-related buying due to tremendous open interest of
$1,200 call options could pull market higher - traders.
* Gold sales in the first year of the third Central Bank
Gold Agreement, which began on September 27, have reached only
1.5 tonnes so far - World Gold Council. [ID:nLJ440376]
* Interest rates may not rise any time soon, even though
assets such as gold have streaked to new records - Bond-fund
manager Bill Gross. [ID:nN19201133]
* Gold-to-oil ratio at 14.74, up from the previous
session's 14.36.
* COMEX estimated final volume at a heavy 203,378 lots.
* Spot gold XAU= at $1,144.65 an ounce at 3:25 p.m. EST
(2025 GMT), compared with $1,144.70 late in the previous
session in New York.
* London's afternoon gold fix XAUFIX= at $1,135.50 an
ounce.
SILVER
* December silver SIZ9 ends up 4 cents at $18.455 an
ounce, tracking gold's turnaround.
* Ranged from $18.150 to $18.640.
* COMEX estimated final volume at 40,642 lots.
* Spot silver XAG= was at $18.53 against $18.54 in the
previous session in New York.
* London silver fix XAGFIX= at $18.20.
PLATINUM
* January platinum PLF0 finishes down $8.10 at $1,443.90
an ounce as platinum tracks broad-based commodities weakness.
* Spot platinum XPT= $1,441.50 an ounce.
PALLADIUM
* December palladium PAZ9 closes down $4.25, or 1.1
percent, at $369.90 an ounce on platinum's weakness.
* Spot palladium XPD= $365.50 an ounce.
Close Change Pct 2008 YTD
Chg Close % Chg
US gold GCZ9 1141.90 0.7 0.1 884.3 29.1
US silver SIZ9 18.455 0.040 0.2 11.295 63.4
US platinum PLF0 1443.90 -8.10 -0.6 941.50 53.4
US palladium PAZ9 369.90 -4.25 -1.1 188.70 96.0
Prices at 3:02 p.m. EST (2002 GMT)
Gold XAU= 1143.60 -1.10 -0.1 878.20 30.2
Silver XAG= 18.51 -0.03 -0.2 11.30 63.8
Platinum XPT= 1441.00 1.50 0.1 924.50 55.9
Palladium XPD= 365.50 -3.000 -0.8 184.50 98.1
Gold Fix XAUFIX= 1135.50 -0.50 0.0 836.50 35.7
Silver Fix XAGFIX= 18.20 -54.00 -2.9 14.76 23.3
Platinum Fix XPTFIX= 1435.00 5.00 0.3 1529 -6.1
Palladium FixXPDFIX= 370.00 4.00 1.1 365.0 1.4
(Reporting by Frank Tang; Editing by David Gregorio)
Lead slides, Zinc gains, Copper May Drop on U.S. Housing Data, Rising Global Stockpiles
Nov. 19 (Bloomberg) -- Copper, little changed, may fall as weaker-than-estimated U.S. housing data and expanding global inventories renewed speculation supply may outpace demand.
Builders, the biggest copper users in the U.S., began work on fewer new homes last month, compared with September. Housing starts slid to an annual rate of 529,000 units in October, compared with a median estimate of 600,000 in a Bloomberg News survey. The U.S. is the biggest copper consumer after China.
“For the next few days, consolidation is the most likely price path given the latest economic numbers,” Stefan Graber, analyst at Credit Suisse Group in Singapore, said in a note.
Copper for delivery in three months on the London Metal Exchange traded at $6,872.50 a metric ton at 3:16 p.m. Singapore time, after rising to a 14-month high of $6,992 yesterday as the weakening dollar boosted the appeal of commodities as alternative investments. The dollar strengthened 0.3 percent to $1.4921 against the euro, from $1.4963 yesterday, on speculation European lenders will disclose more credit losses.
The March-delivery copper contract was little changed at $3.1395 a pound on the Comex division of the New York Mercantile Exchange. February-delivery copper on the Shanghai Futures Exchange lost as much as 1.2 percent to 53,300 yuan ($7,806) a ton and ended the day at 53,540 yuan.
The worst postwar recession has curbed demand for the metal used mainly in construction and automobiles, boosting London Metal Exchange stockpiles by 22 percent this year. Inventories rose for a 12th day yesterday to 414,100 tons.
Among other LME-traded metals, aluminum was unchanged at $2,066 a ton, and nickel was little changed at $17,130 a ton. Lead slid 0.3 percent to $2,397 a ton, tin dropped 1 percent to $15,050 a ton, while zinc gained 1 percent to $2,269.50 a ton as of 3:07 a.m. in Singapore.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aXCjAF9iv.BQ
"Correction" comes as no shock, as Gold Drops From Record as Dollar’s Gain Damps Commodity Demand
Nov. 19 (Bloomberg) -- Gold futures fell from a record as a rebound by the dollar curbed the precious metal’s appeal as an alternative investment.
The dollar gained as much as 0.8 percent against the euro as equity markets fell, eroding demand for higher-yielding assets. Yesterday, gold topped $1,150 for the first time. Before today, the metal dropped only once this month, heading for a ninth straight annual gain.
“With the rally to a record, people who have been long are going to use the bounce in the dollar as an excuse to take some money off the table and then look for opportunities to get right back in,” said Matt Zeman, a metals trader at LaSalle Futures Group Inc. in Chicago.
Gold futures for December delivery fell $5.60, or 0.5 percent, to $1,135.60 an ounce at 11:41 a.m. on the Comex division of the New York Mercantile Exchange. Before today, the price gained 9.7 percent in November and 29 percent this year.
The Reuters/Jefferies CRB Index of 19 raw materials dropped as much as 1.7 percent today, led by energy.
Gold’s surge to the all-time high of $1,153.40 yesterday pushed the metal’s 14-day relative-strength index above 70, signaling prices may decline.
Gold’s losses may be limited because the dollar’s rebound probably is temporary, analysts said. The Federal Reserve has kept its benchmark lending rate at zero to 0.25 percent since December to help revive the economy, driving the greenback lower.
“No one has faith in a sustained dollar rally,” Zeman of LaSalle said. “The dollar is going to be a victim of the carry trade until the Fed starts tightening.”
Third-Quarter Demand
Gold demand climbed 10 percent in the third quarter to 800.3 metric tons from the previous three months, partly on demand for a currency hedge, the World Gold Council said today. Jewelry purchases also picked up, the group said. The U.K.’s Royal Mint said it quadrupled production of gold coins in the third quarter.
Holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by the metal, rose 3.66 tons to 1,117.49 tons yesterday, the first gain since Nov. 9. Investments in gold ETFs surged 68 percent in the nine months ended Sept. 30 from Dec. 31, the council said yesterday.
India, Sri Lanka and Mauritius have been buying gold to diversify reserves.
“Any pullback in prices and we’ll see demand come right back,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “It’s an asset reallocation into gold. The central banks don’t trust each other’s currencies.”
Silver for December delivery fell 14 cents, or 0.8 percent, to $18.275 an ounce in New York. Platinum for January delivery dropped 1 percent to $1,437.50 an ounce. Palladium for December delivery declined 2.2 percent to $366 an ounc
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aBbjIZQb.cAw
Gold 1153.40 x ounce - Silver hits 18.85 as Gold Climbs to Record as Falling Dollar Boosts Investor Demand
Nov. 18 (Bloomberg) -- Gold climbed to a record in New York as investors bought precious metals as an alternative to holding weaker dollars. Silver, platinum and palladium reached the highest prices in at least 14 months.
Gold futures jumped to $1,153.40 an ounce, the highest ever, as the dollar declined as much as 0.8 percent against the euro. Before today, the U.S. Dollar Index, a six-currency gauge of the greenback’s value, slid 7.3 percent this year as bullion climbed 29 percent in New York.
“People are buying gold to protect themselves from the decline in the dollar,” said Stephen Platt, a commodity analyst at Archer Financial Services Inc. in Chicago. “We’re going to see further devaluation in the dollar and there’s a desire for diversification into gold.”
Gold futures for December delivery rose $1.80, or 0.2 percent, to $1,141.20 an ounce on the New York Mercantile Exchange’s Comex unit, advancing for a fourth straight session.
In London, bullion for immediate delivery reached a record $1,152.85 an ounce. The metal traded at $1,142.40 at 7:01 p.m.
Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, has risen 43 percent this year to 1,113.83 metric tons. The fund holds more gold than the government of China.
Institutional Buyers
Demand for gold from governments, pension funds and investors has helped prices rally for a ninth straight year. Monetary-policy makers have set borrowing costs near zero and spent $2 trillion to pull the world out of the recession.
Hedge-fund operator Paulson & Co. plans to start a gold fund in January, the Wall Street Journal reported today. Founder John Paulson may invest $250 million of his own capital in the fund, the newspaper said.
“The free flow of money in terms of low interest rates keeps up the appetite for gold,” Archer’s Platt said.
The U.S. central bank has kept its benchmark interest rate at between zero percent and 0.25 percent for almost a year. James Bullard, the Federal Reserve Bank of St. Louis president, said today that policy makers may not start to raise rates until early 2012. The European Central Bank’s main rate is at 1 percent while the Bank of England’s rate is at 0.5 percent.
The International Monetary Fund said this week that it sold 2 tons of bullion, valued at about $71.7 million, to Mauritius. The sale followed India’s $6.7 billion purchase of 200 tons in October. The IMF plans to bolster its finances by selling 403.3 tons of the metal from its reserves.
The Washington-based lender is the third-largest holder of gold after the U.S. and Germany. China ranks sixth among official holders with 1,054 tons, according to data from the producer-funded World Gold Council.
Mauritius Purchase
“There is a growing concern among a lot of central banks about piling up an ever-increasing amount of dollar assets when the dollar is declining,” said George Milling-Stanley, a gold council managing director. “China, Russia, India, Sri Lanka, Mauritius, a whole bunch of countries that have not looked to increase their gold holdings in a long time, are starting to do that. That’s a seismic shift in the central-banking world.”
Governments, the biggest holders of gold, have been sellers in the past decade. The Central Bank Gold Agreement binds some governments to annual sales caps of 400 tons until 2014.
Reserve Asset
“The gold bull run is not predicated upon inflation but is instead predicated upon the notion that gold is becoming a reservable asset,” said Dennis Gartman, an economist in Suffolk, Virginia, where he publishes the Gartman Letter. Gold priced in euros and sterling also reached records earlier this year.
