Ocean Park Ventures - Industry News

Gold mining strikes plaguing companies worldwide

Wed, 13 Jun 2012 15:51:18 GMT

Gold One International has fired 1,035, more than half of its employees at its main Modder East unit in South Africa, for participating in what was referred to as an illegal strike action last week, according to a Bloomberg report.

In Johannesburg trading, Gold One dropped 3.9 percent to 3.70 on June 10, the news source stated, with its Sydney shares last trading on June 7 down 1.2 percent at 41.5 Australian cents.

The company announced on June 4 the work stoppage by day-shift miners who aligned themselves with the Professional Transport Allied Workers Union was unprotected and breached a three-year wage accord signed in April 2010, the news source stated.

Meanwhile, the Kinross Gold Corporation announced the strike at its Tasiast gold mine in Mauritania, which had been under way since June 5, has come to an end, according to a report from Dow Jones Newswires.

Kinross announced the employees participated in an "unlawful work stoppage" and that talks were in the process to settle "certain issues raised by employees."

Gold exploration and mining procedures are currently under way, without striking involved, in Alaska, British Columbia and the Sonora state of Mexico.

Gold ETF trends probed

Wed, 13 Jun 2012 15:34:00 GMT

A recent report from ETF Trends reveals that gold exchange traded funds climbed roughly 1 percent on June 12 due in part to fears overseas that the debt situation in Europe would worsen.

Also, the Spanish 10-year bond yields rose to a euro-era high, helping added to the increase in demand for gold ETFs.

Fitch reduced its credit ratings in Europe on 18 Spanish banks, the news source stated, and the nation's 10-year bond yields climbed to more than 6.8 percent, which is the highest level it has been at since the euro was introduced in 1999.

“We’re in uncharted territory,” Nick Stamenkovic, market strategist at RIA Capital Markets, told CNNMoney.

In the United States, gold futures rose higher on June 13, according to a report from MarketWatch. This marked the fourth session of ascension, which was attributed in part due to traders gauging expectations that the U.S. Federal Reserve would add further economic stimulus along with other central banks. Gold exploration never rests, as production remains high in Alaska, British Columbia and the Sonora state of Mexico, where copper is also produced.

Canadian stocks rally on gold mining stocks

Wed, 13 Jun 2012 15:33:56 GMT

A recent report from Reuters revealed that Canadian stocks posted their first gain in four sessions on June 12 due in part to gold mining stocks.

Pat McHugh, Canadian equity strategist at Manulife Asset Management, told the news source that overseas markets were up, with views that more programs that promote growth will come to the aid of the euro zone, which has been struggling as of late.

In addition, a new jet deal involving Bombardier helped push Canadian stocks.

"Their business jet business was decent, and this is just a cherry on top," Paul Hand, managing director at RBC Capital Markets, told the news source. "It's the commercial project that is the big question mark and has been the drag on the company."

A report from MarketWatch revealed the S&P/TSX Composite Index climbed 55 points, or 0.5 percent, on the heels of gold mining stocks. Gold exploration is an important part of production on a global basis, with several regions leading the way including Alaska, British Columbia and the Sonora state in Mexico.

Gold futures advance

Wed, 13 Jun 2012 15:31:54 GMT

In the United States, gold futures ended June 13 higher and extended their climb into the fourth session as traders assessed their prospects for further economic stimulus from the Federal Reserve and other central banks, according to MarketWatch.

For August delivery, gold climbed $5.60, or 0.4 percent, to end at $1,619.40 per ounce on the Comex division of the New York Stock Exchange, leading to a four-session climb of 2 percent, the news source stated.

“Gold is certainly holding price better than it did a few weeks ago, and a newer trendline, formed in early February, points to stability around the $1,600 level,” Richard Hastings, macro strategist at Global Hunter Securities, told the news source. “But the trend is down.”

In London, gold prices edged lower on June 12 due in part to worry over the situation in Europe, according to a report from Reuters. The metal edged under $1,590 per ounce on the day, the news source stated. Gold exploration is an important part of the local economies in the Sonora state of Mexico as well as in British Columbia and Alaska.

US gold prices rise

Tue, 12 Jun 2012 16:55:52 GMT

A June 12 report from Reuters revealed that gold rose for the day due in part to an increase in physical demand and uncertainty surrounding the euro zone.

This marked the third straight day of growth for the metal in the United States and it recovered from early losses as it ended up 0.6 percent to $1,605.10 per ounce, which was its largest one-day gain since June 1, the news source stated.

"We've seen demand pick up on the physical side here," David Meger, director of metals trading at Vision Financial Markets, told the news source. "Every time we dipped dramatically below $1,600, the market remains well-supported."

Meanwhile, gold futures in the United States for August delivery ended up $17 per ounce at $1,613.80 with trading volume roughly 40 percent under its 30-day average, the news source stated.

Gold prices did drop on June 11 in London due in part to the euro retreating and buyers interested in other assets. Gold exploration, however, remains rampant in the Sonora state of Mexico as well as in British Columbia and Alaska.

Central bankers buying up gold

Tue, 12 Jun 2012 15:08:56 GMT

According to a recent report from The Wall Street Journal, drastic changes are expected in the gold market, as the environment could favor long-term investors who purchase and then hold the metal for years instead of speculators who attempt to trade on a day-to-day basis.

In addition, the news source states that central bankers are buying gold en masse and have increased their gold accumulations by 400 metric tons, which is equal to about 2,205 pounds over the past year.

“I think we’ll see more volatility in gold because of the absence of speculators,” George Gero, a precious-metals strategist at RBC Capital Markets in New York, told the news source. “The best way to play gold is as a long-term investor as a hedge against loss of purchasing power of paper money."

In a recent report for Forbes, Agustino Fontevecchia said investors should purchase gold in response to U.S. Federal Reserve Chairman Ben Bernanke's stance and should not buy it to hedge the situation in the euro zone and its crisis risk. Gold exploration is an essential part of various economies throughout the world as well as the global economy on whole. Mining operations are underway in the Sonora state of Mexico as well as in Alaska and British Columbia.

Gold prices drop to begin the week

Mon, 11 Jun 2012 16:48:53 GMT

A June 11 report from Reuters revealed that gold prices fell on the day due in part to the euro retreating and buyers flocking to other assets.

The precious metal benefited from early gains due to European ministers agreeing to a $125 billion deal to help Spanish banks, but ended down 0.6 percent to $1,584.40 per ounce with U.S. gold futures for August delivery down $5.20 per ounce, the news source stated.

"What is going on in Europe doesn't seem to affect gold as much as you would have thought six months ago," Macquarie analyst Hayden Atkins told the news source. "It's really a QE trade - anything else is met with ambivalence. The most visible physical investment flows aren't particularly strong."

Also on June 11, copper grew the most in more than four months due in part to imports in China - the biggest consumer of the metal - climbing 12 percent in May and also due to Spain's bailout request. Copper and gold exploration are prevalent in the Sonora state of Mexico and gold mining is also found in Alaska as well as in British Columbia in Canada.

Indian gold prices expected to rebound this week

Mon, 11 Jun 2012 16:48:43 GMT

A recent report from Reuters reveals that Indian gold is expected to recover this week due in part to a further drop of the rupee and the return of risk appetite for the precious metal.

Indian gold futures, the most active gold for August delivery on the Multi Commodity Exchange, climbed 0.44 percent to 29,673 rupees per 10 grams after last week's losses of roughly 2 percent, the news source stated.

"Buying at support of 29,400/29,450 in gold could be a good strategy," Pranav Mer, senior analyst with Mangal Keshav, told the news source.

In addition, silver futures are expected to follow gold as buying is advised in the metal at 54,200 rupees with a target of 55,250 rupees, Gnanasekar Thiagarajan, director at Commtrendz Research, told the news source.

A recent report from MarketWatch revealed that the gold crowd and stock analysts could be getting India wrong. Nigam Arora writes that equity strategists are currently bearish on India in the short term, but that may not necessarily be the case. Gold exploration is available for import in India and is produced throughout the world including in the Sonora state of Mexico, British Columbia and Alaska.

Gold continues decline

Fri, 08 Jun 2012 16:40:30 GMT

After early signs that gold would stay high over the past few days, the metal continued its descent on June 8, according to Reuters.

Prior to the announcement from the U.S. Federal Reserve, gold rose steadily but has dropped since the announcement that the Fed would not step in and provide further economic stimulus for the U.S. economy unless the situation worsens.

"The fact that the Fed didn't hint at monetary easing has weighed a lot on gold, and of course in this scenario of risk aversion, the (inverted) correlation with the dollar was restored and is having an impact today," consultant Gianclaudio Torlizzi from T-Commodity told the news source. "The outlook for precious metals in the medium-term, however, remains positive because the central banks will have to undertake an expansive monetary policy sooner or later."

Spot gold was at $1,577.30 per ounce, down nearly 1 percent from the day before, the news source stated.

Meanwhile, spot silver dropped just slightly at 0.01 percent and gold for August delivery on the Comex division of the New York Mercantile Exchange climbed 1.70 percent. Gold exploration continues to be a main part of the economies in the Sonora state of Mexico, Alaska and British Columbia.

Gold mining strike ends

Fri, 08 Jun 2012 16:40:21 GMT

The Compania de Minas Buenaventura gold mining company announced on June 8 that a strike affecting its Orcopampa mine is over, according to a report from MarketWatch.

Although a union leader announced that plans to walk off the job at the company's silver mine in Uchucchacua have been suspended, the Orcopampa gold mine appears ready to swing back into operation after the strike, which started on May 26, began with demands that featured an increase in pay, the news source stated.

Set in the department of Arequipa, the Orcopampa mine produced 69,265 ounces of gold in the first quarter of this year alone, the news source stated.

"Our base has already approved the plan to strike, we are in the list of demands and the company gives no solution," Lorenzo Zuniga, a labor leader at Uchucchacua, told Reuters in a telephone interview after the start of the strike.

Mining operations continue in metal-rich regions, sans strike and other hassles. In the Sonora state of Mexico, gold exploration is thriving, as well as in British Columbia in Canada and Alaska.

Experts predict the fate of gold over the next week

Fri, 08 Jun 2012 16:37:57 GMT

The results of a new survey on the price of gold reveal little insight on its direction over the next week.

The Kitco News Gold Survey revealed that out of 33 participants, 27 responded this week and of those 27, 13 envision gold prices rising and nine see them dropping with five neutral, according to a Forbes report.

“China and Australia see it and are acting," Bill Goldman for 3GF Corporation, told the news source. "The U.S. and Euro authorities will do so too."

The survey also found that 48.2 percent of respondents see gold going bullish, 33 percent see it going bearish and 18.5 percent are neutral, the news source stated.

In India, gold reversed its early losses as the rupee helped push it along, according to a report from Reuters. However, gold sales have dropped 70 percent compared to last year, Haresh Acharya, head of the bullion desk at Parker Bullion in Ahmedabad, told the news source.

Gold exploration is rampant in various areas around the world, including in the Sonora state of Mexico and in Alaska as well as in British Columbia.

Gold rises prior to Bernanke comments

Thu, 07 Jun 2012 16:29:15 GMT

Gold continues its ascent on June 7 as a Chinese rate cut damaged the U.S. dollar and investors prepared for a Federal Reserve statement later in the day, according to a report from Reuters.

The precious metal climbed back toward $1,625 per ounce on the day as the Federal Reserve will address the future direction of the monetary policy in the United States.

"Some of the poor U.S. data has got people thinking that there is going to be another round of quantitative easing sooner rather than later," Citigroup analyst David Wilson told the news source. "I suspect Bernanke will at least soften his tone towards QE. I'm still optimistic for the second half of the year, on the expectations that we will see a weaker dollar through quantitative easing."

