QMX Gold Corp. (fka QMXGF)

[the cork]

1377.40 up 11 bucks Gold Slides (???) as Dollar Strengthens After North, South Korea Exchange Fire
By Nicholas Larkin and Wendy Pugh - Nov 23, 2010 5:12 AM PT

Gold declined in London as the dollar strengthened after North and South Korea exchanged artillery fire. Other precious metals dropped, led by palladium.

The dollar gained against the euro as South Korea’s Joint Chiefs of Staff said in a statement that North Korea fired “several” artillery shells into the South near the two nations’ western border. Gold, which typically moves inversely to the greenback, reached a record $1,424.60 an ounce on Nov. 9. All six main industrial metals on the London Metal Exchange fell.

The stronger dollar “has an impact,” said Dan Smith, an analyst at Standard Chartered Plc in London. “A lot of commodities are off quite badly as people worry about the macro outlook.”

Immediate-delivery bullion lost $7.75, or 0.6 percent, to $1,358.70 an ounce at 12:44 p.m. in London. The metal for December delivery was little changed at $1,358.60 on the Comex in New York.

A South Korean Defense Ministry official, who declined to be identified, said the military has been put on high alert, scrambled fighter jets and will “respond strongly” to further provocation.

“Political risk is typically a positive for gold, but losses in commodities this morning are weighing on precious metals generally,” Edel Tully, an analyst at UBS AG in London, said in a report. With the U.S. Thanksgiving holiday this week, “the proximity of year-end and the nagging fear of Chinese tightening, it is likely that investors across asset classes will be tempted to accelerate their profit-taking,” she said.

Irish Aid

The euro also weakened against the dollar on speculation an election in Ireland will hinder the nation’s aid talks with the European Union and the International Monetary Fund. Irish Prime Minister Brian Cowen announced yesterday he will seek elections early next year. Ireland’s rescue package may total 95 billion euros ($129 billion), Goldman Sachs Group Inc. estimates.

China’s government in the past month stepped up a campaign to limit credit expansion after inflation quickened and property prices surged. China’s biggest banks are close to reaching annual lending quotas and plan to stop expanding their loan books to avoid exceeding the limits, according to four people with knowledge of the matter. Copper fell as much as 2.9 percent in London.

Gold assets in exchange-traded products fell 3.06 metric tons to 2,084.48 tons yesterday, according to data compiled by Bloomberg from 10 providers. Holdings reached a record 2,104.65 tons on Oct. 14. Silver holdings gained 62.3 tons to 14,878.6 tons, the highest amount since at least February, data from four providers show.

Silver for immediate delivery in London lost 2.7 percent to $27.1038 an ounce. It reached a 30-year high of $29.36 on Nov. 9 and is up 61 percent this year.

Palladium dropped 4.7 percent to $661.75 an ounce. Platinum was 1.2 percent lower at $1,641.50 an ounce.

http://www.bloomberg.com/news/2010-11-23/gold-retreats-as-concern-irish-election-may-stall-aid-talks-weakens-euro.html