Some investors use gold to hedge against inflation. The consumer-price index rose 0.3 percent in October from the previous month, following a 0.2 percent increase in September, figures from the U.S. Labor Department showed today.
Gains were limited after some investors sold the metal as the four-session rally pushed spot gold’s 14-day relative- strength index above 70. Some analysts, who use the gauge to forecast price changes, say a level above 70 may signal a drop. The measure has topped 70 since Nov. 12.
“There could be a pullback,” said Aaron Smith, a managing director at Superfund Financial Singapore Pte, who advised long- term investors to hold their positions. “Investors shouldn’t be nervous about that. It won’t be a surprise that we see $1,200.”
Among other precious metals, silver futures for December delivery rose 2.8 cents, or 0.2 percent, to $18.415 an ounce in New York after reaching $18.855, the highest since July 2008.
January platinum fell $10.50, or 0.7 percent, to $1,452 an ounce after touching $1,471.70, the highest since Sept. 2, 2008. December palladium rose $2.15, or 0.6 percent, to $374.15 an ounce. It reached $380 earlier, the highest since August 2008.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a86c6Ugf8nv4
Silver "falls" to 18.37, Gold Rises on Bets Demand by Central Banks, Investors to Climb
Nov. 17 (Bloomberg) -- Gold prices rose, extending the November rally, on bets that central banks and investors will increase demand for the precious metal as an alternative asset.
The International Monetary Fund said yesterday it sold 2 metric tons of gold, valued at about $71.7 million, to the central bank of Mauritius. The sale was from the 403.3 tons the lender plans to sell. India bought 200 tons last month. Gold reached a record $1,144.20 an ounce yesterday and has dropped only once this month.
“The dominant theme for gold is the increasing demand for hard assets, especially from Asia,” said Donald Selkin, the chief market strategist at National Securities Corp. in New York.
Gold futures for December delivery rose 30 cents to $1,139.40 an ounce on the Comex division of the New York Mercantile Exchange. The most-active contract has climbed 9.5 percent in November.
The Mauritius deal is “another signal that emerging-market central banks are looking to increase their foreign-exchange allocation in gold,” said Shane Oliver, the head of investment strategy at AMP Capital Investors Ltd. in Sydney. “There are a lot of uncertainties in the dollar, and not much confidence in other currencies. Gold is seen as a perfect store of value.”
Earlier, gold fell as much as 1 percent as the dollar gained by that amount against a basket of major currencies. Yesterday, the greenback touched a 15-month low.
‘Positive Sign’
“The fact that gold rose today, even with the stronger dollar, is a positive sign,” Selkin of National Securities said. “It just goes to show that gold has got a little bit of a life of its own, and people want to hold it.”
The metal has gained 29 percent this year, heading the ninth straight annual gain, as record-low interest rates and rising government spending drove the dollar down.
“Despite the metal looking top-heavy, it seems with the prospect of further dollar weakness, gold will remain bid, potentially pushing to fresh highs above $1,150 in coming sessions,” James Moore, an analyst at TheBullionDesk.com in London, said in a report.
Silver futures for December delivery fell 1.3 cents to $18.387 in New York. Platinum futures for January delivery rose $17.90, or 1.2 percent, to $1,462.50 an ounce. Palladium futures for December delivery slipped $4, or 1.1 percent, to $372 an ounce.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aCNRh7S4ZOHo
That is so cool. Lots of companies are thrilled with 8-10 GPT and there are some that are profitable as low as 3 gpt.
25 grams per ton sounds totally awesome to me. GL G.
GLTA !!
jesus thats HUGE...
Coronado drills 45 feet of 25.44 g/t Au at Madison
2009-11-17 12:13 ET - News Release
Mr. Eugene Larabie reports
CORONADO INTERSECTS 45 FEET OF .741 OZ/TON GOLD IN UNDERGROUND EXPANSION DRILLING ON ITS WHOLLY OWNED MADISON GOLD/COPPER PROPERTY IN MONTANA, USA
Coronado Resources Ltd. is continuing with the underground drill program on its wholly owned Madison gold/copper property near Butte, Mont. The results from the recent drillholes, 09-U3 and 09-U4, confirm downward extension of the high-grade gold system beyond the current underground workings at level 500. Hole 09-U3 was drilled on the same bearing as hole 09-U2 directly below at negative 60 degrees and intercepted 45 feet of 0.741 ounce per ton gold (25.44 grams per tonne) while hole 09-04 was drilled 20 degrees to the north of 09-U2 at negative 30 degrees and intercepted 25 feet of 0.588 ounce per ton gold (20.16 grams per tonne).
2009 MADISON DRILL SUMMARY
From To Interval Au Ag Cu
Drill hole (feet) (feet) (feet) oz/t oz/t %
09-U1 12.50 42.50 30.00 0.313 Previously reported
09-U1 incl. 12.50 27.50 15.00 0.528 Previously reported
09-U2 22.00 58.00 36.00 0.4685 1.580 1.960 Previously reported
09-U2 incl. 26.50 44.00 17.50 0.607 0.968 1.079 Previously reported
09-U3 25.00 70.00 45.00 0.741 1.204 1.088
09-U4 48.00 73.00 25.00 0.588 3.897 5.721
The drill program is designed to expand the gold zones immediately below the current underground workings at level 500, all holes were drilled from drill station No. 1. This level previously encountered gold mineralization over 100 feet long, up to 20 feet wide and extended upward for 30 feet, which yielded 2,327 tons of 0.57 ounce per ton gold. Underground diamond drilling continues and results will be published as they are made available.
Assay work was completed by Norris Labs, a local Montana lab using the dry assay method. Norris Labs is not registered by the international standards organization and is used due to proximity and quick turnaround results. Eugene Larabie, PEng, is the qualified person overseeing the project.
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METALS-Copper ends at 13-1/2 mth top on economic optimism
Mon Nov 16, 2009 3:20pm EST
NEW YORK/LONDON, Nov 16 (Reuters) - Copper rallied to its
highest level in 13-1/2 months on Monday, as extended losses in
the dollar, mounting supply-side issues and economic recovery
prospects fed another wave of investment fund flows.
"I think the dollar will keep coming down. The global economy
is getting better, and a lot of the big commodity funds and hedge
funds are throwing money at these markets right now ahead of the
end of the year," said Michael K. Smith, president of T & K
Futures and Options Inc in Port St. Lucie, Florida.
Copper for December delivery HGZ9 rallied 13.10 cents, or
4.4 percent, to end at $3.1035 a lb on the New York Mercantile
Exchange's COMEX division, after dealing in a session range
between $2.9725 and $3.1170, its loftiest level since late
September 2008.
On the London Metal Exchange (LME), copper for three-month
delivery MCU3 ended up $335 at $6,855 a tonne, another high
dating back to late September 2008.
U.S. stocks, seen as a proxy for economic growth, rallied
alongside commodities on Monday as investors focused on
higher-than-forecast retail sales data in October and overlooked a
slowdown in manufacturing activity in New York. [ID:nN16507114]
"A lot of the data we have been getting has been one month
good, one month mixed, one month better, one month not so good ...
and that's indicative of a recovery," said Sterling Smith, an
analyst for Country Hedging Inc in St. Paul, Minnesota. "It tends
to be a little uneven in places."
The rallies picked up steam as the dollar weakened, making
dollar-priced metals cheaper for non-U.S. investors. [.N] [USD/]
Bad weather in China, the world's largest copper consumer,
provided additional underpinnings as the heaviest snowstorms in 60
years sparked worries copper smelter output could get hit.
[ID:nPEK129447]
In other news, Chile's Codelco, the world's top copper
producer, raised term premiums for refined copper to China by $10
per tonne to $85 per tonne for delivery in 2010. [ID:nPEK158133]
"This is a clear signal that metal availability will be
tighter than expected next year, and that the supply squeeze that
is widely anticipated in copper could happen sooner than
expected," said VTB Capital analysts in a note.
"The increase also suggests that available copper inventories
might not be at the very high levels that have been widely
reported."
Latest LME data showed copper stocks rose 2,825 tonnes to
total 406,450 -- the highest level since late April. Nickel
inventories rose 132 tonnes to remain near 15-year highs of
131,880 tonnes. <0#LME-STOCKS>
JAPAN GROWTH
Boosting the economic outlook, data showed that Japan's
economy grew at the fastest pace in more than two years in the
third quarter. Japan is the world's No. 2 economy. [ID:nT339912]
Zinc MZN3 rose nearly 5 percent to end at $2,279 a tonne,
its highest in almost three weeks. The metal ended Friday at
$2,174 a tonne.
"Zinc in particular rallied strongly overnight, on concerns
over disruption in China, though volumes remain relatively
subdued," Standard Bank said in a note.
Aluminum MAL3 ended at $2,030 a tonne against $1,940, having
hit a three-week high of $2,033 after hours. LME stocks for the
metal used in transport and packaging fell 175 tonnes to 4.5
million tonnes, continuing a recent downward trend.
Steel-making ingredient nickel MNI3, the worst performing
LME metal in recent weeks, ended at $16,800 from $16,200.
Analysts as VTB Capital said that should nickel prices fall
significantly below $16,000, Chinese nickel pig iron output will
start to fall and be replaced by increased imports of refined
nickel.
"Nickel prices are likely to find a floor soon, close to
current levels, and regain their upward momentum before the end of
the year," they added.
Battery material lead MPB3 ended at $2,390 from $2,275,
having earlier hit a three-week high of $2,395, while tin MSN3
was last bid at $14,985 from $14,750.