This is the second straight day that gold has shown signs of strengthening, but it is still in its longest slump overall in more than 10 years. According to a Bloomberg report, gold has been affected by dollar and bonds. However, gold exploration continues to boost production in the Sonora state of Mexico as well as in British Columbia and Alaska.

Gold drops after early gains due to Bernanke comments

Thu, 07 Jun 2012 16:26:10 GMT

According to a June 7 report from Reuters, global markets are seeing a rise in stocks as gold fell off after an early rise in the midst of Federal Reserve Chairman Ben Bernanke announcing there may not be further stimulus to the U.S. economy.

After an early rise to start the day, gold dropped 2 percent as investors were alarmed by Bernanke's comments that despite slow job growth and other economic factors, there would not be stimulus, which is what investors had hoped for.

"People had built up this hope that something significant was going to happen, and perhaps that was disappointing," Stephen Massocca, managing director at Wedbush Morgan in San Francisco, told the news source.

In a testimony to Congress, Bernanke said the Fed was ready to protect the economy if financial troubles continued.

An earlier Reuters report found that gold continued to rise on the morning of June 7 as investors were prepared for Bernanke to announce further economic stimulus. Still, gold exploration and production continues in the Sonora state of Mexico as well as in Alaska and British Columbia.

Gold hits one-month high

Wed, 06 Jun 2012 16:53:20 GMT

The price of gold reached a new one-month high on June 6 due in part to the euro and stocks rallying, according to Reuters.

The euro continued its early gains against the dollar following the interest rates remaining unchanged by the European Central Bank, which all helped push gold over the hump to a 1.1 percent gain to $1,635.70 per ounce, the news source stated.

"(The stronger euro) is good news for gold, and the drop in bond yields we've seen over the last few weeks is also good news for gold," Credit Suisse analyst Tobias Merath told the news source. "But the correction we have seen over the last few months has gone too far to just be dismissed. The overall technical background for gold is no longer that positive."

Other metals posted strong numbers on June 6, with spot silver rising 0.31 percent and silver on the Comex division of the New York Mercantile Exchange posting a 0.40 percent increase, a separate report from Reuters revealed.

Gold exploration is a vital part of production and stocks and is an important part of the economies in the Sonora state of Mexico, British Columbia and Alaska.

Gold ETFs explored

Wed, 06 Jun 2012 16:53:09 GMT

A recent report from GoldETFs.biz outlined what a gold exchange-traded fund is and how to use it in investing.

The report states that there are a number of gold ETFs available to investors, including stock-focused, physical, leveraged and inverse, and those who are interested in investing in a gold ETF should familiarize themselves with the market.

"Currently there are over 20 gold ETF products in the U.S. market containing more than $80 billion in assets," said Christian Magoon, publisher of GoldETFs.biz. "We often find that investors are overwhelmed by the many choices and are usually looking for a simple way to track gold prices through an ETF. We wrote this article as a convenient and straightforward resource for those in need of guidance."

Another factor to take into account is gold prices. According to a report from Bloomberg Businessweek, gold futures climbed in New York for the second time in three sessions on June 5 as speculation of the world's economic growth factored into the equation. Gold exploration remains thriving in Alaska, British Columbia and the Sonora state of Mexico.

India selling off gold

Tue, 05 Jun 2012 17:38:12 GMT

According to a recent report from Bloomberg Businessweek, gold is being sold in an aggressive manner in India, with prices closing in on record highs.

The world's biggest importer of the metal, India and its consumers are trying to get rid of the metal as it climbed to a record high on June 2, with the rupee dropping to a new all-time low compared to the dollar, the news source stated.

“In some areas consumers are selling more than jewelers,” Bachhraj Bamalwa, chairman of the All India Gems & Jewellery Trade Federation, told the news source. “They are selling aggressively.”

In addition to gold exploration and prices worldwide, other precious metals factor into the global economy. Copper grew on June 5 for the first time in five days, according to a report from Bloomberg Businessweek. The growth was attributed in part to speculation that worldwide policy makers will take the measures necessary to stimulate economic growth. Copper mining stocks continue to fluctuate on a daily basis, but production remains a vital part of the economy in Sonora, Mexico, where gold production is also prevalent. Gold production is also common in Alaska and British Columbia in Canada.

Gold continues to steady after big start to June

Tue, 05 Jun 2012 17:38:05 GMT

Gold remained steady on June 5 and recovered from earlier losses attributed to weakness of the euro and a greater attention paid to the slow growth of the U.S. economy, according to Reuters.

Last week, gold posted its largest one-day rise in more than three years on June 1 but has since steadied, both to start the week on June 4 and again on June 5, the news source stated.

"On Friday the (jobs) report stimulated anticipation of more monetary easing going ahead," Bayram Dincer, an analyst at LGT Capital Management, told the news source. "There was a lot of bad news from macro figures and from the political side that accumulated during May, but gold didn't react as it should from a safe-haven asset perspective. We are now seeing this correlation to risk sentiment and risky assets weakening a little, and even breaking."

According to a report from Resource Investor, the gold imports recorded in Iran, from Turkey, climbed in April. The metal continues to consolidate higher than $1,600 per ounce following its 4 percent growth on June 1 as jobs data disappointed. In the Sonora state of Mexico gold exploration is rampant as well as in Alaska and British Columbia in Canada.

Gold rallies to end the week

Tue, 05 Jun 2012 15:01:08 GMT

A June 1 report from Reuters revealed that gold rallied more than 2 percent on the day, climbing above $1,600 per ounce.

The rise came in part from U.S. jobs data, revealing a much weaker than expected showing, which reignited speculation that authorities could release another round of monetary easing in order to spark growth, the news source stated.

"(The data was) very poor and confirmed the midcycle slowdown in the United States," Saxo Bank vice president Ole Hansen told the news source. "Whether it will be enough to change the mind of the Fed towards additional QE remains to be seen. At least the gold market believes it could happen. All markets are considerably oversold, especially against the dollar."

Gold production is suffering in some parts of the globe due to political unrest. The mining protests in Peru have affected the local government as lawmakers in President Ollanta Humala's ruling Gana Peru party called for the prime minister's resignation. Meanwhile, gold exploration continues hassle-free in the Sonora state of Mexico as well as in British Columbia and Alaska.

Copper falls to end the week

Tue, 05 Jun 2012 15:01:04 GMT

According to a recent report from the Dow Jones Newswires, copper dropped due in part to data surrounding the U.S. economy.

Copper on the Comex division of the New York Mercantile Exchange dropped 4.6 cents, or 1.4 percent, to $3.3195 per pound on June 1 with weaker than expected jobs data in the United States showing slowed growth, the news source stated.

"Expectations were for a bad report, and that's certainly what we got," Frank Lesh, a broker with FuturePath Trading, told the news source. "Our worst fears are being realized, that Europe is going to drag us all down."

Copper dropped as low as $3.30 per pound, which was the lowest intraday price since December 20, the news source stated.

Peru is currently experiencing turmoil with its gold mines as well as in its political system, but a recent report from Bloomberg revealed that copper producers in the country have not yet been negatively affected by the strike. However, copper mining stocks continue to fluctuate and production remains stress-free in the Sonora state of Mexico.

Analyst expects gold mining stocks to pick up over next year and a half

Tue, 05 Jun 2012 15:01:00 GMT

In a note issued recently to investors, an analyst at Sterne Agee said they should pick up shares of some gold mining companies.

According to CBS Money Watch, analyst Michael Dudas predicts that gold prices will continue to rebound and hit new highs over the next 18 months as gold for August delivery grew by $57.90, or 4 percent to $1,622.10 an ounce on June 1.

"Despite many precious metals equities enjoying one of the best price movements on Friday, we believe investors have yet to fully recognize the relative attractiveness of these shares given the sharp price correction seen since February 2012, above-average dividend yields and prospects of improved cash flow generation," Dudas wrote in the note to investors.

However, not all sources are optimistic about gold's potential for growth. The recently released Paragon Report found that gold stocks could struggle and prices could lose 1.1 percent over the rest of this year. Research found that gold prices, as of May 29, dropped 7 percent for the month.

Gold exploration is a growing industry in certain parts of the globe, however, including in the Sonora state of Mexico, in Alaska and in British Columbia.

Gold eases off early rally to start the week

Mon, 04 Jun 2012 16:57:54 GMT

According to Reuters, gold began the week settling down following a rally caused by U.S. data on June 4.

The precious metal ended last week growing 4.3 percent on Friday despite large sell-offs following unexpectedly underwhelming data related to U.S. payrolls and reports that further stimulus may be pursued to spur growth in the economy, the news source stated.

"We had a non-farm payrolls number that came in far below expectations, and also a rise in the unemployment rate," Peter Fertig, a consultant at Quantitative Commodity Research, told the news source. "That could give some incentive for the voting members of the Federal Open Market Committee (to act)."

According to the recently released Paragon Report, which offers market research that is focused on equities and offer growth, gold stocks continue to struggle as prices have dropped by 1.1 percent so far in 2012. In addition, gold exploration continues to drive production in regions like Sonora in Mexico, Alaska and British Columbia in Canada.

Gold prices hit new high in India

Fri, 01 Jun 2012 16:32:37 GMT

According to a June 1 report from Reuters, gold prices in India hit a record high for the day but are still behind gains seen overseas.

The news source stated that India is one of the world's leading consumers of gold and that industry officials predict the high price will further inhibit demand, which already dropped 29 percent on a year-over-year basis in the first quarter this year.

"We are entering in lean season with record high price. So, obviously we will see sharp drop in demand in next two months," a member of Bombay Bullion Association, who declined to be named, told the news source.

The most active June delivery on the Multi Commodity Exchange was up 29,469 rupees, or 1.1 percent, the news source stated.

According to a separate Reuters report, gold on a global basis climbed higher on May 31 due to expectations of an Irish vote in favor of Europe's fiscal pact that boosted the euro. Meanwhile, gold exploration continues in Alaska, British Columbia and the Sonora state in Mexico.

Copper gains slightly but still losing in May

Thu, 31 May 2012 17:06:17 GMT

According to a May 31 report from Reuters, London copper recouped some ground after it dropped to its lowest level in 2012 due in part to rising fears surrounding the debt crisis in Europe.

The news source stated that copper has dropped nearly 11 percent in May, marking its third consecutive month of declines, and is 15 percent from this year's peak of $8,765, but it did show some slight gains for the day.

"The uncertainties in Europe are keeping everyone cautious today," a Shanghai-based copper investor told the news source. "There is just too much that can potentially go wrong in the region right now and no one dares to go too long."

According to a recent report from MarketWatch, China, which has long been the largest consumer and net importer of copper, has not dealt much in exporting large quantities of the metal but Jiangxi Copper International Trading Company announced it would join others in exporting refined copper. Copper mining stocks continue to ebb and flow with the global markets, but production remains a vital part of the economy in the Sonora region of Mexico.

Peru lawmakers call for prime minister's resignation amid mining protests

Thu, 31 May 2012 17:06:13 GMT

The mining protests in Peru are now affecting the local government as lawmakers in President Ollanta Humala's ruling Gana Peru party have called for the prime minister's resignation, according to the Dow Jones Newswires.

The protests have turned violent as mining operations of Xstrata PLC, an Anglo-Swiss company, have reached a fevered pitch and gold mining operations continue to suffer as the result.

"As representatives of Cuzco, we clearly and firmly ask that the prime minister resign immediately," Congressman Ruben Coa said during a press conference.

Gana Peru's Congressional Spokesman Fredy Otarola added his support for the prime minister in response to the statement.

But not all the mining operations have been negatively affected in Peru. According to a recent report from Bloomberg, copper producers in the nation have not been negatively affected by the recent unrest. However, copper production remains unaffected by protest in the Sonora region of Mexico where gold exploration is also rampant. Gold production is also fruitful in Alaska as well as in British Columbia, Canada.

Gold ready for worst May in three decades

Thu, 31 May 2012 17:06:09 GMT

A recent report from Reuters reveals that gold is set for its worst May in more than three decades.

