NWM Mining Corp fka NWMMF

[the cork]

DJ Comex PRECIOUS METALS: Gold 1767.50, Silver 34.63, Copper 3.7272 Firm Dollar, Wider Weakness Weigh On Gold; Platinum Sinks
Sep 20, 2012 By Laura Clarke

Precious metals are lower in Europe on the back of a firmer U.S. Dollar and weaker commodity prices, with volatile trading expected in the sessions ahead.

At 0956 GMT, spot gold was 0.6% lower on the day at $1,758.88 a troy ounce.

Weakness in wider commodity and equity markets and the euro versus the dollar pressured gold prices lower in early trade; a stronger greenback not only making the dollar-denominated precious metals less appealing to foreign currency holders but also weakening their appeal as a hedge against dollar weakness.

"The rise in gold and silver will be tempered by drops in the stock market and rises in the dollar and if this continues then the upside is limited for the time being," said Marex Spectron head of precious metals David Govett.

"However, support remains under the market and I still believe buying dips is the way forward in the longer term...we are still a long way from the edge of the woods economically and this should keep gold prices underpinned," he added.

Gold and silver prices are consolidating after climbing higher following a stream of policy easing announcements from the world's central banks in recent weeks.

"Judging by the broader commodity market, QE3 euphoria from last week is now over," said VTB Capital analyst Andrey Kryuchenkov, although maintaining a bullish longer-term stance for spot gold, citing future currency weakness and inflation concerns on the horizon.

"We still expect gold to remain rangebound, below September highs, in choppy trading in the next few sessions...It is also important to keep an eye on developments in Spain as pressure mounts on Madrid to finally officially apply for a euro zone bailout," he added.

While gold and silver hold their ground in comparison, platinum sank in early trade, breaching support seen at $1,640/oz--as South African workers returned to mines operated by Lonmin Plc. Here too, however, analysts remain wary that the situation remains unresolved.

Platinum temporarily broke below the $1,600/oz level, trading around 8% down from Monday's peak, but still some 15% higher on its price before labor tensions escalated.

"The situation with regard to Lonmin remains volatile despite a wage agreement," said Ed Meir of INTL FCStone. "More importantly, Lonmin may have set a new bar for heftier wage settlements for other mining companies who can ill afford higher costs at this stage," he added.

In the mean time, analysts expect more nervous trading in the short-term as investors attempt to work out what to do next.

"Personally, I am fairly ambivalent towards prices here and would look to trade the range for the moment," said Mr. Govett.

Write to Laura Clarke at [e-mail]

(END) Dow Jones Newswires

09-20-12 0653ET

Copyright (c) 2012 Dow Jones & Company, Inc.


http://futures.tradingcharts.com/news/futures/DJ_PRECIOUS_METALS__Firm_Dollar__Wider_Weakness_Weigh_On_Gold__Platinum_Sinks_185875783.html