Metal Prices at 1950 GMT
Metal Last Change Pct Move End 2008 Ytd Pct
move
COMEX Cu 310.05 13.20 +4.45 139.50 122.26
LME Alum 2025.00 85.00 +4.38 1535.00 31.92
LME Cu 6855.00 335.00 +5.14 3060.00 124.02
LME Lead 2390.00 115.00 +5.05 999.00 139.24
LME Nickel 16850.00 650.00 +4.01 11700.00 44.02
LME Tin 14910.00 160.00 +1.08 10700.00 39.35
LME Zinc 2283.75 109.75 +5.05 1208.00 89.05
SHFE Alu 15385.00 125.00 +0.82 11540.00 33.32
SHFE Cu* 52750.00 1570.00 +3.07 23840.00 121.27
SHFE Zin 17505.00 185.00 +1.07 10120.00 72.97
** 1st contract month for COMEX copper * 3rd contract month for
SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07
(Additional reporting by Maytaal Angel in London; Editing by
Sue Thomas and Lisa Shumaker)
http://www.reuters.com/article/etfNews/idUSLG35564720091116
Gold $1138.17 sets new Record as Investors Seek Dollar ‘Insurance’
Nov. 16 (Bloomberg) -- Gold prices jumped to a record for the fourth time in six sessions as investors purchased the precious metal as an alternative to a slumping dollar.
The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, fell as much as 0.9 percent today, extending this year’s losses to 8.1 percent. Gold has jumped 29 percent in 2009 as the lowest interest rates ever, coupled with increased government spending, sent the dollar to a 15-month low on Nov. 11.
“People want to own gold now because gold is the ultimate currency,” said Gijsbert Groenewegen, a partner at Gold Arrow Capital Management in New York. “It’s clear that with such low interest rates, the dollar is being allowed to weaken, and there’s no incentive to hold it. There’s an increasing awareness among investors that they should hold some insurance against the lower currency.”
Gold futures for December delivery rose $22.50, or 2 percent, to $1,139.20 an ounce on the New York Mercantile Exchange’s Comex division, the biggest gain for a most-active contract since Nov. 3. After the close of floor trading, the metal continued its rally, touching a record $1,144.20 as of 2:32 p.m. in New York.
The metal extended gains after Federal Reserve Chairman Ben S. Bernanke, in a New York speech today, said economic “headwinds” will probably restrain the pace of the U.S. recovery, warranting continued low borrowing costs for an “extended period.”
‘Very Good Investment’
“As long as Mr. Bernanke is the Fed Chairman, gold will be a very good investment,” Marc Faber, the publisher of the Gloom, Boom & Doom report, said in an interview on Bloomberg Television. Gold may be in a “breakout move,” he said.
The price of bullion has doubled since Bernanke took over as Fed chief in February 2006 and the central bank lowered the benchmark lending rate in December to close to zero.
“Gold is in a secular bull market and all the fundamentals show that prices will keep moving higher,” Joe Foster, who helps manage $8 billion at Van Eck Associates in New York, said in an interview last week. “We’re in an environment where financial stress, including the weaker dollar, is driving the price. Gold had been a forgotten asset for years and years, and now people are all starting to diversify into gold.”
Demand for Gold
As the Fed cut borrowing costs, the U.S. government boosted spending to a record to combat a recession in the world’s biggest economy, fueling speculation that the dollar will be debased. The Reserve Bank of India bought 200 metric tons of gold from the International Monetary Fund last month, and Sri Lanka’s central bank said this month the country will continue buying the metal.
Gold will reach $1,300 in the next six months, Foster said. Shares of gold-mining companies may outperform bullion, he said. The Philadelphia Stock Exchange Gold & Silver Index is up 51 percent this year.
Touradji Capital Management LP bought 2.23 million shares of Barrick Gold Corp., the world’s biggest producer, while selling shares in SPDR Gold Trust during the third quarter. Barrick has jumped 32 percent in New York since June 30 while gold rose 23 percent. The SPDR is the largest exchange-traded fund backed by bullion.
SPDR Holdings
Investors at “all levels, from retail investors to central banks, are really diversifying their portfolios,” said Toby Hassall, an analyst with CWA Global Markets Pty Ltd. in Sydney.
Holdings in the SPDR fell 0.61 metric tons to 1,113.83 tons on Nov. 13, its Web site showed. The holdings reached a record 1,134 tons on June 1.
Gold bullion for immediate delivery gained 2.2 percent to $1,143.20 an ounce in London as of 7:33 p.m., after earlier reaching a record $1,143.60.
Silver futures for December delivery surged $1.02, or 5.9 percent, to $18.40 an ounce on Comex. The gain was the biggest rally for a most-active contract since Sept. 3.
Platinum for January delivery rose 4 percent to $1,444.60 an ounce on the Comex, after earlier touching $1,455.30, the highest price since Sept. 2, 2008. Palladium for December delivery advanced 5.4 percent to $376 an ounce
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aJeWTfIgi4WM
Gold $1118.50 - Silver 17.42 Gold, Silver Rally as Dollar Falls, Boosting Demand for Metals
Nov. 13 (Bloomberg) -- Gold prices climbed to a second weekly gain as the dollar fell against the euro, boosting demand for alternative assets. Silver also rose
The dollar slipped as much as 0.6 percent against the euro. Bullion usually gains when the U.S. currency declines. Gold futures reached a record $1,123.40 an ounce yesterday before dropping 0.7 percent, the most since Oct. 26, as the dollar advanced against a basket of six major currencies.
“The dollar is a measure of risk aversion these days,” said Tom Pawlicki, an MF Global Inc. metals analyst in Chicago. “We still like the long-term prospects of the gold market, even though it is at risk in the short-run.”
Gold futures for December delivery gained $10.10, or 0.9 percent, to $1,116.70 on the New York Mercantile Exchange’s Comex division. The most-active contract rose 1.9 percent for the week, the sixth gain in the past seven weeks.
The dollar is down 6.4 percent against the euro this year. The U.S. Dollar Index, the six-currency basket that includes the euro, yen and U.K. pound, fell as much as 0.6 percent today and touched a 15-month low on Nov. 11.
“There will always be a focus on the dollar,” said Wolfgang Wrzesniok-Rossbach, the head of marketing and sales at Hanau, Germany-based Heraeus Metallhandels GmbH. “There’s still a lot of interest for physical gold. There’s now a tendency to buy on dips.”
Spot Prices Rise
In London, bullion for immediate delivery climbed $12.20, or 1.1 percent, to $1,116 an ounce at 7:18 p.m. local time, for a 1.9 percent weekly gain. Spot gold prices are up 27 percent this year, heading for a ninth annual increase, the longest winning streak since at least 1948.
The metal fell to $1,104 in the London afternoon “fixing,” the price used by some mining companies to sell their output, from $1,107.50 in the morning.
Gold “looks capable of maintaining its recent pace,” Barclays Capital analysts said today in a report.
Inflation expectations are rising, central banks are increasingly looking favorably on the metal and there are signs of improving demand, Barclays said in the report.
Dollar Alternative
“The strength in the gold price is demand-driven, mainly as an alternative to the dollar,” Catherine Gignac, a managing director of mining research at Sandfire Securities Inc. in Toronto, said by e-mail.
Gold may extend gains next week on speculation that investors and central banks will buy the metal as an alternative to the slumping dollar, according to 18 of 19 traders and analysts surveyed by Bloomberg News.
“The Federal Reserve is still focusing on keeping rates overly accommodative,” said Jim Pogoda, an investor in Summit, New Jersey, and a former precious-metals trader for Mitsubishi International Corp. “This should keep the dollar retreating and add fuel to gold’s rally.”
The Fed last week repeated its intent to keep U.S. interest rates near zero percent for “an extended period.”
Gross domestic product in the 16-nation euro region increased 0.4 percent in the third quarter, the first gain since March 2008, the European Union’s statistics office in Luxembourg said today. The return to growth, responding to government stimulus spending, may signal an end to the recession.
“Investors are still looking for an alternative to pile their money in or protect against potential coming inflation,” Heraeus’ Wrzesniok-Rossbach said. “People still believe in the gold story.”
Gold Outlook
Gold will average $1,110 an ounce in 2010, 6 percent more than previously forecast, Bank of America Merrill Lynch said today in a report. Emerging-market central banks and investor purchases will support prices, according to the report.
Silver futures for December delivery gained 11.5 cents, or 0.7 percent, to $17.38 an ounce in New York. Platinum for January delivery surged $25.50, or 1.9 percent, to $1,388.70 an ounce, the sharpest advance in two weeks. Platinum gained 3 percent this week.
December palladium rose $5.85, or 1.7 percent, to $356.75 an ounce, a 7.9 percent advance for the week. Palladium is this year’s best performer among the major precious metals with an 89 percent gain.
“Palladium’s recent strength has many old timers befuddled,” Miguel Perez-Santalla, a sales vice president at Heraeus Precious Metals Management in New York, said in a report. Fundamentals indicate an excess of supplies “and it is believed a drop is sure to come,” he said. “The U.S. dollar will either add to or take away support from these markets.”
Bank of America Merrill Lynch raised its 2010 silver forecast 18 percent to an average of $17.60 an ounce. The bank also increased its palladium estimate 23 percent to an average of $370 an ounce and platinum by 6.5 percent to $1,440 an ounce.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aPv8CchYVCSI
Zinc Slips, Nickel tumbles, Copper Falls as Dollar Rallies, Inventories at Six-Month High
Nov. 12 (Bloomberg) -- Copper fell in New York and London as the dollar gained for a second day and stockpiles climbed to a six-month high, fanning concern that demand might weaken.
The Dollar Index, a six-currency gauge of the greenback’s performance, added as much as 0.4 percent. That made dollar- priced metals more expensive for holders of other currencies. Copper inventories monitored by the London Metal Exchange rose 1.2 percent to 402,125 metric tons, the highest level since May 6, and are headed for an 18th weekly increase.
“Stocks keep creeping up,” said David Thurtell, an analyst at Citigroup Inc. in London. “Physical demand is soft. With prices pretty fully valued, there is no screaming reason why you’d buy.”
March-delivery copper lost 2.9 cents, or 1 percent, to $2.962 a pound on the New York Mercantile Exchange’s Comex division at 8:19 a.m. local time. The metal yesterday rose as high as $3.055, the highest price since Oct. 30, as the dollar fell to a 15-month low.
Copper for three-month delivery fell 1 percent to $6,478 a ton on the LME. The dollar index has dropped 7.3 percent this year, helping copper prices to double along with record first- half imports into China and expectations of an economic revival.
‘Bumpy’ Recovery
The world will only rebound gradually from the worst financial crisis since the Great Depression, Chinese Premier Wen Jiabao said.
“The worst is over,” Wen said in Beijing. “The global economy is starting to recover, but a total recovery will be a slow and bumpy process.”