The news source stated that the precious metal rose higher than $1,565 per ounce on May 31 due in part to softer growth numbers in the United States, but that will not offset its significant drop in recent weeks that have put it at a new 30-year low for May.

"Gold went straight down with the other commodities and equities because of high risk aversion," Commerzbank analyst Daniel Briesemann told the news source. "But in theory, that should actually be an argument for rising gold prices. The very firm U.S. dollar is keeping gold in check for the moment. But once we see a reversal there, which could happen at any time, we'll probably see much higher gold prices."

The slight increase comes after two straight days of decline following a weaker euro and increasing concern over the debt crisis in the euro zone and in Spain. Gold exploration continues to ramp up, however, in the Sonora region of Mexico as well as in British Columbia and in Alaska.

Peru copper mines unaffected by strike

Thu, 31 May 2012 14:31:35 GMT

Copper producers in Peru have not been negatively affected by recent unrest and a strike in the region, according to Bloomberg.

One of the largest copper producers in the world announced that its Tintaya mine in Peru is operating normally following community protests that led to four dead and authorities announcing a state of emergency, the news source stated.

“Production from our Tintaya operation has not been impacted by recent protest action,” a unit of the Zug, a Switzerland-based company, told the news source in an emailed response to questions. “Tintaya is able to deliver to port.”

According to a recent report from Reuters, a union in Peru has approved the plan to strike at the Buenaventura mine as workers at the silver mine Uchucchacua approved the plan to strike and joined those who had already put down their tools at the Orcopampa gold mine on May 28, the news source stated.

Copper mining stocks are fluctuating on a daily basis but production remains unaffected in the Sonora region of Mexico.

Gold declines for second consecutive day

Wed, 30 May 2012 16:33:15 GMT

Gold prices dropped for a second straight day on May 30 due in part to a weaker euro and the increasing debt crisis in the euro zone and Spain, according to Reuters.

Spot gold was down 0.5 percent to $1,547.39 per ounce by 6:21 a.m. Eastern time on May 30, as the price fell by nearly 7 percent in May overall, which left it at its worst mark since December when it dropped by nearly 11 percent, the news source stated.

"As we've seen during other periods of extreme risk aversion, investors go into Treasury bonds, which are yielding record lows, or they stay in cash," Robin Bhar, an analyst at Societe Generale, told the news source. "It's preservation of capital ... so for the moment, gold is unloved, but I think it means if you are still a bull, you will get better levels at which to express that."

Gold buying in India recently dropped due to a rise in prices in the nation. According to Reuters, on May 29, gold demand at Indian spot market remained calm due in part to a weak rupee. Gold exploration has the advantage in several markets with production high in the Sonora region of Mexico as well as in Alaska and British Columbia, Canada.

Copper futures drop

Wed, 30 May 2012 16:33:08 GMT

According to a report from The Wall Street Journal, copper futures fell to a new low this year on May 30.

For July delivery, the most actively traded copper contract dropped 7.2 cents, or 2.1 percent, to rest at $3.39 per pound on the Comex division of the New York Mercantile Exchange, the news source stated. This is the lowest settlement price since the end of December.

"Market participants remain risk averse, particularly in the run-up to Greek elections (set for next month)," VTB Capital analyst Andrey Kryuchenkov said in a note.

Traders with RBC Capital Markets said in a note that industrial metals "endured another pasting today as the European debt crisis continues to escalate," the news source stated.

In the short term, a separate report from Bloomberg revealed that for a second day after China's official Xinhua News Agency reported the nation had no plans to introduce stimulus measures, copper dropped. Copper mining stocks continue to fluctuate and production remains a vital part of the economy in the Sonora region of Mexico.

Peru miners to go on strike

Tue, 29 May 2012 16:42:53 GMT

A union in Peru has approved the plan to strike at the Buenaventura mine, according to a Reuters report.

Workers at the Peruvian silver mine Uchucchacua approved the plan to go on strike and to decided to join those who already put down their tools at the Orcopampa gold mine as of Monday, May 28, the news source stated.

The Uchucchacua mine produced 296,403 kilograms of silver last year alone and the gold mine, Orcopampa, produced 8.1 million fine grams of gold and was already starting its strike on Saturday, the news source stated.

Although strikes happen at gold and silver mines across the United States, it does not take away from the fact that it hinders the industry overall as well as production volumes. However, gold exploration and production remain unaffected in metal-rich regions like Sonora, Mexico, Alaska and British Columbia in Canada.

Asian trading holds off on gold

Fri, 25 May 2012 16:18:47 GMT

A recent report from the Dow Jones Newswires reveals gold dropped in Asian trading on May 25 because investors holding off as the result of the debt crisis taking place in the euro zone.

According to the news source, spot gold was trading at $1,553.37 per troy ounce, which was down 0.3 percent from its previous settlement and 2.5 percent from when it started the week.

"The latest International Monetary Fund figures show that global central banks continue to accumulate gold, especially the central bank of the Philippines, which bought approximately 1 million ounces during April," Triland analysts said, according to the news source.

Meanwhile, the recently released Paragon Report expects gold demand to surge in China for the remainder of the year. The report, which provides market research focused on equities that offer growth, found the Chinese nation's gold demand could rise by as much as 30 percent over the course of the year. Gold exploration remains a vital part of the economies in the Sonora region of Mexico as well as in Alaska and British Columbia.

Canadian stocks continue to gain from gold mining data

Fri, 25 May 2012 16:18:41 GMT

In Canada, stocks changed little as of May 25 but gains in gold mining helped offset weak data in the euro zone and the United States, according to a report from Reuters.

Gold mining stocks from the nation's leading mines, some of which are housed in British Columbia, helped boost Toronto Stock Exchange's S&P/TSX composite index, which rallied 300 points on May 23 to finish significantly higher.

"The swings are showing how nervous the European situation is overshadowing our markets," Rick Meslin, head of Canadian equities at UBS Securities Canada, told the news source. "It can be great news or awful news and it happens moment by moment."

According to a separate report from Reuters, gold barely moved on May 25 in the United States and as it stands, the precious metal stands to drop by 6 percent for the month of May as it holds near $1,560 per ounce. The main reason for the loss in May was ongoing fears surrounding the debt crisis in Europe and other weak global economic data. However, gold exploration is still taking place in the Sonora region of Mexico as well as in British Columbia and Alaska where production remains high.

Gold demand expected to surge in China

Thu, 24 May 2012 16:48:57 GMT

The recently released Paragon Report, which provides market research focused on equities that offer growth, reveals gold demand in China could rise by as much as 30 percent this year.

If the anticipated growth is met, China would become the world's largest gold market on an annual basis as it may increase from 769.8 tons in 2011 to somewhere between 900 metric tons and 1,000 tons in 2012, said Albert Cheng, the Far East managing director at the World Gold Council.

"We are confident China will become the largest source of demand for gold this year," Cheng said. "Over the next two to five years, China and India will go neck to neck and may account for more than 50 percent of world demand."

On May 24, the price of gold rallied after three straight day of declines, according to The Wall Street Journal. For June delivery, the precious metal was up $26.30, or 1.7 percent, to $1,574.70 per troy ounce on the Comex division of the New York Mercantile Exchange.

Gold exploration and production remains a vital part of the economies in the Sonora region of Mexico, Alaska and British Columbia, Canada.

Gold mining stocks help Toronto's main stock index

Thu, 24 May 2012 16:48:52 GMT

Gold mining stocks contributed to pushing Toronto's main stock index higher on May 24 despite the continuing debt crisis in the euro zone and data analysis showing a weakening global economy, according to a Reuters report.

This marked the second straight day that gold mining stocks rallied as bullion stopped its three day long slide and climbed 1 percent due in part to data from the International Monetary Fund revealing another rise in central bank gold holdings for April, the news source stated.

"Gold does carry a big weight in the index," Sid Mokhtari, market technician and director, institutional equity research at CIBC World Markets, told the news source. "The market is looking for a reason to be able to rally off very oversold conditions."

However, unrest overseas is offsetting any major gains that gold mining stocks and the main stock index as a whole could make. Mike Newton, associate director and portfolio manager at Macquarie Private Wealth, told Reuters that people are far too concerned with the situation in Greece to commit any substantial funds.

However, gold exploration remains high in British Columbia as well as in the Sonora region of Mexico and Alaska.

Gold continues drop

Wed, 23 May 2012 18:03:53 GMT

The price of gold fell again on May 23 due in part to declines in the euro and investors responding to the debt crisis in Europe, according to The Wall Street Journal.

For June delivery, the precious metal dropped $28.20, or 1.8 percent, to $1,563.80 per troy ounce on the Comex division of the New York Mercantile Exchange, the news source stated.

"The onslaught by the stronger dollar continues," Standard Bank Analyst Marc Ground said in a note. "The fuel for this dollar strength is concerns over the euro zone."

In addition, the ICE U.S. Dollar Index rose early May 23 to as high as 81.913, which was the highest mark it's reached since September 2010.

Gold has struggled in recent weeks due mostly to turmoil in Greece and debt issues overseas. According to Kitco News, silver is also on a downward trend with July futures in the midst of an 11-week downtrend on the daily bar chart. Silver mining stocks fluctuate on a daily basis but production remains high in the Sonora region of Mexico as well as in Alaska and British Columbia, Canada.

Gold mining stocks help Canada stocks

Wed, 23 May 2012 18:03:42 GMT

The main stock index in Toronto recovered after early losses on May 23 as gold miners rallied and offset declines caused by turmoil in Greece and the euro zone, according to Reuters.

The sub index of gold miners in Canada climbed more than 2 percent with a drop in bullion closing essential technical support levels to around $1,525 per ounce, which led to the buying of oversold gold stocks, the news source stated.

"People are way too concerned with Greece to be committing any money," Mike Newton, associate director and portfolio manager at Macquarie Private Wealth, told the news source.

Gains were led by some of the top gold producers in the country with increases of 3.6 percent and 4.5 percent but the market also experienced losses of more than 22 percent from another leading gold mining company.

According to The Wall Street Journal, gold futures on the Comex division of the New York Mercantle Exchange dropped 2.6 percent per troy ounce on May 23. Meanwhile, gold exploration and production remain rampant in Alaska, the Sonora region of Mexico and in British Columbia, Canada.

Gold softens after several days of growth

Tue, 22 May 2012 17:19:42 GMT

Despite three straight days of advancement, gold was under pressure for the first part of May 22 due in part to a weaker euro and other factors, according to Reuters.

Spot gold was down 0.63 percent to $1,576.21 per ounce and gold futures for June delivery in the United States were down $6.10 or 0.38 percent to $1,582.60, the news source stated, as investors bet against a meeting this week with European leaders to discuss the debt crisis that is putting the region in turmoil.

"Attention is being focused upon the EU summit meeting this week at which Greece shall be the main... and perhaps the sole... talking point," said analyst Dennis Gartman in his daily note, The Gartman letter.

According to a report from Kitco News, the market was also negatively affected overnight when the Fitch credit rating agency downgraded the sovereign debt rating in Japan as the result of a growing public sector debt amount.

Meanwhile, gold exploration, mining and production remain rampant around the world. The metal is routinely mined in Alaska and British Columbia as well as in the Sonora region of Mexico where copper is also prevalent.

Copper prices steady

Tue, 22 May 2012 17:19:35 GMT

The price of copper steadied on May 22 as China announced it will put its infrastructure investments on the fast track, according to Reuters.

China is the top consumer of copper and its recent announcement helped offset a stronger dollar and uncertainty that Europe's debt crisis will be resolved anytime soon, the news source stated. Three-month copper on the London Metal Exchange dropped to $7,741 from the high of $7,816 per metric ton it reached earlier in the day.

"I would have thought this would have been more bullish for the market," Standard Chartered analyst Dan Smith, told the news source. "It shows that sentiment is not terribly bullish at the moment for the metals market. You've got one potentially very bullish event set against continued worries about the outlook."

