QMX Gold Corp. (fka QMXGF)

[the cork]

1350.00 - Spot Gold Steady In Europe As Euro Stabilizes
LONDON, Nov 16, 2010 (Dow Jones Commodities News via Comtex) --
By Rhiannon Hoyle

Spot gold was trading steady in Europe Tuesday as the euro stabilized against the U.S. dollar, but market participants said the greenback's recent strength may hold back any resumption of the yellow metal's record-breaking rally in the near term.

At 0954 GMT, spot gold traded at $1,361.73 a troy ounce, up 0.1% on the day. The metal is $62.77, or 4.4%, off its latest record high set one week ago.

The EUR/USD traded unchanged at $1.3591. It is down around 2.4% on this time last week, however.

"While we still think that the overall actual environment, characterized by quantitative easing and inflation concerns, remains bullish for the precious metals, we wouldn't rule out further long liquidation in the immediate term with the dollar's strength creating a barrier to further gains for the time being," precious metal trading house MKS Finance said in a note.

Market players said that, while there has been some short covering emerging, investors have largely been liquidating long positions as the market takes a breather from its recent highs.

One London trader said the market has been fraught with indecision--with signs the U.S. economy may be strengthening and concerns over the sovereign debt situation in the euro zone pulling gold in different directions.

Other precious metals are trading mixed. Spot silver was up 0.8% at $25.650/oz, spot platinum was down 0.1% at $1,667/oz and spot palladium was up 0.1% at $670/oz.

The trader said the PGMs, platinum in particular, appear oversold and could see a rise in the near term.

Johnson Matthey is due to release its 2010 interim review Tuesday, which is expected to paint a very bullish picture, especially for the palladium market. Analysts said that, with palladium supplies having fallen into deficit this year, the shortfall of supply against demand is expected to widen in 2011.

-By Rhiannon Hoyle, Dow Jones Newswires; [phone]; [e-mail]

(END) Dow Jones Newswires

11-16-10 0511ET

http://news.tradingcharts.com/futures/7/9/148676597.html