Chinese imports of copper and products tumbled 34 percent in October from the prior month, the customs office said yesterday. The nation will probably buy 17 percent less copper next year as existing stockpiles are run down, according to Chile’s government-run copper commission, Cochilco.
Global copper purchases will fall 1.1 percent in 2010, a third annual consecutive decline, Cochilco wrote in a report yesterday.
The outlook for demand in the long term is very positive, said Richard Adkerson, chief executive officer of Freeport- McMoRan Copper & Gold Inc. The Phoenix-based company is the world’s largest publicly traded copper producer.
“China is leading the way, but elsewhere in Asia, eastern Europe and Latin America, there’s huge populations that are moving into high standards of living,” Adkerson said today in Singapore.
Nickel Inventories
Among other LME metals for three-month delivery, nickel fell 2.4 percent to $16,445 a ton. The contract fell as low as $16,370, the lowest intraday price since Sept. 14, as LME- monitored stockpiles rose for a seventh day to 131,730 tons, the highest level since 1995. The metal is the worst LME performer over the past month, down 13 percent.
The downside risks to nickel are increasing as supplies grow and demand remains subdued, Alan Heap and Alex Tonks, analysts at Citigroup Inc. in Sydney, said in a report today.
“A key concern is unreported nickel inventories in China,” they said, pointing to an inventory build of 104,000 tons.
Zinc lost 0.9 percent to $2,165 a ton.
Prices were supported in the short-term on possible production disruptions accounting for about 8 percent, or 900,000 tons, of global supplies, Max Layton, an analyst at Macquarie in London, said by phone today. “Prices could easily spike up,” he said.
In Australia, zinc concentrate output at China Minmetals Corp.’s Century mine has been suspended since a pipeline ruptured Oct. 5. The nation’s largest metals trader said today that the repairs at the world’s second-largest open-pit zinc mine were on schedule.
Strike in Peru
Workers at the Cia. Minera Antamina SA mine in Peru voted to strike, having negotiated with management since July after their three-year contract expired. The mine produced 382,842 tons of zinc and 358,180 tons of copper last year, according to the Energy & Mines Ministry.
Aluminum was down 0.7 percent at $1,952 a ton, lead fell 1.8 percent to $2,262.25 a ton and tin gained 0.1 percent to $14,727 a ton.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=axAsAg.eRKCk
Platinum and Silver up, Gold Falls From Record as Stronger Dollar Spurs Bullion Sales
Nov. 12 (Bloomberg) -- Gold fell for the first time in five days in London as a stronger dollar prompted some investors to sell after the metal’s rally to a record. Gold futures were little changed after earlier rising for a ninth day, the longest run since 1982.
The Dollar Index added as much as 0.4 percent after yesterday slipping to a 15-month low. Bullion is still heading for a second weekly gain after India’s central bank bought gold last month to diversify reserves. Futures reached a record today and investor Marc Faber said bullion, set for a ninth annual increase, will remain above $1,000 an ounce.
“The dollar is gaining some strength,” Sagiv Perez, a senior dealer at Finotec Trading U.K. in London, said by phone today. “There’s a little bit of profit-taking because the highs in gold at the moment are quite substantial.”
December gold futures climbed as much as 0.8 percent to $1,123.40 an ounce on the New York Mercantile Exchange’s Comex division, and were down 0.1 percent at $1,113.30 by 8:46 a.m. local time. Immediate-delivery bullion dropped 0.4 percent to $1,113.30 an ounce in London after earlier reaching $1,123.38. Platinum and palladium rose to the highest prices in more than a year.
Gold increased to a record $1,116 an ounce in the morning “fixing” in London from $1,115.25 at yesterday’s afternoon fixing. Some mining companies use fixings to sell production.
Up to $1,150?
The dollar index, currently at 75.386, has dropped this year on record-low U.S. interest rates and increased government borrowing to combat recession. Gold priced in dollars tends to move in the opposite direction to the U.S. currency.
“Consensus remains very dollar-bearish,” Andrey Kryuchenkov, an analyst at VTB Capital in London, said in a report. “A sustained push below 75 on the dollar index could see gold rallying even higher toward $1,150 before the end of the month.”
News last week of bullion purchases by the Indian and Sri Lankan governments raised speculation other countries will follow suit. Analysts at Bank of America Merrill Lynch, Societe Generale SA and Barclays Capital have forecast further purchases by central banks, already the biggest holders.
“Gold looks to be on target to hit $1,300 before the end of the year,” said Wallace Ng, Hong Kong-based chief trader at Fortis Bank’s commodity-derivatives unit. “It will still be the dollar in the driving seat.”
1980 Peak
The metal remains below its all-time high after accounting for inflation. Spot gold’s $850-an-ounce peak in 1980 equates to $2,227.84 today after adjusting for changes in prices, according to the U.S. Labor Department’s inflation calculator.
“We will not see less than the $1,000 level again,” Faber said at a conference yesterday. The former Drexel Burnham Lambert banker publishes the Gloom Boom & Doom Report investment newsletter.
“Central banks are all the same,” Faber said. “They are printers. Gold is maybe cheaper today than in 2001, given the interest rates. You have to own physical gold.”
The rally in futures has lifted spot gold’s 14-day relative-strength index, a gauge of whether a commodity or security is overbought or oversold, above the level of 70 viewed by some investors as a signal for a retreat. Today’s index was 72.32, according to Bloomberg data.
“We may see the dollar rebound in the next one or two weeks,” Fortis’s Ng said. “That’s when we’ll probably see the gold correction many investors are calling for.”
Holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, were unchanged for a second day at 1,114.44 tons yesterday, its Web site showed. The holdings reached a record 1,134 tons on June 1.
Cars in China
Silver for December delivery in New York lost 0.5 percent to $17.445 an ounce. Platinum for January delivery gained as much as 1.2 percent to a 14-month high of $1,386 an ounce, and was last little changed at $1,369.90.
Palladium for December delivery advanced as much as 3.8 percent to $359 an ounce, the highest price since August 2008. The best-performing precious metal this year was last at $355.
Automakers account for about 60 percent of platinum and palladium use, according to metals researcher and refiner Johnson Matthey Plc. China’s passenger-car sales rose 76 percent last month as a $586 billion stimulus package and record bank lending helped boost auto demand.
China will remain the world’s largest automobile market for “some time to come,” Nissan Motor Co. Chief Executive Officer Carlos Ghosn said today at a forum in Shanghai.
“Catalytic converters, economic growth, all these sorts of good fundamental stories should help these secondary precious metals,” Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney, said in a Bloomberg Television interview today. “As we are climbing out of this recession, it will be those metals that will be well sought after.”
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aCPWsyeOXKhk
Dollar outlook dims, Gold Futures Rise to Record on Speculation Dollar Will Decline
Nov. 11 (Bloomberg) -- Gold surged to a record $1,119.10 an ounce in New York on speculation a decline in the dollar will spark demand for the precious metal as an alternative asset.
The metal climbed for the eighth straight session, the longest rally since January 2006. Before rebounding today, the dollar extended a slump to a 15-month low against a basket of currencies. India’s central bank bought gold last month to diversify reserves.
“The interest that central banks have shown for gold has really lit a fire under the market,” said Matt Zeman, a metals trader at LaSalle Futures Group Inc. in Chicago. “People are questioning the value of not only the U.S. currency, but all paper currencies. Investors are more comfortable holding gold.”
Gold futures for December delivery climbed $12.10, or 1.1 percent, to $1,114.60 on the New York Mercantile Exchange’s Comex division. The price has jumped 7.1 percent this month, while the dollar dropped 1.5 percent against the currency basket. The metal is headed for a ninth straight annual gain.
Gold for immediate delivery jumped to a record $1,118.88.
The dollar has declined more than 7 percent since December, when the Federal Reserve cut its benchmark lending rate close to zero percent to pull the U.S. economy out of recession.
Dollar Outlook
“The dollar is not going to get any firm footing with rates at zero,” Zeman said. “The dollar is going to continue to be the victim of the carry trade. People are selling dollars and putting it in higher-yielding assets. All commodities are going higher.”
The Bank of England’s benchmark rate is 0.5 percent while the European Central Bank’s key rate is 1 percent.
Governments in the U.S. and other nations have cut borrowing costs and boosted spending amid the deepest recession since World War II, spurring some investors to buy bullion as a hedge against inflation.
“What’s the value of paper money?” said John Hathaway, the managing director of New York-based Tocqueville Asset Management LP and the manager of the Tocqueville Gold Fund. “It depends on what happens in the next three years to the efforts of the Federal Reserve and other world central banks to bring about an economic recovery.”
“Would they be able to retract the liquidity they put into place?” Hathaway said today in a Bloomberg Television interview. “If they have a hard time doing it, I think we’ll see inflation, and gold will go much higher.”
India’s central bank last month bought 200 metric tons of gold from the International Monetary Fund for $6.7 billion. Sri Lanka also said it has been buying gold. That prompted analysts at Bank of America Merrill Lynch, Societe Generale SA and Barclays Capital to forecast further purchases by central banks, already the biggest holders of gold.
Silver futures for December delivery climbed 31.5 cents, or 1.8 percent, to $17.537 an ounce. The metal has surged 55 percent this year after declining 24 percent in 2008.
Palladium futures climbed to a 15-month high today.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aJwZs1AweH_s
Zinc slips slightly, Copper Falls on Dollar, Speculation of Chinese Demand Weakness
Nov. 10 (Bloomberg) -- Copper fell in New York and London on a rebounding dollar and on speculation demand is weakening in China, the world’s largest metals user.
The Dollar Index, a six-currency gauge of the greenback’s performance, rose as much as 0.3 percent after falling yesterday to the lowest level since August 2008. A stronger U.S. currency makes dollar-priced metals more expensive for holders of other monies. Stockpiles monitored by the London Metal Exchange are headed for an 18th weekly increase. Copper may be re-exported from China because there are so few buyers, according to Xi’an Maike Metal International Group.
“There are some worries that there has been a fair amount of metal sitting around, which may just act as a near-term drag in terms of pricing,” Charles Kernot, an analyst at Evolution Securities Ltd. in London, said by phone. “We are going into a little bit of a quiet period around the turn of the year, so it may well be the case that the price may just drift off.”
December-delivery copper fell 2 cents, or 0.7 percent, to $2.9475 a pound on the New York Mercantile Exchange’s Comex division at 8:27 a.m. local time. Copper for three-month delivery shed 0.7 percent to $6,495 a metric ton on the LME.