According to a separate report from The Wall Street Journal, copper on the Comex division of the New York Mercantile Exchange declined 0.4 percent on May 22 due in part to mixed economic reports from the United States. However, copper mining stocks continue to fluctuate, while mining and production remains fruitful in the Sonora region of Mexico.

Canadian stocks rise on gold mining data

Sat, 19 May 2012 13:37:38 GMT

Canadian stocks rose on May 18 due in part to the production from gold mining countries throughout the country.

According to Reuters, the main stock index in Canada climbed on Friday with gold miners and energy firms rallying from concerns over a banking crisis in Spain and speculation about Greece's future in the euro zone.

"Gold stocks are responding nicely to the performance of the gold commodity," Sid Mokhtari, director of institutional equity research at CIBC World Markets, told the news source. "Everybody was expecting gold to go lower from these levels, but it has managed to hold very well."

Mokhtari added there is still talk about the downgrades from the banking sector throughout Europe forcing investors to consider sitting it out.

In the United States, gold prices rallied to snap a two-week run of weekly losses and climbed once again. Gold exploration is producing returns in Alaska, as well as British Columbia, Canada and in the Sonora region of Mexico where copper is also mined successfully.

Gold continues rise to end the week

Sat, 19 May 2012 13:37:29 GMT

The price of gold rose 1 percent on May 18, according to Reuters, as it inched closer to a weekly gain after a significant stretch of losses.

The metal is now on track to break its two-week run of weekly losses despite starting the week flirting with five-month lows. According to the news source, spot gold is now valued at $1,591.10 per ounce and gold futures for June delivery were up $16.50 per ounce to $1,591.40.

"For the first time in ages yesterday, gold divorced itself from the euro and started to improve on the crosses," Simon Weeks, head of precious metal at the Bank of Nova Scotia, told the news source . "A lot of blame for the move has been laid at the door of (Thursday's weaker than expected) Philly Fed numbers, but I think the market was overcooked on the downside and having held above $1,522 was ripe for a bounce."

Gold production is prevalent around the world. In Africa, governments are considering giving mining companies a momentary tax break as they mull whether or not to initiate tax hikes on gold mines in South Africa to increase revenue. Gold exploration is also prevalent in Alaska, British Columbia and the Sonora region of Mexico.

Gold continues ascent

Fri, 18 May 2012 10:43:46 GMT

Gold prices continued to rebound on May 17 and increased by more than 2.6 percent to post the largest one-day gain since the end of January, according to Reuters.

In China, gold demand reached a new high for the first quarter due in part to worries over property market curbs and inflation, the news source stated.

"Evidently, some buying on the dips emerged above December lows also with fresh physical inflows with prices starting to look attractive," VTB Capital said in a research note. "Some physical interest is welcome, but much more serious buying out of Asia needs to emerge for us to see a sustained recovery. For now, the investor community remains spooked and is unlikely to return to the market with full vigour unless we have a monumental credit event in Europe or a pronounced dollar retreat."

In South Africa, the gold mining industry recorded a slight increase after previously struggling severely. Gold exploration remains a surging industry around the world with nations like China and India importing large amounts of the metal. Gold and copper mining is rampant in the Sonora region of Mexico and gold mining is the main metal being produced in Alaska and British Columbia.

African governments give mining companies tax break

Fri, 18 May 2012 10:43:41 GMT

Governments in Africa are looking to get more revenue from their mining industries but instead have decided to give the companies a tax break for the time being.

According to Reuters, the governments are continuing to consider tax hikes on gold mines and in South Africa. The government is also mulling resource nationalism, which has been its signature given the region's political climate.

"It is a structural change and I would not read too much into a change of sentiment on that," Gold Fields' Chief Executive Nick Holland told Reuters. "The gold industry has already taken royalty taxes which is about 300 million rand ($36.14 million) a year to us. Now we have a mooted carbon tax coming which is probably another 300 million. We can't really take much more."

Although gold production remains a staple of regions across the world, a recent report from Forbes revealed that demand for global gold jewelry is actually down 6 percent in the first quarter despite the value of jewelry demand overall growing by 14 percent to $28.3 billion. Gold exploration is a mainstay in the Sonora region of Mexico as well as in Canada and the United States.

South African gold mining records slight increase

Thu, 17 May 2012 13:52:07 GMT

Gold miners in South Africa have been suffering as of late but recently showed signs of promise.

According to Bloomberg, gold mining shares in the region traded less than 0.1 percent higher on May 16 and reached a two-year low after gold entered a bear market with the situation in Greece still carrying weight.

“Commodity prices were unrealistically high as a direct result of a combination of easy and cheap money from quantitative easing and the threat of inflation,” Peter Major, an analyst at Cadiz Corporate Solutions, a unit of Cadiz Holdings, told the news source. “The market is efficient and it looks ahead. Mining houses have been weak for four or five months now; investors definitely saw weaker prices going forward.”

Gold mining activities continue around the world. According to The Associated Press, the government of Guyana has announced plans to open offices in the country's interior in an attempt to reduce gold smuggling tactics and ensure the safety of the country's miners. Gold exploration is also prevalent in the Sonora region of Mexico as well as in British Columbia and Alaska, with the metal being exported to needy countries everywhere.

Mining costs on the rise

Wed, 16 May 2012 10:07:06 GMT

The rising costs associated with gold mining could be disastrous for the industry if a solution isn't reached soon.

According to Reuters, gold will need to hit $3,000 per ounce over the next five years if the gold mining industry is to remain profitable. The projection, from World Gold Council Chief Executive Aram Shishmanian, reveals that gold miners currently need the price of gold to stay around $1,300 for them to profit.

"Emerging markets are going to hold increasing amounts of gold reserves," Shishmanian told the news source. "Holding billions of dollars doesn't help them. The alternative potentially is gold."

Meanwhile, the price of gold continues to drop amid turmoil in Greece. Spot gold dropped to a new four-and-a-half-month low of $1,556.5 per ounce on May 14, according to the news source.

In Latin America, a gold rush is sweeping the region but the Amazon rain forest and other natural wonders are being negatively affected from the rush. Gold exploration is already underway and producing fruitful returns in Alaska, British Columbia and the Sonora region of Mexico where copper is also being mined.

Gold ETFs drop

Tue, 15 May 2012 10:07:54 GMT

Gold exchange-traded funds have lost more than 1 percent as of May 14, according to a report from ETF Trends.

The drop happened along with bullion prices, which also experienced losses for 2012, the news source stated, as gold prices continued their trend of resting below $1,600 per ounce and futures continuing to trade at their lowest levels in four months due in part to unrest in Greece and the euro strengthening against the U.S. dollar.

“Gold is under severe pressure," Daniel Briesemann, an analyst at Commerzbank, told Reuters. "The U.S. dollar is being seen as a safe haven at the moment and as long as the dollar is appreciating against the euro this is clearly weighing on the gold price."

According to The Wall Street Journal, gold futures ended May 14 at a new low for the year, as the metal, for June delivery, dropped $23 or 1.5 percent to settle at $1,561 per ounce on the Comex division of the New York Mercantile Exchange. Gold exploration continues on, however, with metal-rich regions like the ones in Mexico, Alaska and British Columbia helping to increase production on a global scale.

Copper drops sharply

Tue, 15 May 2012 10:07:46 GMT

Copper futures reached their lowest point in four months due in part to the situation in Greece, according to The Wall Street Journal.

On the Comex division of the New York Mercantile Exchange, copper for July delivery settled down 2.6 percent, or $9.40, to reach $3.554 per pound, the news source stated.

"Early weakness persisted all day as equities and commodities felt the weight of a possible Greek exit from the European Union," traders with RBC Capital Markets said in a note. "No matter how you slice it, the global economy looks to have stalled again in the face of slowing Chinese demand and the ripples of a European debacle."

The political turmoil underway in Greece has contributed to the rise of eurozone debt crisis fears and dragged down copper, which is sensitive to growth.

Recent drops in the price of gold have been attributed to softer exports from China. The country recently represented a drop in gold demand, as well. Copper mining stocks continue to fluctuate but production remains high in the Sonora region of Mexico.

Chinese gold demand waning

Mon, 14 May 2012 17:22:33 GMT

The usually strong demand for gold in China, the world's second largest consumer of the metal, is being hampered by a drop in prices.

According to Bloomberg, the stagnant prices have turned off many investors and the slow economic growth throughout the country has hindered sales. Xin Zhihong, vice president at Shanghai jeweler Lao Feng Xiang said the volatility and drops in gold prices since September and slow economic growth have affected the attitudes of Chinese consumers.

“The expectation that gold prices will always rise and that gold’s value can only appreciate seems to have faded,” said Xin at Lao Feng Xiang, whose company name translates as Old Auspicious Phoenix, added. “Some consumers are now sitting on the sidelines with cash in their hands, pondering whether to buy.”

On a global scale, the price of gold recently dropped to a 4-month low as the U.S. dollar strengthened and continued worry over the situations in Greece and Spain forced investors to pare their holds of the assets, which have since been perceived as risky. However, gold exploration continues around the world, especially in the Sonora region of Mexico and in Alaska and British Columbia.

Gold down sharply over past month

Mon, 14 May 2012 17:22:26 GMT

The price of gold continues to fluctuate on a daily basis, but a new report from CNNMoney reveals the metal has retreated significantly over the past month and a half.

With political turmoil ravaging Greece and Spain as well as Europe as a whole, the precious metal has dropped to close to $1,560 per ounce, or 13 percent below the high of $1,800 it reached in March, the news source stated. On a year-over-year basis, gold prices are down slightly.

"Inflation is modest because of significant unemployment - the case for gold is when the economy is getting better," Barry Ritholtz, CEO of Fusion IQ, a New York-based research firm, told the news source. "Right now, gold is less than an ideal investment."

According to a report from Fast Markets, gold futures opened the week significantly lower on May 14. On the New York Mercantile Exchange's Comex division, gold for June delivery was last reported down $22.90. Gold exploration continues to thrive despite the ebb and flow of pricing. The Sonora region of Mexico is especially fruitful as is the Alaskan and British Columbian regions in North America.

Gold shows slight gains

Fri, 11 May 2012 16:04:35 GMT

The price of gold moved up slightly on May 10, helping to offset three consecutive days of losses due in part to political turmoil in Greece, according to Reuters.

Spot gold moved up 0.2 percent for the day to $1,593.41 per ounce, the news source stated, after eurozone governments decided to reach an agreement that would pay Athens 5.2 billion euros out of the bailout fund used by the region to keep the country above water.

"There are not many good reasons to sell gold or other precious metals," Yuichi Ikemizu, head of commodity trading, Japan, at Standard Bank, told the news source. "It is risk-off selling in everything but dollar and yen."

One Singapore-based trader added the physical market has been relatively quiet as prices dropped even lower.

According to The Wall Street Journal, gold futures steadied on May 10 and held their gains as investors decided they were a bargain after sliding to four-month lows earlier this week. Gold exploration remains rampant in various parts of the world including in Alaska, British Columbia and the Sonora region of Mexico, where copper is also mined successfully.

South African gold miners use tax credits to their advantage

Fri, 11 May 2012 16:04:15 GMT

Gold miners in South Africa are using the newly implemented tax credits to help boost their bottom lines after less than promising March earnings reports.

According to Reuters, the tax credits have helped several gold mining companies boost their share prices with investors focusing on the short-term gains to be had rather than dwelling on the issues that have plagued the sector for so long.

"Obviously the tax adjustment has been very helpful and we thank the government for taking a long-term open view of its taxation strategy," AngloGold chief executive Mark Cutifani said during a conference call with journalists.

David Davis, mining investment analyst at SBG Securities, added the deferred tax is meant to serve as a one-off boost and that is all.