The metal has more than doubled this year, bolstered by a weaker dollar, down 7.6 percent this year, and record first-half imports into China.
German Index
A larger-than-expected slide in an index of German investor and analyst expectations weighed on prices. The country is the world’s third-largest copper user after China and the U.S.
The ZEW Center for European Economic Research in Mannheim said its expectations index, which aims to predict developments six months ahead, dropped to 51.1 from 56 in October. The median forecast in a Bloomberg News survey of 39 economists was for a decline to 55.
“The fundamentals behind most of the metals do not justify the lofty valuations,” Edward Meir, an MF Global Ltd. analyst in Darien, Connecticut, said in a note. “Stocks are continuing to push higher, telling us that although demand may be improving, supply is still more than comfortable to accommodate any such increase.”
Inventories of copper in LME-monitored warehouses today rose 1.2 percent to 394,150 tons, the highest since May 6. Metal booked for delivery fell 2.4 percent to 2,025 tons, or 0.5 percent of LME copper inventories, down from 21 percent in May.
“There is not a lot of expectation that metal will come out of the warehouse,” Evolution’s Kernot said.
Chine Re-Exporting
In Shanghai, copper stockpiles expanded 1,440 tons, or 1.4 percent, to 104,275 tons last week, the highest level since April 2004, according to data from the Shanghai exchange.
Copper stockpiles held in duty-free warehouses in China may be re-exported after surging to as much as 350,000 tons from almost zero at the start of the year, according to Xi’an Maike.
“We can hardly find buyers for refined copper,” said Luo Shengzhang, general manager of the copper department. The company ranks among country’s three biggest importers, according to the executive. “China’s got to export some copper from now and next year,” Luo said in an interview.
If China has “excess metal that they don’t think they need any more, and the price is attractive in comparison to what they paid for it, then clearly that is a downside risk in terms of international pricing,” Evolution’s Kernot said.
Among other LME metals for three-month delivery, nickel fell 3.2 percent to $16,880 a ton after reaching an intraday low of $16,825, the lowest since Sept. 29. The metal has dropped 10 percent over the past month, the worst performer on the LME.
Nickel stockpiles in LME warehouses have risen 70 percent this year to 131,388 tons on weaker demand from stainless steel mills, accounting for about two-thirds of global demand.
Aluminum was little changed at $1,950 a ton, and zinc slipped 0.4 percent to $2,152.75 a ton. Lead shed 1.1 percent to $2,274 a ton, and tin added 0.3 percent to $14,800 a ton.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a1AKaTZLh0CU
Gold holding fairly strong today, but May Drop as Dollar Strengthens, Record Prices Spur Sales
Nov. 10 (Bloomberg) -- Gold, little changed today in London and New York, may decline as the dollar strengthens and some investors sell the metal to lock in record prices.
Bullion futures reached $1,111.70 an ounce yesterday. That lifted its 14-day relative strength index, a gauge of whether a commodity or security is overbought or oversold, above the level of 70 viewed by some investors as a signal of an impending retreat. The Dollar Index added as much as 0.3 percent today after yesterday slipping to a 15-month low.
“Gold is clearly overbought, gold is clearly over- participated in by the investing/speculating public, and gold needs a good sound thrashing to take the late-comers out of the positions and in the process restore relative health,” economist Dennis Gartman said in his Suffolk, Virginia-based Gartman Letter.
December gold futures lost as much as $4.20, or 0.4 percent, to $1,097.20 an ounce on the New York Mercantile Exchange’s Comex division and were last up 60 cents at $1,102 by 8:33 a.m. local time. Immediate-delivery bullion slipped 0.2 percent to $1,102 in London.
The metal dropped to $1,099.75 in the morning “fixing” in London, used by some mining companies to sell production, from $1,106.75 at yesterday’s afternoon fixing.
The Dollar Index, a six-currency gauge of the greenback’s performance, gained today on prospects investors moved before a U.S. public holiday to pare back bets on a weaker dollar and as German investor confidence deteriorated more than forecast. Still, gold futures are up 25 percent this year, heading for a ninth annual gain, as the currency index tumbled 7.6 percent. Bullion and the dollar tend to move in opposite directions.
Month End
“We expect the market to trade around $1,100 for a few days before a run at $1,150 into month-end,” Barclays Capital strategists led by Jordan Kotick wrote in a note e-mailed today.
The Group of 20 governments agreed over the weekend to keep stimulus measures and remained silent on the greenback’s decline this year, fueled by record low U.S. interest rates.
“The key issue is the dollar, but if you look at the G-20 announcement, you could make a point that it’s not just the dollar, it’s actually the yen, the euro and the dollar which are looking very weak versus the rest of the world,” Juerg Kiener, chief investment officer at Swiss Asia Capital Ltd., said in a Bloomberg Television interview today.
Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, rose 6.1 metric tons yesterday to 1,114.44 tons, the biggest increase in a month, figures on the company’s Web site showed. Gold held in ETF Securities Ltd.’s exchange-traded products added 0.4 percent to 7.941 million ounces yesterday, its Web site showed.
Silver for December delivery in New York fell 0.6 percent to $17.37 an ounce. Platinum for January delivery slipped 0.7 percent to $1,357.10 an ounce, while palladium for December delivery was 0.4 percent lower at $334.70 an ounce.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aN8WPp6ybVnc
Copper prices rally on brighter demand prospects
Posted: Monday , 09 Nov 2009
LONDON (Reuters) -
Copper rallied on Monday as demand prospects brightened after Codelco, the world's top copper miner, raised premium charges for Asian customers in 2010, while a weaker dollar also helped boost industrial metals.
Three-month copper futures on the London Metal Exchange MCU3 traded at $6,572 a tonne at 1537 GMT from $6,490 on Friday, when a weaker than expected monthly jobs report from the United States hit the dollar and sentiment.
Chile's Codelco raised its term premium for copper to the Japanese port of Yokohama to $75 a tonne in 2010, and to $74 for South Korean buyers, in anticipation of rising demand in parts of Asia, industry sources said on Monday.
These increases for Japan and South Korea were equivalent to around 15.5% of 2009's levels. "They're selling more and more of their mined copper to China, India and Korea and it's a clear example of how much that region is powering ahead, while Europe and the U.S. are not growing very quickly," said Robin Bhar, an analyst at Calyon.
Also a plus was the tumbling dollar, which makes commodities priced in dollars cheaper for holders of other currencies. The dollar fell across the board after a G20 meeting and Friday's U.S. jobs data did little to alter the view that U.S. rates would stay low for a while. [USD/] The OECD's composite leading indicator at 100.6 in September from 99.3 in August also helped underpin prices.
"The lead indicator for OECD plus six major non-OECD countries (global proxy) suggests the 12-month rate of change in industrial output will increase to (plus) 6.5% year-on-year in coming months," Macquarie said in a note.
"This outlook is broadly consistent (with) ... global demand growth of around 6% year-on-year in 2010."
CHINA DATA
The market is also closely watching China's October trade and output data due later in the week. [ECONCN] China's October imports of unwrought copper and semi-finished copper products are expected to fall after a surprisingly strong inflow in September, hit by poor margins forspot imports and delays to contracted shipments.
Copper has more than doubled in value so far this year on the back of robust demand from China, the world's top consumerof the metal used in power and construction.
"Copper's got more upside heading to the end of the year," said Daniel Smith, an analyst at London's Standard Chartered."$7,000 is the next target before the end of the year."
Upbeat German data also supported. Industrial output in Europe's largest economy rose much faster than expected in September and imports posted their biggest increase in over a year.
Keeping a leash on sentiment, however, inventories of copper at LME warehouses have been rising since mid-July. Stocks rose 3,900 tonnes to 389,475 tonnes, their highest since early May.
"Poor fundamental data continues to be mostly ignored," Commerzbank said in a note.
Aluminium MAL3 traded at $1,933 from $1,910. Stocks of the metal used in transport and packaging fell 2,475 tonnes to around 4.5 million tonnes, off this year's record highs around 4.6 million tonnes.
http://www.mineweb.com/mineweb/view/mineweb/en/page36?oid=92491&sn=Detail
Gold hits record above $1,105 and analysts still predicting more upside
Safe haven buying was the watchword in Asia on Monday after weaker than expected unemployment data from the US did the dollar no favours
Author: Lewa Pardomuan (Reuters)
Posted: Monday , 09 Nov 2009
SINGAPORE (Reuters) -
Gold powered to another record high on Monday on safe-haven buying as the U.S. dollar slipped and after a weaker-than-expected U.S. unemployment rate revived worries about the health of the global economy.
Gold has gained more than 25% in 2009, driven by persistent weakness in the U.S. currency that has lost more than 6% versus the euro so far this year, and recently by the failure of a meeting of the Group of 20 finance officials to talk more specifically about the dollar's decline..
As expectations rise that central banks across the globe might look to buy gold to diversify their reserves, analysts say that there could be more upside for the precious metal.
"The fundamental outlook for gold remains favourable," Credit Suisse said in a research report.
Cash gold hit a high of $1,104.80 an ounce, surpassing Friday's lifetime high of $1,100.90, with a jump in oil prices and India's recent purchase of IMF gold adding to the bullish sentiment.
U.S. December gold futures jumped as high as $1,105.4 an ounce to another lifetime high.
"When you look at the RSI on a 14-day basis, it's still in a positive story because it's not overly bought. So, there's potential for further upside," said Mark Pervan, ANZ's senior commodities analyst.
"It could move up quite strongly as we haven't any key resistance level in place," he added.
The dollar index slipped 0.23% to 75.646, while the euro edged up to $1.4870, with a statement from the IMF that the dollar remained on the "strong side" despite a recent sell-off spurring another bout of selling in Asia.
UPTREND INTACT
U.S. employers cut 190,000 jobs in October, greater than the 175,000 fewer jobs forecast, and the unemployment rate rose to 10.2%, a 26-1/2-year high that was above average forecasts of a 9.9 percent rate. and
"We are in uncharted territory," said Darren Heathcote, head of trading at Investec Australia in Sydney.
"The trend is still intact. We're still looking at a positive gold market. (There) doesn't seem to be any particular reason to be selling. I think we are going to be looking for more economic data to decide where we go from here."