Last month, the Modikwa platinum mine in Limpopo, South Africa, which also specializes in copper and gold mining, was the site of a strike by the National Union of Mineworkers. A resolution was finally met between both sides. Gold exploration remains successful in the Sonora region of Mexico as well as in Alaska and British Columbia, Canada.

Gold ends the week at new 4-month low

Fri, 11 May 2012 16:03:47 GMT

The price of gold ended the week retreating and falling to a new 4-month low with the U.S. dollar strengthening and stocks dropping, according to Reuters.

Significant trading losses for JPMorgan and further worries surrounding the financial stability of Spain and Greece helped spur the drop just a day after the metal showed slight gains. Silver, platinum and palladium also dropped, with spot gold sliding to $1,573.29 per ounce, its weakest output since January 3, the news source stated.

"The markets are not happy at all," Afshin Nabavi, head of trading at MKS Finance, told the news source. "(Gold) still feels a bit top heavy. With this move down, physical demand is not all that great. It feels like it may test the lower side around 1550 first, before bouncing back up again."

According to The Wall Street Journal, gold futures for June delivery traded down $12.70, or 0.8 percent, at $1,582.80 per troy ounce on the Comex division of the New York Mercantile Exchange. Gold exploration continues to thrive, though, despite the ebb and flow of prices. The Sonora region of Mexico is especially fruitful as is mining operations in Alaska and British Columbia, Canada.

Experts predict gold to tumble further

Wed, 09 May 2012 11:23:04 GMT

Gold has receded from the gains it made earlier this year and could continue on a further downward path, according to CNBC.

Many experts believe that gold's decline might continue, as it has dropped roughly $120 from this year's high close to $1,715 per ounce in early February. The most recent declines are attributed to turmoil in Europe and the strengthening U.S. dollar, the news source stated.

"Open interest in gold futures also rose yesterday, indicating that new short positions are entering the market," gold trader Kevin Grady of Phoenix Futures and Options told the news source. "A lot of longs have already liquidated and off of a move today you'll see more shorts entering the market."

Another reason why gold may be dwindling is the possible selling of oil to China by Iran in exchange for the metal. On May 8, gold futures for May delivery dropped to a new four-month low, settling at $1,604 per ounce, according to The Wall Street Journal. Gold exploration and drilling efforts are common around the world with mines producing the metal in Mexico, Canada and the United States.

Gold futures hit four-month low

Wed, 09 May 2012 11:22:55 GMT

Gold futures dropped to a four-month low on May 8, according to The Wall Street Journal.

The drop of more than 2 percent was caused in part due to a potential worsening of the debt crisis in Europe - following last weekend's elections - sending traders looking for security to the U.S. dollar, the news source stated.

"The moves in the dollar and the impact that's having on equities, commodities and precious metals shows there's more fear than greed in pretty much all assets right now," Adrian Ash, head of research with online metals dealer BullionVault, told the news source.

In addition to gold dropping, silver futures set for July delivery were down 2.9 percent to $29.235 per ounce, with futures touching the lowest level since the beginning of January, the news source stated.

In India, gold demand is reaching new highs due in part to marriage season. The nation also recently removed its excise tax on gold jewelry, according to The Wall Street Journal. Meanwhile, gold exploration ventures continue to flourish in the Sonora region of Mexico as well as in Alaska and British Columbia, Canada.

Traders speculative on gold stocks

Tue, 08 May 2012 04:58:44 GMT

Traders are eyeing gold stocks warily in hopes they will make a significant move in the near future.

In a report for MarketWatch, Peter Brimelow writes that once again gold sentiment is attracting naysayers, and gold stocks are intriguing traders due to their potential. However, the metal has done little to warrant the intrigue as it has dropped off recently.

“The worst decline in gold shares happened over the last two months," states a report from Gold Charts R U service. "Gold shares in general lost 21 percent compared to gold’s 9.5 percent decline since the February high, which has been disappointing. The worst part of the gold-share fall was from mid-March to the latest low.”

The report from GCRU adds that gold shares are cheap right now and are the cheapest they have been since the onset of the financial crisis in 2008. In Atlantic City, visitors to its casinos can use vending machines to purchase gold. Gold exploration has picked up steam in many parts of the world including in Alaska, British Columbia and the Sonora region of Mexico.

Gold declines to start the week

Tue, 08 May 2012 04:58:33 GMT

The price of gold started the week down due in part to European elections and the state of the euro damaging stocks, according to Reuters.

With elections in Greece and France casting doubt on the ongoing battle against the debt crisis, and the euro dropping to a three-month low, gold fell 0.2 percent, the news source stated.

"Gold opens the week lower with investors in risk-off mode after this weekend's election," Alexander Zumpfe, a trader at Heraeus, a precious metals house, told the news source. "Stocks are weaker, the euro is losing ground and, since gold is currently considered a riskier asset, it is also losing ground."

On the Comex division of the New York Mercantile Exchange, gold future prices were trading modestly lower on the morning of May 7, according to Kitco News. Trading in Comex was affected by the latest developments in Europe. Meanwhile, gold exploration remains a fruitful endeavor in the Sonora region of Mexico as well as in British Columbia, Canada, and in Alaska.

Copper down in London, up in the Comex division

Mon, 07 May 2012 15:44:39 GMT

Copper prices dropped to their lowest point in more than a week in light of the recent U.S. payrolls report, according to Reuters.

The drop was attributed to weaker than projected data related to jobs in the United States and an increasing uncertainty about the rate of economic growth, the news source stated. However, tight copper supplies outside China kept the losses minimal.

"The macro numbers are becoming worse, especially in the U.S., so it's going to be difficult for a lot of these metals to hold up," Edward Meir, an analyst at INTL FCStone, told the news source. "The French elections will also be important, because then the euro might move on that and give the market a bit more direction."

Benchmark copper on the London Metal Exchange traded at $8,146 per metric ton, ending at $8,175, down 0.7 percent from May 3 and the lowest mark since April 25, the news source stated.

In the United States, copper on the Comex division of the New York Mercantile Exchange edged up slightly higher by 0.35 cents to $3.7395 per pound, according to The Wall Street Journal. Copper mining stocks are constantly affected by production from some of the world's leading mines including the one in the Sonora region of Mexico.

Copper prices decline

Fri, 04 May 2012 16:41:42 GMT

Copper prices dropped in moderate dealings on May 3 and are on pace for their first weekly loss in the past three weeks, according to Reuters.

Copper volumes on the Comex division of the New York Mercantile Exchange flirted with 50,000 lots in late trade, which was more than a third below the 30-day average, the news source stated.

"There is still a whole host of uncertainties in the market," Robin Bhar, an analyst with Societe Generale, told the news source. "There are troubles in the euro zone, and with non-farm payrolls out of the U.S. tomorrow, there is a lot of scope for volatility in commodity markets. The $8,200 level has been pretty solid support for copper. If it doesn't hold above that, then it could be quite bearish because it would have broken some fairly influential support levels."

Copper mining stocks are affected by pricing and production of the metal, which is also the case for other precious metals including gold. In India, the world's largest buyer of bullion, gold traders have been avoiding the metal due in part to a weak rupee, according to Reuters. Copper mines are prevalent around the world most notably in the Sonora region of Mexico.

Gold situation in India hindering economy

Fri, 04 May 2012 16:41:38 GMT

In India, the demand for gold is so rampant that it is trumping record high prices and having a negative effect on the economy, according to Voice of America.

Marriage season is high time for jewelry and gold demand throughout India. The country hosts approximately 10 million marriages each year, and, last year, imported nearly 816 metric tons of gold, the new source reported.

“Today I think what India faces is a situation where we run a high current account deficit and gold imports account for almost 80 percent of the current account deficit," D.K. Joshi, a chief economist with Crisil rating agency in Mumbai, told the news source. "It is not a very productive way of saving. Also what we have seen is people have moved away from investment in financial instruments towards gold, so that is also not very healthy.”

The news source stated that gold accounts for the highest outflow of foreign exchange in India, as the nation imports the metal from other countries. Until recently, the Indian government prohibited private businesses from directly importing gold, but that changed recently with one exception. Now, the government is expected to consider changing the law to allow other private companies to directly import the metal. Gold exploration is rampant in Mexico, Canada and the United States.

Gold ends the week strong

Fri, 04 May 2012 16:41:34 GMT

The price of gold ended the week strong, edging back into positive territory on May 4, according to Reuters.

With the U.S. economy adding fewer jobs than originally forecast, the U.S. Federal Reserve is expected to resort to further monetary easing in order to boost growth, which pushed gold back into positive territory after several straight days of decline, the news source stated.

"The numbers were less than consensus, but beat some more bearish expectations," Societe Generale analyst Robin Bhar told the news source. "The $64 million question is what it means for quantitative easing, which of course is key for the gold market," he said. "The euro/dollar hasn't shifted a huge amount."

In addition, silver fell to a new three-and-a-half-month low to around $30 per ounce as spot gold advanced 0.1 percent to reach $1,637.71 per ounce and gold futures for June delivery grew $3.10 per ounce to $1,637.90, the news source stated.

According to Kitco News, gold gains were limited because of mixed data surrounding the jobs report and other economic information. Gold exploration is rampant across North America including in Alaska and British Columbia, Canada, with mines also producing in the Sonora region of Mexico.

Canadian stocks drop, led by mining companies

Thu, 03 May 2012 17:26:57 GMT

Canadian stocks continued their losses on May 3, falling more than 1 percent, with gold mining and energy industries dropping amid weak data from the United States, according to Reuters.

Canada's stock market continues to be affected by U.S. data with the slower than expected private sector employment report and other factors offsetting a more upbeat outlook for the euro zone and the European Central Bank, the news source stated.

"The economic data remains relatively lumpy," Craig Fehr, Canadian market strategist at Edward Jones in St. Louis, Missouri, told the news source. "The market's going to react in kind to the fact that data is not pointing all to the upside or coming in well ahead of expectations in the near term."

However, gold exploration continues to prosper throughout Canada, more specifically in British Columbia. A recent report from the Bullion Vault took into account the environmental, political and logistical considerations happening over gold mining operations in the Dominican Republic and Haiti. Gold exploration is also rampant in the United States in Alaska and in Sonora, Mexico, where copper mining is also prevalent.

Gold drops, set for bigger declines

Thu, 03 May 2012 17:26:52 GMT

Gold dropped by more than 1 percent on May 3 and could be set for the biggest drop in nearly a month, according to Reuters.

Dropping crude oil prices and weak service sector data in the United States sent the price of bullion toward its biggest one-day drop since April, with the impending nonfarm U.S. payrolls report still to come, the news source stated.

"Things will have to look very weak tomorrow morning to see any upside momentum come back," Carlos Perez-Santalla, a precious metals trader at PVM Futures, told the news source. "If the nonfarm payrolls number is stronger, then we'll see gold really test $1,600 an ounce."

Silver showed a more substantial drop in the United States, declining nearly 2 percent, with platinum and palladium also dropping by more than 1 percent.

According to Forbes, the price of gold has dropped for three straight months for the first time in 11 years. However, gold exploration continues to flourish in metal-rich regions across the globe including in Mexico, Canada and the United States.

Copper drops to one-week low

Thu, 03 May 2012 12:10:12 GMT

Copper hit a new one-week low on May 2 due in part to increased fears of a global economic slowdown, according to Reuters.

Contracting manufacturing activity in the Euro zone and China, in addition to weak private sector jobs data in the United States, pushed copper down close to 2 percent for the day. Peter Buchanan, commodities analyst and senior economist at CIBC in Toronto, blamed Europe and its troubles recovering from the recession, the news source stated.

"The jobs number today was an unpleasant surprise for those who were hoping that the payrolls report on Friday would dispel the gloom from the below-consensus print that we had in March," Buchanan told the news source. "Based on this number, people are likely paring their estimates for the payrolls number, and employment growth in the near term."

In Chile, an energy shortage is challenging the copper outlook across the country, according to Copper Investing News. Chile is the world's largest producer of copper and China is the world's largest buyer of the product, placing both countries' economic status in high relevance to the state of copper on a global basis, as well as in copper mining stocks. Copper production remains fruitful in Sonora, Mexico, as well as elsewhere around the world.

Americans view gold as solid long-term investment, poll finds

Wed, 02 May 2012 16:21:57 GMT

A recent Gallup poll found Americans think gold is a better long-term investment than real estate, paper assets and bonds.

The poll showed that 28 percent of American respondents place gold as the best long-term investment, while 20 percent of respondents cited real estate as the best investment. In addition, paper assets like stocks and savings accounts came in third at 19 percent, and bonds came in last at 8 percent.

"Investing in gold has gained in popularity in recent years as low interest rates have made traditional savings instruments less attractive, and instability in the stock and real estate markets has undermined the mass appeal of those options," Gallup stated. Economy and Personal Finance. "Meanwhile, the rising trajectory of the price of gold over the past several years apparently offers more of the returns and stability investors seek."

Gold stocks were most recently affected by comments from the U.S. Federal Open Market Committee. The metal declined the most in a week after three voting members of the committee announced they don't see the need for further economic stimulus, according to Bloomberg. Meanwhile, Gold exploration continues to produce vast quantities of the metal in Mexico, Canada and the United States.

Copper starts May strong

Wed, 02 May 2012 16:19:17 GMT

Copper climbed higher to begin May due in part to upbeat manufacturing indexes from China and the United States, according to Reuters.

The metal climbed in lighter than usual volume on Tuesday as Gianclaudio Torlizzi, consultant at T-Commodity, told the news source the data was positive and that figures from China confirmed the economy has hit rock bottom in the first quarter this year.

"Talk of China re-exporting copper from bonded warehouses for financing purposes have been viewed as negative by the market, but we think volumes may be limited and that China will continue to import copper, which is of strategic importance," ANZ said in a research note.

Gayle Berry, analyst at Barclays, added that the financial services provider is definitely seeing some short covering in lead, as that particular metal finished up $32 at $2,180 per ton.

Copper is a popular commodity and has been the prized item in a number of thefts. According to CBC News, a recent copper theft in Charlottetown, Canada, caused roughly $300,000 in damage. Copper mining stocks are constantly fluctuating with one fruitful mine in operation in Sonora, Mexico.

Peru gold mine in danger of shutdown

Wed, 02 May 2012 16:17:04 GMT

The gold mining industry in Peru could take a hit with the president of Newmont Mining Corporation considering shutting down its Conga gold mine.

According to The Associated Press, Richard O'Brien, president of Newmont, said the company needs to find a way to develop their $4.8 billion mining project in the country in a manner that is not only safe, but socially and environmentally responsible, and the mine could be in danger if enough funds are not raised.

“Conga’s development would be a significant source of revenue for the government of Peru, along with significant employment,” O’Brien said in an earnings call with analysts, the news source stated.

It is yet to be seen how gold mining stocks will be affected on a global basis from the mine shutting down, or how severely the unemployment rate will suffer as a result. In Australia, one leading gold mining company plans to expand by building a new mine in the western part of the country's Murchison region. Gold production is already fruitful in various regions around the globe including in Sonora, Mexico; Alaska in the United States; and British Columbia, Canada.

Gold retreats with strengthening dollar

Tue, 01 May 2012 17:05:11 GMT

Gold continued to retreat from two-week highs to begin May due in part to a strengthening dollar resulting from U.S. manufacturing data that was better than expected, according to Reuters.

The manufacturing data analysis and strengthening dollar soured speculation that the U.S. Federal Reserve could continue monetary easing actions in an attempt to boost growth, the news source stated.

Until confirmation is made on the Fed's ruling, gold could be limited in the near future, some analysts and industry experts agree.

"What I would definitely say is, near term, I can't see the price breaking higher, to $1,700 an ounce or above," Nikos Kavalis, an analyst at RBS, told the news source. "It needs another catalyst, something more powerful than perhaps in the near future there could potentially be QE. Of course, an excessively loose monetary policy environment will continue but whether there is a need for another QE, I am not convinced."

In India, marriage season has driven demand for the metal to an all-time high, reaching 29,590 rupees per 10 grams, according to The Times of India. Gold exploration continues to ramp up in regions throughout the world, including in Sonora, Mexico; Alaska; and British Columbia, Canada.

Copper continues upward tear

Mon, 30 Apr 2012 17:04:03 GMT

Copper continued its growth to start the week as it settled up 0.1 percent on Monday, April 30, according to a report from The Wall Street Journal.

Copper futures continued their ascent in low volume, setting a three-week high in terms of momentum following last week's increases resulting from a tight market for the precious metal, the news source stated.

On the Comex division of the New York Mercantile Exchange, copper settled at $3.8295 a pound, with output from Chile, a top producer, dropping 2.6 percent for the month compared with levels reached a year ago, according to the news source. Chile's reduced output stoked demand, although demand from the significant Chinese market lagged.

"We are seeing pretty decent backwardation in the market for spot demand outside China, and cancelled warrants remain very high," Andrey Kryuchenkov of VTB Capital told Reuters in an interview. "But I would be careful because China is still the driver here."

Copper ended the last full week of April up 0.9 percent and continues to show strength, with copper mining stocks also factoring into production and pricing. With production dropping in Chile, investors looking at copper mining stocks might favor operations in resource-rich regions that have stable mining concerns, such as Sonora, Mexico.

Gold starts the week down

Mon, 30 Apr 2012 16:50:52 GMT

Gold futures dropped slightly due to data analysis that showed only modest gains for personal spending in the United States, in addition to a strengthening dollar, according to a report from The Wall Street Journal.

The drop snapped a two-day run of growth as the most actively traded contract - for June delivery - dropped 0.8 percent, or $12.50, on the Comex division of the New York Mercantile Exchange, ending at $1,648.80 per ounce, the news source stated.

Gold could be in further trouble considering that fund managers are apparently less interested in holding on to it.

"(These bullish bets are) down from August last year by 58 percent, all of which shows assets allocators (are) moving some money out of precious metals (in favor of stocks)," George Gero, vice president of RBC Capital Market Global Futures, told the news source, adding gold traders saw the most recent data analysis as disappointing.

Gold started the day showing minor losses but ended it producing much larger ones, according to Resource Investor. However, the metal continues to be priced high given continuing global economic uncertainty. Gold mining stocks are also favored by many investors, and gold exploration continues on and has proven fruitful in Sonora, Mexico, as well as in Alaska and British Columbia, Canada.

Indian gold demand reaches new all-time high

Mon, 30 Apr 2012 16:50:50 GMT

A new report from The Times of India has gold reaching an all-time high of 29,590 rupees per 10 grams, due in part to steady buying from stockists and consistent buying from jewelers in order to meet the demand associated with marriage season.

In India, gold has gained Rs 650 in the last eight trading sessions and only further advanced its levels to start the week, setting a new record as grooms across the country look for the proper gold to please their future wives.

"The gold getting support from all the front like haven demand in overseas markets and a socio-economic value on the domestic front," All India Sarafa Association general secretary Surender Jain told the news source.

Gold demand in India had been suffering, with many private companies still prohibited from directly importing the metal from foreign countries and the effects of a recent protest from jewelers and bullion traders being felt. However, an exception to the direct import rule was recently made and the country is considering allowing other private businesses to import gold directly. Gold exploration is rampant across the world with imports available from mines in places as diverse as Sonora, Mexico; British Columbia, Canada and the U.S. state of Alaska.

Gold ends week on the rise

Mon, 30 Apr 2012 10:06:02 GMT

A recent report from MarketWatch revealed that gold futures gained some ground on April 27, ending the week up due in part to a weaker dollar.

The weakening dollar was attributed to data that revealed economic growth in the United States has slowed further than expected for the first quarter this year, and the fact that the euro zone still faces concerns after a downgrade to Spain's debt, the news source stated.

“We do not expect a sustained rebound here, though a further pullback in the U.S. currency could push bullion a little higher and nearer to early April highs,” analysts at VTB Capital wrote in a note to clients.

Gold for June delivery climbed $4.30, or 0.3 percent, to $1,664.80 per ounce on the Comex division of the New York Mercantile Exchange, the news source stated.

According to a report from Business Standard, gold has entered a bull run after 20 weeks, in part because of the decision by the U.S. Federal Reserve to not raise interest rates for at least the next two years. As the markets turn bullish for the metal, gold exploration is continuing to thrive around the world, in places such as Sonora, Mexico, as well as in Alaska and British Columbia.

Copper ends the week stable

Mon, 30 Apr 2012 10:05:39 GMT

Copper ended the week up 0.9 percent, reaching $3.8020 a pound, due in part to a weak gross domestic product fanning hopes of further stimulus, according to a report from The Wall Street Journal.

Copper futures were affected by the U.S. economy expanding at a slower rate than many experts had predicted for the first quarter this year, with GDP growing at an inflation-adjusted annual rate of 2.2 percent for the first three months 2012, short of the 2.6 percent growth rate many economists had predicted, the news source stated.

"We're getting some speculative money looking to buy copper on the idea that QE3 is looming and lurking," Sterling Smith, an analyst with Country Hedging, told the news source.

Gold futures also ended the week up. A recent report from MidnightTrader.com, posted on Nasdaq's website, stated that gold traders were more bullish, with central banks hoarding more gold bullion as well as hedge funds increasing bets on a rally for the first time in three weeks.

Gold exploration plays a pivotal role in the metal's trading on the stock exchange and many regions produce the product, including in Sonora, Mexico; British Columbia, Canada; and the U.S. state of Alaska.

Mining companies competing for talent worldwide

Fri, 27 Apr 2012 22:36:29 GMT

Mining companies across the world that specialize in gold, silver, copper, platinum and other precious metals are currently in a heated battle to recruit the top talent coming out of trade schools and colleges everywhere.

According to a report from Bloomberg Businessweek, one recruiter in Calgary, Alberta, is looking for people with a strong work ethic and knack for the mining trade, as the company is attempting to bring between 10 and 20 miners to South America and Canada to meet demand during the global mining boom currently underway.

“There are just simply not the people there, and I think it’s going to be the Achilles heel of the industry,” Bruno Rizzuto, managing partner at Cadre Staffing Inc., told the news source. “A lot of these projects will not be able to get off the ground because they will not have either the management capacity to do so or the operational workforce.”

Interest in working for the mining industry fluctuates with the global state of the industry as well as the demand mining companies see. According to the news source, enrollment in mining graduate programs dropped in the 1980s and 1990s and then again at the turn of the century, with the technology boom taking away from mining companies.

Compensation is another factor that many job applicants consider before deciding on taking a position, and this could entice some high quality workers. Geologist Marc-Andre Brulotte left a position at a consulting company in Montreal last year to take a job in Australia that led to him nearly doubling his salary.

“It’s a really good time to be a qualified professional, there are lots of good opportunities for us,” Brulotte told the news source. “It’s another story for the fresh out of school geologists or engineers, they will get a job for sure."

A recent report from Reuters reveals that a career in gold exploration often starts at the academic level, with the proper school credentials earning some applicants generous salaries with benefits. Travis Howard pursued a double major in mechanical engineering and metallurgy at the Colorado School of Mines and graduated at 21 with a job offer of $64,000 per year plus bonuses.

Those looking to become mining professionals might be most interested in operations based in resource-rich and politically stable parts of the world, such as Alaska and British Columbia.

Gold ETF demand rises in India

Fri, 27 Apr 2012 11:52:00 GMT

Although previous reports had gold demand improving little in India despite the Akshaya Tritiya holiday, a new report from The Wall Street Journal suggests demand for gold exchange-traded funds climbed 44 percent on the day.