In addition to weakness in the dollar, news that the International Monetary Fund had sold 200 tonnes of gold to the Reserve Bank of India for $6.7 billion was also a trigger in bullion's rise.
Japan's foreign reserves rose to a record high for the third straight month in October partly as rising gold prices inflated the value of its gold holdings, the Ministry of Finance said on Monday.
"I don't think there's physical buying but sentiment is still bullish because of a strong euro against the dollar and also firm crude oil prices," said a dealer in Hong Kong, adding that the market saw buying interest from speculators in the United States, Japan and other parts of Asia.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1,108.344 tonnes as of November 6, unchanged from the previous business day. Noncommercial net long U.S. gold futures positions fell 0.2 percent to 241,319 lots in the week to November 3 from 241,777, a weekly report by the U.S. Commodity Futures Trading Commission showed.
Oil prices rose $1 to $78.43 a barrel on Monday, as Hurricane Ida roared through the Gulf of Mexico, where important oil fields are located, and on the back of the falling dollar.
http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=92464&sn=Detail
Gold on a run w.kitco.com
MARKET IS OPEN
(Will close in 17 hrs. 46 mins.)
Metals Date Time (EST) Bid Ask Change from NY Close
GOLD 11/08/2009 23:30 1103.90 1104.90 +7.00 +0.64%
SILVER 11/08/2009 23:30 17.71 17.73 + 0.32 +1.84%
Gold 1096.90 at Friday's close.
http://www.magyver.com/metals.htm
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Copper to Outperform in 2010 on Stimulus Effect, Tong Yang Says
Nov. 6 (Bloomberg) -- Copper, which has more than doubled in price this year, may outperform other metals in 2010 as government infrastructure spending boosts demand for the metal used in electrical wires, Tong Yang Securities Inc. said.
“Prices of industrial metals will advance next year,” Yi Seong Je, a commodities analyst at Tong Yang Securities in Seoul, said by phone yesterday. “Copper will outperform since stimulus spending is focused mostly on infrastructure, which primarily needs the metal.”
Copper gained to a one-year high last month on demand from China, the world’s biggest metals user, and as the dollar slumped against major currencies. China’s government is spending $586 billion to spur the local economy, helping to drive imports to record levels in the first half of 2009.
Yi forecast copper for delivery in three months on the London Metal Exchange may average around $6,500 a ton next year, and top $7,000 a ton by the end of 2010.
Copper on the LME has averaged $4,907 a ton this year, according to Bloomberg data. The metal gained 0.5 percent to $6,562 a ton at 10:06 a.m. Seoul time.
“What I am closely looking at now is demand-related indicators because current price levels fueled by increased liquidity cannot be sustainable without support from actual demand,” Yi said. “The key is by how much demand in major consuming nations apart from China will recover.”
Aluminum in London has gained 26 percent this year, while zinc has jumped 85 percent and lead has more than doubled.
Base-metal prices may decline toward the end of this year because “fundamentals are too weak” to justify current levels and a rebound in the dollar cannot be ruled out, he said.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=affCH0ScTqQw
New record high for Gold today! - Gold Jumps to Record Above $1,100 on U.S. Interest-Rate Outlook
Nov. 6 (Bloomberg) -- Gold futures jumped to a record, topping $1,100 an ounce, on mounting speculation that low U.S. borrowing costs will drive down the dollar, boosting the appeal of the precious metal as an alternative investment.
The metal reached $1,101.90 in New York, heading for a ninth straight annual gain. The dollar is down 6.8 percent this year against a basket of six major currencies as the Federal Reserve keeps its benchmark interest rate at zero to 0.25 percent to revive economic growth.
“Until Washington stops exploding the deficit, the dollar will continue to weaken, and gold is going higher,” said Tom Pawlicki, an analyst at MF Global Ltd. in Chicago.
Gold futures for December delivery rose $6.40, or 0.6 percent, to $1,095.70 on the Comex division of the New York Mercantile Exchange, climbing for the fifth straight day. The price has gained 24 percent this year.
The jobless rate and low inflation will keep the Fed from raising rates until 2011, John Brynjolfsson, the chief investment officer at hedge fund Armored Wolf LLC in Aliso Viejo, California, said in an interview on Bloomberg Television.
The unemployment rate in the U.S. reached a 26-year high of 10.2 percent in October, the Labor Department said today. Consumer costs rose 0.3 percent last month, according to the median forecast of economists surveyed by Bloomberg News.
President Barack Obama has increased the nation’s marketable debt to an unprecedented $7 trillion as the government borrows to fund spending programs intended to bolster the economy.
‘Massive Demand’
“There’s massive investment demand for gold,” said Christoph Eibl, a co-founder of Zug, Switzerland-based Tiberius Group, which manages $1.8 billion. “I see more liquidity pumped in to lift the economies from bad news.”
Seventeen of 23 traders, investors and analysts surveyed by Bloomberg, or 74 percent, said bullion will rise next week. Four forecast lower prices, and two were neutral.
This week, gold gained 5.3 percent, the most since April, after India said it purchased 200 metric tons of gold from the International Monetary Fund last month.
Other central banks may follow in a shift away from the dollar, analysts said.
Sri Lanka’s central bank, which has been purchasing gold for the past seven months, will continue buying the metal as a hedge against volatility in currency markets, Ajith Nivard Cabraal, the bank’s governor, said today. Cabraal, speaking in Colombo, declined to say how much had been bought.
Sri Lanka held 5.3 metric tons of gold as of September, according to World Gold Council data.
Gold ETF
Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, declined to 1,108.34 tons as of yesterday from 1,108.4 tons on Nov. 4.
“We are rather concerned about the crowded nature of the gold market, for everyone, everywhere is long of gold and bearish of the dollar,” economist Dennis Gartman said in his Suffolk, Virginia-based Gartman Letter.
Silver, which has wider industrial applications than gold, declined on concerns that demand will falter because of the sluggish economy.
Silver futures for December delivery fell 3.5 cents, or 0.2 percent, to $17.375 an ounce. The price has climbed 54 percent this year.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aPTo1kauiiRI
Coronado Resources Ltd.: Exploration Drill Results Return Gold Intercept of 17.5 Feet .607 Oz/Ton/Au
VANCOUVER, BRITISH COLUMBIA, Oct 28, 2009 (MARKETWIRE via COMTEX) -- Coronado Resources Ltd (TSX VENTURE: CRD) has gold assay results from the first two diamond drill holes designed to test the extent of the known gold zones and attempt to locate more high-grade copper zones. The first hole (U1) was drilled below the lowest working level of 500 feet and intercepted 30 feet averaging .313 oz/ton/au (11.81 gm/mt au), included in that intercept was 15 foot section containing .528 oz/ton/au (19.93 gm/mt au). The second hole (U2) was drilled to the north of hole U1 and intercepted 36 feet averaging .390 oz/ton/au (14.72 gm/mt au) and included in that was a section of 17.5 feet of .607 oz/ton/au (22.92 gm/mt au). Both holes indicated silver averaging 1.50 oz/ton/ag (56.63 gm/mt ag) with copper in the 2% range.
The company is currently mining the crosscuts in the first level (200 ft level) where the gold oxides were previously mined and sent for processing at Barrick's Golden Sunlight mill. The gold oxides are mainly from the crosscuts support pillars and are estimated to be around 800 tons in the order of .400 oz/ton/au (15.10 gm/mt au). A sample has been sent to Kinross to test the compatibility of our gold oxide for processing at their facility.
Underground diamond drilling continues and results will be published as soon as they are made available.
About Coronado Resources
Coronado Resources Ltd. is a Canadian based exploration and development mining company that is focused on its 100% owned Madison Gold/Copper property in Montana, USA. Madison is a former producer that is now producing cash flow from high grade shipments which commenced in 2008 with recent grades averaging 35% cu and .47 oz/ton/au (17.74 gm/mt au). The Madison region hosts well establish processing and mining infrastructure. The company remains focused on expanding the Madison project with continued exploration and development drilling from the cash flow from sales. Our proven management team is actively pursuing new mining opportunities for its shareholders.
Assay work was completed by Norris Labs, a local Montana lab using the dry assay method. Norris Labs is not registered by the international standards organization and are used due to proximity and quick turnaround results. Eugene Larabie, P. Eng. is the "qualified person" overseeing the project.
On Behalf of the Board
Eugene Larabie, P. Eng., President
Coronado Resources Ltd.
The foregoing information may contain forward-looking statements relating to the future performance of Coronado Resources Ltd. Forward-looking statements, specifically those concerned with future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in filings with the appropriate securities commission.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Contacts:
Coronado Resources Ltd.
Eugene Larabie, P. Eng.
President
604-683-6338 or toll free: 800-811-2322
info@coronadoresourcesltd.com
www.coronadoresourcesltd.com
http://www.pinksheets.com/pink/quote/quote.jsp?symbol=crdaf#getNews
10-22-09 NEWS!
Coronado Resources Ltd.: 2009 Diamond Drill Program Begins on High-Grade Madison Gold Copper Property in Montana, USA
Thursday 10/22/2009 2:10 PM ET - Market Wire
Related Companies
Symbol Last %Chg
CRDAF 0.2236 0.00%
As of 11:37 AM ET 10/23/09
Coronado Resources Ltd. (TSX VENTURE: CRD) has signed a diamond drill contract to reactivate exploration on its wholly owned Madison Gold & Copper Property in Montana, USA. Initial drilling is designed to expand the known mineralization of high grade gold and copper intercepts immediately below and on strike with the workings in the 500 foot level underground. This level developed exposed ore over 100 feet long and up to 20 feet wide which was followed upward 30 feet. The stope yielded over 2,300 tons of .57 oz/ton gold. Drilling will also test the extension of the bonanza grade chalcocite, which averaged 35% copper on the last shipment.
The purpose will be to prove the downward extent of the known gold zone as well attempt to locate more high-grade copper zones. Several areas below the 500 ft level with previous gold intercepts, Hole 86-6: 24 ft of .941 oz/ton Au, Hole 06-08: 17.7 ft of .682 oz/ton Au (or 9 ft of 1.218 oz/ton Au), and Hole 05-06: 54 ft of .322 oz/ton Au. We will also target the area beyond the high-grade copper zone as it has yet to be explored.