A Hindu and and Jain holy day traditionally associated with a spike in gold purchasing, a report from PTI revealed no increase in gold demand this year. However, the trade value of gold ETFs, otherwise known as paper gold, on India's National Stock Exchange, climbed to $6.08 billion rupees from $4.23 billion last year.

"The young generation now prefers to invest online rather than go to jewelers, which is increasing the demand for paper gold," Harish Galipelli, head of research at commodity brokerage firm JRG Wealth Management, told the news source.

The gold industry in India has been in flux recently with the government still mulling allowing private companies to directly import gold instead of going through federal channels. Should this importation regulation change, Indian importers could directly take advantage of gold exploration and production being undertaken across the world, including in Alaska and British Columbia, Canada, as well as in Sonora, Mexico.

Gold remains steady on heels of Fed meeting

Wed, 25 Apr 2012 16:36:06 GMT

Gold prices remained steady, close to $1,640 per ounce, on April 25, as the market awaited the results of an upcoming meeting involving the U.S. Federal Reserve, according to a Reuters report.

The meeting addressed U.S. monetary policy, and the results are expected to keep rates at a record low. The Fed said it will keep interest rates at their near record lows and pointed to concerns regarding European debt. The weakening of the dollar to a new three-week low compared to the euro helped further support gold, the news source stated.

The Fed disappointed those who were hoping for signs of renewed quantitative easing, according to Reuters.

"Today of all days we can't avoid talking about quantitative easing," Natixis analyst Nic Brown told the news source. "I wouldn't be surprised to see gold trading a fair bit lower tomorrow if the Fed gives no hints about imminent QE."

According to a report from Dow Jones Newswires, gold futures dropped before erasing earlier losses, and gold buying continued to disappoint in India. Despite this lack of demand from one of the world's foremost markets, gold exploration continues to thrive in fruitful regions like in Alaska and British Columbia, Canada, as well as in Sonora, Mexico.

Gold demand drops on holy day in India

Tue, 24 Apr 2012 17:08:41 GMT

A recent report from PTI reveals that a recent holy day in India did not see a spike in gold demand.

Akshaya Tritiya, or Akha Teej, is a Hindu and Jain holy day that is traditionally associated with a spoke in gold purchasing, but that was not the case in 2012.

"Gold sales were lower than last year," a GTM Jewellery Mart official told the news source. The official added that consumers are confused as to whether they should buy now or wait to see if prices fall.

In addition, gold sales were down 25 to 30 percent in the state of Gujarat on a year-over-year basis, the news source stated.

Although gold buying has been rough sledding in India as of late, a recent report from The Wall Street Journal hints that demand for the metal throughout the country could experience an upward swing in the near future. However, regardless of Indian demand, gold exploration continues to prosper in other parts of the world like Sonora, Mexico, and in British Columbia and Alaska.

Gold, silver and copper all climb

Tue, 24 Apr 2012 17:08:33 GMT

The price of gold showed signs of strengthening on April 24 due in part to gains experienced on Wall Street and in options-related selling, according to a Reuters report.

U.S. gold was up 0.6 percent as industrial metals and equities rallied, but were cooled off by an upcoming U.S. Federal Reserve monetary policy meeting, and selling pressure ahead of a U.S. option expiration, the news source stated.

"Right now, the long-put buyers have the control because they are in the money," Anthony Neglia, president of Tower Trading and a COMEX gold options floor trader, told the news source. "If the put buyers are under-hedged, they are going to buy some gold. Conversely, for the short put sellers, if they are under-hedged, they are going to sell some gold. So we maybe trapped in this range."

Meanwhile, U.S. silver climbed 1 percent, according to Reuters. Copper rose for the second time in three sessions due in part to promising news regarding home sales in the United States. According to a report from Bloomberg Businessweek, copper futures for July delivery climbed 1.1 percent on the Comex division of the New York Mercantile Exchange. Copper mining stocks are also constantly fluctuating, but investors continue to show interest in fruitful mines operating in resource-rich parts of the world, like Sonora, Mexico.

Gold starts week down

Tue, 24 Apr 2012 13:17:02 GMT

Gold prices started the week on a downward trend, regardless of concerns over what is taking place in China and across Europe.

According to a report from MarketWatch, despite political concerns in the euro zone, as well as data analysis from China that found the nation's manufacturing sector could be causing a broader market selloff, gold planned for June delivery dropped $10.20, or 0.6 percent, to settle at $1,632.60 on the Comex division of the New York Mercantile Exchange for April 23.

“When you see a selloff like today, investors jump out of gold,” Rohit Savant, an analyst with CPM Group in New York, told the news source. “It’s more a rush to cash."

He added that safe-haven flows could trickle down over the next several days, with triple-digit losses recorded in the stock market as well as a significant decline for oil and other commodities.

Gold producers also have to compete with exchange-traded funds. Brian Hinchcliffe, the CEO of one leading gold producer, recently urged his peers to pay more in dividends to compete with ETFs. Regardless of this potential competition for investor dollars, gold mining stocks and bullion have both been doing well. Gold exploration continues to thrive in Sonora, Mexico, as well as in Alaska and British Columbia, Canada.

Copper drops to new three-month low

Tue, 24 Apr 2012 13:16:59 GMT

The price of copper futures dropped to the lowest level in three months on April 23, due in part to weak economic data from two of the world's top consumers, according to a report from The Wall Street Journal.

Copper on the Comex division of the New York Mercantile Exchange dropped 2 percent, or 7.2 cents, to settle at $3.626 a pound. Copper imports in China dropped 8 percent from the levels they reached in February, but they still remain significantly above 2011 levels, the news source stated.

"People are thinking that for medium- and smaller-sized enterprises, demand may be stalling a bit," Bart Melek, head of commodity strategy with TD Securities, told the news source. "We're not meeting the (growth) expectations we had just a short while ago."

Meanwhile, gold prices also started the week trending downward, along with oil and other commodities. Although copper mining stocks and other metals activity fluctuates on a daily, and sometimes even hourly basis, gold explorationcontinues to thrive in Sonora, Mexico, as well as in British Columbia and Alaska.

Indian gold demand expected to rise

Mon, 23 Apr 2012 17:13:38 GMT

A recent report from The Wall Street Journal indicates that gold demand in India, which has suffered as of late, could be in store for an uptick in the near future.

Due in part to high global prices and a tax hike that scared many gold purchasers in India, Vijaylaxmi Joshi, chairwoman of the state-run bullion importer, told the news source that consumers won't be able to stay away from buying the metal for long.

She told the news source that despite demand dropping recently, it will surge after a while as Indians have a "very large" appetite for the metal, and India is the world's largest consumer of it,as well.

Jewelry demand is also expected to bolster demand for gold.

"Young people prefer to wear light jewelry," Joshi told the news source. "The margins are also better for us."

A recent report from the Hindustan Times, citing data from the World Gold Council, showed that Indian demand for gold dropped by 7 percent on a year-over-year basis between 2010 and 2011. However, despite this drop, gold exploration continues to flourish in many parts of the world, including Mexico, Canada and the United States.

Gold continues to suffer in India, experts look ahead

Mon, 23 Apr 2012 14:04:48 GMT

With gold suffering as of late in India, many industry experts and analysts are wondering what the future has in store for the precious metal.

According to a report from the Hindustan Times, citing data from the World Gold Council, demand for gold throughout India dropped by 7 percent on a year-over-year basis between 2010 and 2011, with demand for gold jewelry dropping 14 percent during that time.

“Despite a challenging year, India remained the largest country for gold demand in 2011, and we believe that the strong intrinsic and emotional affinity towards gold in India will continue to fuel demand over the coming year,” Ajay Mitra, managing director, World Gold Council (Middle East and India), told the news source.

As a result of the recent drop, India lost its top spot in the fourth quarter of 2011 to China in terms of gold demand. India continues to lag China in 2012, as China bought 190.6 tons of the metal compared to India's 173 tons, the news source states.

Gold prices ended the week steady as the dollar weakened while investors contemplated an upcoming Federal Reserve meeting. With continued economic uncertainty in the United States, bullion and gold mining stocks are likely to be good bets despite dropping demand in India. Gold exploration continues to flourish in fruitful regions like Sonora, Mexico, and in the United States and Canada.

Gold changes little to end the week

Fri, 20 Apr 2012 17:16:53 GMT

Gold prices changed very little on April 20 due in part to an expected boost in the power of the International Monetary Fund as well as a weakening of the dollar, according to a report from The Wall Street Journal.

The IMF received a cash infusion related to European debt relief at the same time that investors were way in advance of a planned meeting of the Federal Reserve.

"Right now people are feeling that we're not going to get [more stimulus] unless we get a major correction in equities," Adam Klopfenstein, a market strategist at Archer Financial Services, told the news source.

The Federal Open Market Committee meeting has been met with caution from gold traders, and no concrete statement is expected until April 25, the news source stated.

A recent report from Bloomberg Businessweek speculated that gold could gain ground for a second straight day in New York due solely to the weakening dollar. In addition, the euro climbed in comparison with the dollar, giving gold prices further support. With world economies still unstable and gold prices high, investors may consider gold mining stocks as well as bullion. Gold explorationcontinues to flourish in the metal-rich region of Sonora, Mexico, as well as in the United States and Canada.

Copper ends week up

Fri, 20 Apr 2012 17:16:48 GMT

Copper prices ended the week up 2 percent on April 20, posting its best weekly performance since the end of February, according to a report from Reuters.

The metal rallied along with the euro and global equities, helped along by strong first quarter U.S. earnings results and by lowered concerns involving the debt situation in Europe, the news source stated.

"What's driving the turnaround is the fact that the European crisis, in the near-term, has been averted," Adam Sarhan, chief executive of Sarhan Capital, told the news source. "That doesn't mean that it's off the table, it just means that for now, it's receding. That's why all of these risk assets are up today."

Three-month copper rose $140 to finish at $8,190 per ton, close to 4 percent up from its weekly trough established on Monday at the London Metal Exchange, the news source stated.

A recent report from CNBC reveals that an overabundance of copper in China has led the metal to be undermined in some markets. Copper mining stocks are affected by production in metal-rich regions like British Columbia, Canada and in Alaska, as well.

Copper steadies for first time in April

Fri, 20 Apr 2012 13:10:15 GMT

A report from Reuters revealed that copper remained steady on April 19, staying higher than $8,000 per metric ton for the third consecutive day.

The metal consolidated from recent steep losses and offset limitations in its range from macroeconomic concerns and stronger fundamentals in the supply and demand realm, the news source stated.

"Macro sentiment has worsened since the start of the week because of the numbers, it's not mass risk aversion but it's not perfect," VTB Capital analyst Andrey Kryuchenkov, told the news source. "It's time for copper to consolidate because it suffered some losses at the start of month."

Copper has lost nearly 10 percent of its value since April 1, but the metal's prices have since leveled out, with its upside padded by data showing a drop in jobless claims in the United States. Drops in existing home sales and mid-Atlantic factory production also served to cap the metal's upside, the news source stated.

A recent report from The Wall Street Journal revealed that copper imports in China are set to reach a record of 5.5 million tons. Copper mining stocks around the world are affected by the metal's production, which is abundant in Sonora, Mexico, among other areas.

Gold producers competing with ETFs

Fri, 20 Apr 2012 13:02:43 GMT

Brian Hinchcliffe, the CEO of a leading gold producer, recently issued a statement urging fellow gold miners to pay more in dividends if they want to compete with exchange-traded funds.

According to a report from Bloomberg, two years of record buyouts have taken away from shareholder value, so in order to create a useful defense against bullion ETF, Hinchcliffe suggests paying more in dividends.

“The generalist investor is not going to be attracted to an industry that is not judiciously allocating capital, whether it’s in the context of making acquisitions or in the context of dedicating capex,” Hinchcliffe said. “ETFs are a major competing alternative for investment. I’m talking about a 5 percent to an 8 percent dividend policy, that is the best defense against the ETF.”