Coronado Resources Ltd. is a Canadian based exploration and development mining company that is focused on its 100% owned Madison Gold/Copper property in Montana, USA. Madison is a former producer that is now producing cash flow from high grade shipments which commenced in 2008 with recent grades averaging 35% cu/ton and .47 au/oz/ton. The Madison region hosts well establish processing and mining infrastructure. The company remains focused on expanding the Madison project with continued exploration and development drilling from the cash flow from sales. Our proven management team is actively pursuing new mining opportunities for its shareholders.
Assay results noted above have been previously reported.
Eugene Larabie, P. Eng. Is the "qualified person" overseeing the project. For more information, please visit the company's website at www.coronadoresourcesltd.com.
On Behalf of the Board
Eugene Larabie, President
The foregoing information may contain forward-looking statements relating to the future performance of Coronado Resources Ltd. Forward-looking statements, specifically those concerned with future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in filings with the appropriate securities commission.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Contacts:
Coronado Resources Ltd.
Eugene Larabie
President
604.683.6338 or Toll Free: 800-811-2322
www.coronadoresourcesltd.com
Gold Set for Fourth Weekly Gain as Dollar Weakness Lifts Appeal
Oct. 23 (Bloomberg) -- Gold, little changed today in Asia, is on track for a fourth weekly gain as a weaker dollar boosted investor demand for the precious metal as a store of value.
Bullion is up 0.8 percent this week as Dollar Index, which tracks the greenback against the currencies of six trading partners including the euro and yen, slid 0.8 percent. Some investors buy gold as a hedge against a declining U.S. currency.
“Gold prices will continue to be influenced heavily by U.S. dollar movements,” HSBC Securities analyst James Steel, wrote in a note e-mailed today. “Should the U.S. dollar weaken, gold is likely to remain well-bid.”
Gold for immediate delivery traded at $1,060.32 at 10:56 a.m. Singapore time, after rising as much as 0.3 percent to $1,063.30 an ounce earlier. The metal reached a record $1,070.80 an ounce on Oct. 14. December-delivery gold was little changed at $1,060.90 an ounce on the Comex division of the New York Mercantile Exchange.
Thirteen of 25 traders, investors and analysts surveyed by Bloomberg, or 52 percent, said bullion would rise next week, as investors seek an alternative investment to a weakening dollar. Eight forecast lower prices and four were neutral.
The dollar tumbled to a 14-month low against the euro and is set for a third weekly drop ahead of reports that are forecast to show German business confidence increased and sales of existing U.S. homes rose. It was at $1.5029 per euro at 8:43 a.m. in Singapore, after reaching $1.5060 earlier, the weakest since August 2008.
Among other precious metals for immediate delivery, silver, platinum and palladium were all little changed at $17.68 an ounce, $1,367.50 an ounce and $336.75 an ounce respectively.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=anU.2pamK42M
Gold Falls in New York on Speculation Dollar Slump Will Stall
Oct. 21 (Bloomberg) -- Gold fell for the first time this week on speculation that the dollar’s decline will stall, eroding the appeal of the metal as an alternative asset.
The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, fluctuated from gains to losses today after rebounding yesterday from a 14-month low. Before today, gold advanced 20 percent this year in New York as the dollar index retreated 7.1 percent.
“Gold’s rally is really dependent on the dollar,” said Matt Zeman, a LaSalle Futures Group Inc. metals trader in Chicago. “If the dollar does stop hemorrhaging, that’s going to spell absolute doom for gold.”
Gold futures for December delivery dropped $2.80, or 0.3 percent, to $1,055.80 an ounce at 9:52 a.m. on the New York Mercantile Exchange’s Comex division. The metal reached a record $1,072 on Oct. 14.
Holdings of gold in exchange-traded products of ETF Securities Ltd. fell to 7.99 million ounces yesterday from 8.1 million ounces on Oct. 19, the company indicated today on its Web site. Gold held by the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, was unchanged at 1,109.31 metric tons as of Oct. 20.
“There’s no buying interest up here,” Zeman said. “If gold is no longer moving higher, people are going to get itchy fingers and get out.”
Record Longs
Hedge funds and other large speculators are holding a record net-long position, or bets on higher prices, in U.S. gold futures, data from the Commodity Futures Trading Commission show. The biggest bet among options traders is for gold to reach $1,200 by December.
“Most commodities are trading at overbought levels,” said Tom Pawlicki, an MF Global Inc. analyst in Chicago. A drop in prices would “give us the opportunity to re-enter the market from the long side,” he said.
Silver for December delivery declined 1.3 cents to $17.545 an ounce on the Comex. Before today, the metal had gained 55 percent this year.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aAYqH6jIIA08
Gold Falls as Rally, Dollar Rebound Encourage Investor Sales
Oct. 16 (Bloomberg) -- Gold fell in New York and London as some investors took advantage of a rebounding dollar to lock in gains from the precious metal’s rally to a record.
Bullion yesterday dropped the most in three weeks, and is heading for the first weekly decline in October. The U.S. Dollar Index, a six-currency gauge of the greenback’s value, gained as much as 0.6 percent today, ending a four-day decline. Gold may drop next week as its advance encourages some investors to sell the precious metal and erodes jewelry demand, a survey showed.
“Gold has rallied too fast,” Bernard Sin, head of currency and metals trading at bullion refiner MKS Finance SA in Geneva, said by phone today. “People right now are looking to buy on dips. The gold market will still be dollar-driven.”
December gold futures lost $6.20, or 0.6 percent, to $1,044.40 an ounce on the New York Mercantile Exchange’s Comex division by 8:27 a.m. local time. The metal slid 1.3 percent yesterday as record prices prompted selling, and is down 0.4 percent this week. Immediate-delivery bullion fell 0.6 percent to $1,043.72 in London.
“Gold needs to take a break before rising to new highs,” said Steve Chun, a trader with Hyundai Futures Corp. in Seoul. “Some investors are taking a cue from a temporary rise in the dollar to take profits on gold.”
Lower ‘Fixing’
The metal slipped to $1,047.75 an ounce in the morning “fixing” in London, used by some mining companies to sell production, from $1,053.50 at yesterday’s afternoon fixing. Nine of 16 traders, investors and analysts surveyed by Bloomberg News said bullion would fall next week. Five forecast a gain and two were neutral. Gold futures reached a record $1,072 on Oct. 14.
“We’ve seen some decent scrap selling, which is providing some resistance,” Walter de Wet, a London-based Standard Bank Ltd. analyst, said today by phone. “We may need to see some more dollar strength before we see a sizable correction in gold.”
Bullion may drop to $1,025 an ounce and then slide further toward $1,000, Commerzbank AG said in a report yesterday, citing recent trading patterns.
With a gain of 18 percent this year, gold futures are on course for a ninth annual climb as investors buy physical assets to hedge against the weaker dollar and the threat of inflation.
SPDR Holdings
Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, were unchanged for a sixth day at 1,109.31 metric tons yesterday, according to the company’s Web site. Assets in ETF Securities Ltd.’s exchange-traded products increased by 2,838 ounces to a record 8.503 million ounces yesterday, its Web site showed.
“The dollar’s downtrend remains intact, and so does gold’s uptrend,” said Hwang Il Doo, a senior trader with KEB Futures Co. in Seoul. “A pause in the dollar’s loss may provide an excuse for investors to take profits, which won’t of course alter the bullish outlook for precious metals.”
Gold will average $1,140 an ounce next year, up 8 percent from a previous estimate, as “strong investor inflows” boost prices, Standard Chartered Plc analysts including Dan Smith said today in a report. The bank raised its gold forecast for this quarter by 4.8 percent to $1,100 an ounce.
Silver for December delivery in New York dropped 0.9 percent to $17.26 an ounce. Platinum for January delivery fell 1 percent to $1,341.40 an ounce, while palladium for December delivery lost 0.2 percent to $327.50 an ounce.
ETF Securities’ palladium holdings climbed 1.4 percent to a record 544,752 ounces yesterday, its Web site showed.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aw_AD0Sc3Y2E
Just going to have to see where the chips fall...
Gold $1,049.60 continues downward trend in over night trading in Sydney and Hong Kong.
Silver up a little at $17.41
http://www.magyver.com/metals.htm
GLTA !!
Gold Falls as Rally to Record Signals Sell to Some Investors
Oct. 15 (Bloomberg) -- Gold fell the most in three weeks as a rally to a record yesterday spurred some investors to sell the precious metal.
The 14-day relative strength index for futures, a momentum indicator, failed to top last week’s peak as gold jumped to an all-time high of $1,072 an ounce in New York, a sign to some investors that prices may be headed lower. Demand for bullion also slowed as the dollar steadied against a basket of six major currencies, after rebounding from a 14-month low.
“This is technical selling near the record,” said Frank McGhee, the head dealer at Integrated Brokerage Services Inc. in Chicago. “A little dollar strength brought gold down,” after a slump in the currency this week fueled demand, he said.
Gold futures for December delivery fell $14.10, or 1.3 percent, to $1,050.60 an ounce on the New York Mercantile Exchange’s Comex division, the steepest drop since Sept. 24. The 14-day RSI was 72.86 yesterday after reaching 73.062 on Oct. 13, below last week’s high of 73.707, on Oct. 8.
Bullion for immediate delivery fell $13.50, or 1.3 percent, to $1,048.90 at 6:53 p.m. in London.
The metal’s spot price is heading for a ninth-consecutive annual increase, which would be the longest year-to-year rally since at least 1948.
The U.S. Dollar Index, which measures the greenback against six currencies, was little changed after earlier sliding to the lowest level since Aug. 8, 2008. The index has dropped 7.1 percent this year as bullion surged 19 percent in New York.
Too Expensive
Gold may be too expensive for some buyers, said Andrey Kryuchenkov, a VTB Capital analyst in London.
“October demand from India, traditionally supported by the Diwali festivities, should remain subdued at these prices,” Kryuchenkov said in a report.
The October-December period is the busiest season for jewelry sales in India, spurred by weddings and the Diwali Hindu festival. Financial markets in Mumbai are closed for the holiday on Oct. 19. India is the world’s biggest gold buyer.
The metal also fell after a government report showed the pace of U.S. consumer price increases slowed last month. Gold is often used as a hedge against accelerating inflation.
The 0.2 percent gain last month in the consumer-price index followed a 0.4 percent increase in August, as forecast, the Labor Department said today in Washington. Compared with a year earlier, consumer prices fell 1.3 percent.
Inflation Effects
“The inflation numbers took a little blush off gold,” Integrated Brokerage’s McGhee said. “Inflation is further up the road. Monetizing the debt is what creates the inflation of tomorrow, and the gold market has been anticipating that.”
President Barack Obama has increased U.S. marketable debt to a record $7.01 trillion as he borrows to revive growth in the world’s biggest economy. The Federal Reserve’s target rate for overnight bank loans remains in a range of zero to 0.25 percent, where it was set almost a year ago. U.S. policy makers may start raising the rate in the second quarter of next year, according to analysts’ forecasts compiled by Bloomberg.
“The dollar is for sale unless the Fed is very hawkish,” said Jonathan Gencher, the Bank of Montreal’s director of foreign-exchange sales in Toronto. “Only when the Fed starts to talk about the removal of stimulus or a rate hike can the dollar get a lasting bid.”
Bullion held by the SPDR Gold Trust, the biggest exchange- traded fund backed by the metal, were unchanged for a fifth day at 1,109.31 metric tons yesterday, according to the company’s Web site. Assets in ETF Securities Ltd.’s exchange-traded products rose 0.1 percent to a record 8.5 million ounces (264.4 metric tons) yesterday, its Web site showed.
Silver futures for December delivery in New York dropped 49.3 cents, or 2.8 percent, to $17.415 an ounce. The metal has rallied 54 percent this year, heading for the biggest annual gain since 1979.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a_RoQYQc9mQ8
Some nice action yesterday that held well
$1,063.90 - Gold up a little in Sydney and Hong Kong so far in overnight trading.
http://www.magyver.com/metals.htm
GLTA !!
Up over 23% so far this week..looks like she's turned!
Accumulating as I can....She has the makings of major imo
I'm gonna get more. This is gonna be a monster.
Back in the saddle now. Router went down and just got it running again. GL T.
GLTA !!
Coronado is moving agressively forward in their property aquisitions..I'm looking for an announcement within a week or two..
Copper Rises Most in Six Weeks on Dollar’s Drop, U.S. Jobs Data
Oct. 8 (Bloomberg) -- Copper prices rose the most in six weeks as the sagging dollar and upbeat economic data boosted speculation that demand for the metal used in pipes and wires will climb.
The dollar fell to the lowest level in almost 14 months against a basket of six major currencies. The number of Americans filing first-time claims for unemployment benefits dropped last week to the lowest level since January, U.S. government data showed today. Copper prices have doubled in 2009 after demand in the first half of the year increased in China.
“Copper is taking off with the weaker dollar and some renewed economic optimism,” said Donald Selkin, the chief market strategist at National Securities Corp. in New York. “The jobs numbers gave the market a boost.”
Copper futures for December delivery climbed 11.9 cents, or 4.3 percent, to $2.8985 a pound on the Comex division of the New York Mercantile Exchange, the biggest gain for a most-active contract since Aug. 21.
Supply concerns also bolstered copper, said Daniel Major, an analyst at RBS Global Banking & Markets in London.
BHP Billiton Ltd., the world’s largest miner, may take two weeks to investigate an accident at its Olympic Dam mine in Australia that forced the closing of the main hauling shaft. The company is still producing ore at Olympic Dam.
Chilean Mine
BHP also faces a potential strike at its Spence copper mine in Chile, where workers agreed to delay a walkout and extend wage talks to give the company time to revise a contract offer, a union official said yesterday. Employees will walk out on Oct. 13 should BHP refuse to improve its latest proposal, said Francisco Aravena, a union spokesman.
The strike “is unlikely to have a significant impact on supply-demand dynamics in the near term,” Major of RBS said.
More than 20 percent of copper-mine output is “at risk” over the next three to six months because of labor contract talks, Barclays Capital said yesterday.
Copper for delivery in three months rose 3.9 percent to $6,330 a metric ton ($2.87 a pound) on the London Metal Exchange.
Aluminum, nickel, tin, lead and zinc prices also rose in London.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aYvrFlmtJ2K8
.
NEWS! 10-08-09
Coronado Resources Ltd.
TSX VENTURE: CRD
Oct 08, 2009 13:39 ETSummary: Coronado Resources Ships Over 1,750 Ounces of Gold and Over 1.350 Million Pounds of Copper to Date
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 8, 2009) - Coronado Resources Ltd. (TSX VENTURE:CRD) is proud to report the mining summary from its 100% owned Madison high-grade gold copper project in Montana USA. Coronado commenced its high-grade gold and copper shipments in mid 2008 with the most recent grades averaging 0.47 oz/ton gold and 35% Cu ton.
Coronado Resources Ltd. has been proactive and operating the Madison mine during some of the most challenging economic times in recent history. During these times Coronado was able to sell its high-grade gold to Kinross and Golden Sunlight and sell its high-grade copper to China through H&H metals to pay for its ongoing development of the Madison project without any major share dilution and is now in a position to begin receiving a return on investment.
Since mid 2008 Coronado Resources Ltd. has shipped a total of 1,073 contained ounces of gold to Republic, WA and a total of 719 contained ounces of gold sent to Golden sunlight mine. This gives a total of 1,792 contained ounces of gold produced. In that same period Coronado managed to ship 1,362,063 pounds of copper to China through its New York based Broker H&H Metals.
Shipments are ongoing and will be reported on a per shipment basis.
Coronado Resources Ltd. is a Canadian based exploration and development mining company that is focused on its 100% owned Madison Gold/Copper property in Montana, USA. Madison is a former producer that is now producing cash flow from high grade shipments which commenced in 2008 with recent grades averaging 35% cu/ton and .47 au/oz/ton. The Madison region hosts well establish processing and mining infrastructure. The company remains focused on expanding the Madison project with continued exploration and development drilling from the cash flow from sales. Our proven management team is actively pursuing new mining opportunities for its shareholders.
On Behalf of the Board
Eugene Larabie, President
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CORONADO RESOURCES LTD.
CRD.V (TSX) - CRDAF (OTC/PK)
A PRODUCING JR. GOLD/COPPER/SILVER MINER!
<^> DAILY CHART <^>
<^> WEEKLY CHART <^>
<^> Highlights <^>
NO DEBT
FULLY DILUTED
PRODUCING GOLD AND COPPER
$$ IN THE BANK!
(according to company)
<^> PRESS RELEASES <^>
http://www.coronadoresourcesltd.com/NewsRelease-Sept10-09.pdf
http://www.coronadoresourcesltd.com/NewsRelease-July16-09.pdf
http://www.coronadoresourcesltd.com/NewsRelease-July08-09.pdf
http://www.coronadoresourcesltd.com/NewsRelease-May06-09.pdf
http://www.coronadoresourcesltd.com/NewsReleaseJan_28_09.pdf
<^> PROJECTS <^>
Madison Gold/Copper Property, Montana (July '09 update)
Coronado Resources Ltd. Has an option to acquire a 100% interest in six patented and twelve unpatented mineral claims known as the Madison Gold Property. The property is approximately 35 miles southeast of Butte, Montana near the town of Silver Star. The property contains old surface and underground mine workings.
The underground decline has been driven over 1,200 feet at a slope of 15% which was designed to access a high-grade zone of oxide gold to Level I and Level II and to allow access to a high grade Copper zone. The underground develpment also accessed a sulphide gold zone in Level 3. Drill stations have been placed at stages along the decline to provide for additional drilling from underground to further test the limits of the mineralization. The decline is large enough to accomodate ore trucks and underground drill rigs.
A crushing plant, power line, compressor and weigh scale have been installed on site to process the gold and copper mineralization encountered in underground development. The company has made three shipments in early 2008 of oxide gold mineralization to the Golden Sunlight Mine for custom milling. Copper shipments of 1304 tons grading over 20% cu were delivered to China in the Fall of 2008 to produce over 500,000 payable pounds.
In January 2009, the company signed and started shipping sulphide gold mineralization to the Kinross Mill in Washington state. In April and May of 2009, the company shipped over 1,000 tons of copper grading over 24% cu. In July, 2009 the company made a sold shipment of 400 tons grading .045 oz/ton gold.
From the 1880's to the 1950's the Broadway Mine had over 6,000 feet of lateral underground workings from a 1,000 foot shaft that had a vertical depth of 750 feet. Production is estimated at 450,000 tons of ore averaging 0.32 oz. (11.0 g/t) gold. In the 1980’s, an exploration drilling conducted northwest of the main Broadway underground workings. This was above a new zone being mined at the 900 level before the mine was closed in 1952. Drill programs were undertaken to outline a resource with an open pit design using lower grade mineralization cutoffs. The majority of the drill holes only tested the mineralization up to 400 feet in depth.
A Geological Summary Report to 43-101 standards was completed in August 2005. The writer concluded that “targets with relatively high grades of gold and copper exist within contact zones at the Madison Gold Property”. The report recommends exploring for continuation of excellent gold and copper grades seen in some holes and notes that many holes ended in gold or copper mineralization without determining the limits of the zone. The report also recommended conducting geophysics and deeper drilling of the porphyry target. Drill programs were undertaken in 2005 and 2006 to expand the high grade gold and copper zones.
Five holes were completed in 2005 with gold and copper intercepts encountered in all five holes. The most exciting results were intercepts of .380 and .354 oz/ton gold over 49 feet and 54.4 feet in two holes and an intercept of 27 feet of over 41% copper in the last hole. For complete assay results from the program see print flyer.
Drilling in 2006 tested the vertical and eastern extension of the mineralization of Hole C05 - 6. Additional drilling was undertaken to test the limits of other high-grade zones along the mineralized contact. Eight diamond drilling holes were completed in 2006.
True North Property, Ungava Region, Quebec
The Company acquired a 100% interest in 304 mining claims known as the Raglan 1 Property, comprising 30,775 acres, in May 2003. This property is immediately northwest at Falconbridge’s six year old Raglan Mine site and six outlined nickel/copper deposits. The nickel deposits in the Raglan Camp consist of clusters of sulphide lenses.
The Company entered into an agreement with Novawest Resources Inc, whereby Novawest can earn a 70% interest in the property by expending $620,000 over three years in exploration expenditures. Novawest renamed the claim group the True North Property.
CURRENT ASSAYS
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