According to a report from The Motley Fool, some industry executives maintain that ETFs dampen liquidity, but an increase in interest in gold - be it bullion or mining stocks - could benefit all parties involved. In addition, Hinchcliffe added that nearly $100 billion in mergers and acquisitions have led ETFs to compete for investor capital, as overpayment on takeovers has resulted in lower shareholder payments.

Those interested in gold mining stocks might also be wary because of unrest in certain mining regions like South Africa and Peru. However, gold exploration is prospering in the Western Hemisphere with gold mines producing significant returns in Sonora, Mexico, as well as in Canada and the United States, in British Columbia and Alaska, respectively.

Gold advances after four days of losses

Thu, 19 Apr 2012 16:32:00 GMT

Gold futures rebounded on April 19 after several days of posted losses due in part to the dollar losing ground to other major currencies, among other factors.

Also contributing to gold's rally was further talk of soft economic data from the United States.

"Yesterday, gold ended below $1,650 for the second time in three days, mostly on thinning physical demand with the dollar trading higher against most major currencies," stated a report from RTTNews. "Prices were also impacted on cues from the U.S. equity markets that turned in some disappointing earnings."

Another contributor to the gold rally was speculation concerning Spain's debt problems, according to a report from Reuters. The country's debt issues weighed on the euro and increased the potential for risk as investors focused on an auction planned for later in the day.

Although its price per ounce continues to fluctuate, the price of gold has been consistently high since the global economic downturn began. Considering this, investors may consider gold mining stocks in addition to bullion. Gold exploration continues to flourish in metal-rich regions throughout the world. Gold has been an especially fruitful pursuit in Sonora, Mexico, as well as elsewhere in North America, including Alaska and British Columbia, Canada.

Gold declines further

Wed, 18 Apr 2012 15:33:08 GMT

Gold ended April 18 down as demand continued to drop, according to a report from MarketWatch.

The precious metal's futures ended at their lowest point in close to two weeks due in part to new U.S. earnings figures and lessening demand, as well as a higher dollar compared to other currencies, the news source stated.

In India, where a jeweler and bullion trader strike recently ended, physical demand for gold is also down, with a large number of imports expanding the country's account deficit.

“That said, demand could soon pick up again noticeably, as next week will see one of the highest Hindu festivals,” analysts at Commerzbank wrote in a note. “According to industry sources, high sales of gold are expected, partly because demand has built up as a result of the strike.”

Gold stocks also dropped in Canada, according to a report from Bloomberg Businessweek. The drop marked the third time in four days that gold futures declined, due in part to a strengthening of the U.S. dollar. But in areas like British Columbia, gold exploration forges ahead, as it does in other resource-rich regions like Sonora, Mexico and Alaska.

Gold slips with dollar strengthening

Wed, 18 Apr 2012 09:57:52 GMT

Gold dropped 0.3 percent in the Comex division of the New York Mercantile Exchange on April 17 due in part to the strengthening of the dollar, according to The Wall Street Journal.

The International Monetary Fund issued comments warning that euro zone activities are leading to the risk of a "prolonged period of deflation." This caused the dollar to strengthen and gold to dip slightly to $1,644.90 per ounce, the news source stated.

"It is … critical to break the adverse feedback loops between sub-par growth, deteriorating fiscal positions, increasing bank recapitalization needs and deleveraging, which raise the risk of a prolonged period of deflation," the IMF wrote in the new edition of its World Economic Outlook.

In his Real Money column, Jim Cramer recently wrote why gold remains compelling despite speculation to the contrary. He wrote that he doesn't look at gold as a safety net that rises only in the case of an inflationary environment. He added it can be viewed as an alternative to the euro. Given Cramer's outlook and the continued high price of gold, investors might consider both bullion and mining stocks. Though mining operations in regions of Africa and South America have been in turmoil lately, gold exploration is prevalent throughout the world, including in Sonora, Mexico, and Alaska and British Columbia.

Gold demand in India suffering

Wed, 18 Apr 2012 09:57:47 GMT

A new report from The Wall Street Journal reveals that gold demand in India has dropped substantially on the heels of a jeweler and bullion trader strike.

Demand for the precious metal in the country dropped around 50 percent compared to this time last year, with high prices and a less than optimistic investment outlook preceding a festival that typically leads to increased buying, the news source stated.

"Around this time, we [usually] sell 500-600 kilograms of gold daily," Suresh Hundia, former president of the Bombay Bullion Association, said in the trade center of Mumbai. "But this time, purchases are down to 200-300 kilos."

Prithviraj Kothari, president of the Bombay Bullion Association, added that gold purchases during the week will likely not exceed 15 metric tons, compared to 30 to 40 tons last year.

According to a recent report from Bloomberg Businessweek, gold futures for June delivery climbed 0.3 percent on April 17, to $1,653.80 per ounce as of 12:07 p.m. on the Comex division of the New York Mercantile Exchange. Regardless of dampened demand in India, gold exploration continues to flourish in metal-rich regions like in Sonora, Mexico, as well as in Canada and the United States.

Silver reaches new high

Wed, 18 Apr 2012 09:57:41 GMT

With gold prices continuing to fluctuate on the Comex division of the New York Mercantile Exchange, silver prices climbed to their highest level of the week on April 17, according to a report from Resource Investor.

The price of silver reached $31.81 an ounce with other industrial commodities flattening and government bond prices dropping, the news source stated. Comex warehouses also saw large stockpiles of silver.

"When you are seeing people delivering into Comex, it is typically because they have nothing better to do with the metal," David Jollie, strategic analyst at Mitsui Precious Metals in London, told the news source.

When it comes to investing strategies for silver mining stocks, Vishal Gupta, a geologist turned analyst, recently sat down with The Gold Report for an interview. Gupta also addressed gold, silver and copper investing strategies with the publication. He identified small-cap companies that could take advantage of mineralogy and make it profit for them moving forward. However, to experience profits, these companies must recognize that metals are subject not only to the laws of economics but of physics.

Some careers in gold mining begin with academics

Tue, 17 Apr 2012 16:48:31 GMT

A career in gold exploration and mining can start at the academic level, as evidenced by Travis Howard.

According to a Reuters report, Howard pursued a double major in mechanical engineering and metallurgy at the Colorado School of Mines and ended up taking a job at 21 years old with a leading gold corporation for $64,000 per year plus bonuses.

However, the mining industry has seen ups and downs, and degree programs have suffered in some instances because of it, Reuters stated.

“When the mining industry was not in vogue, the colleges didn’t get the numbers coming in,” Nick Eastwood, president of MinSouth and a consultant at Hunter Personnel, told the news source. “So they shut their courses and got rid of the people who taught it.”

With the price of gold soaring, now could be a great time for students to consider these programs again. When it comes to gold mining, Meadow Bay Gold Chief Geologist Doug Oliver recently met with James West, host of Midas Letter Money, to discuss the Atlanta Gold Mine. In addition to this successful mine in the U.S. Southwest, Gold mines are flourishing around the world including in Sonora, Mexico, and in Alaska and British Columbia.

Gold futures start the week down slightly

Tue, 17 Apr 2012 09:57:23 GMT

Gold continues to rise and fall with stocks as well as the strength as the dollar, as was evidenced in activity on April 16.

According to a report from The Wall Street Journal, gold futures for June delivery on the Comex division of the New York Mercantile Exchange dropped 0.2 percent to $1,656.40 per ounce as the dollar struggled compared to other currencies and equity markets moved higher.

"We anticipate gold physical buying to come to the fore should gold dip below $1,640," analysts at Standard Bank told the news source.

In a note to his clients, Jon Nadler, senior metals analyst at Kitco Metals, added the euro dropping close to $1.30 against the dollar did not help gold, the news source stated.

Gold exploration is ramping up around the world as construction has begun on the Kibali project in the Democratic Republic of Congo. When completed, it is expected to be one of the largest gold mines in Africa. Gold exploration is also increasing in metal-rich regions like Alaska, British Columbia and Sonora, Mexico.

Reuters: Gold ETFs trying at tax time

Tue, 17 Apr 2012 09:57:17 GMT

A recent report from Reuters reveals that gold exchange-traded funds could prove tricky for investors during tax season.

The report states that ETFs offer tax advantages that traditional mutual funds do not, but tax matters can be complex, hinging on such issues as whether the ETF owns bullion or futures.

"We've seen a lot of gold ETFs this year, and we're pulling out the last few hairs we have over them," Bill Fleming, a managing director in the personal financial services practice of PricewaterhouseCoopers, tells the news source. "A lot of ETFs have quarterly or monthly dispositions to pay for expenses. All of these are small dollar amounts, but you still have to figure out what your cost basis is."

For tax purposes, gold, along with silver and other metals, are taxed at the special collectibles tax rate of 28 percent and, as Reuters puts it, are largely considered the same as art or baseball cards. This is a higher percentage than the 15 percent maximum rate typically levied of long-term gains from stock ETFs.

Investors who have wrapped up their 2011 taxes and are looking forward might consider gold mining stocks, which according to Wall Street Daily are poised to go up in value. Gold mining stocks are affected on a global scale, as China's importing is expected to drive these stocks up. In addition, gold-rich regions like Mexico, Alaska and British Columbia continue to draw mining interest and efforts.

Gold futures end week down

Mon, 16 Apr 2012 10:31:56 GMT

Gold futures retreated on April 13 due in part to increasing worries about global economic health, as well as a strengthening dollar leading to traders paring their holdings of the metal, according to a report from The Wall Street Journal.

On the Comex division of the New York Mercantile Exchange, gold was down 1.2 percent, or $20.40, to settle at $1,660.20 per ounce. This decline was also spurred by a report showing slower than expected economic growth in China, the WSJ reported.

"One of the bigger risks to being long gold is if the risk-off trade returns," Dave Meger, director of metals trading with Vision Financial Markets, told the news source, referring to bets on rising prices.

He added that gold could experience more losses in the near future should money managers react in anticipation of Europe's financial situation worsening.

In other economic news, the number of Americans filing for unemployment benefits reached a two-month high in the first week of April, with more applications reported on a revised basis. Despite the strengthening dollar, these jobs numbers indicate a still tenuous economy, which could drive gold demand. Gold mining stocks could also benefit, and investors may want to consider mining operations in stable, resource-rich areas like British Columbia and Alaska.

Fear drives copper down on Friday the 13th

Mon, 16 Apr 2012 10:31:51 GMT

Copper dropped below $8,000 per ton on April 13 for the first time in three months, due in part to fear that China's economic recovery will slow further, according to a Reuters report.

The metal finished the week down 4 percent due to China, which contributes 40 percent of the world's overall copper demand, reporting only 8.1 percent growth for the first quarter of 2012, the lowest rate in nearly three years and less than the 8.3 percent expected by the market, the news source stated.

"We're still expecting a copper deficit for this year, but the probability of one diminishes every time we get negative data from China," Bart Melek, head commodity strategist with TD Bank Financial Group, told the news source.

In addition to copper slowing, Chile's peso weakened, as gold is the country's biggest export. The country also was affected by China's economic slowdown. Copper mining stocks and exploration continue to ramp up in metal-rich regions like Sonora, Mexico.

Australia mining industry in turmoil

Fri, 13 Apr 2012 16:36:34 GMT

In Australia, the mining industry recently broke its advertising agreement with the government of Prime Minister Julia Gillard and has launched a preemptive strike against the possibility of future tax hikes, according to a report from The Australian.

New Queensland Premier Campbell Newman added a further wrinkle to the situation by maintaining that all rent tax from mining operations in Queensland will be spent on infrastructure projects in that state, which according to the source is not likely to please Gillard.

"What we've said all along is we have no argument with the federal government as long as the super profits come back to Queenslanders," Newman said. "We're saying our principle here is if there's a mining project in Queensland that's paying this tax and a dollar is paid, a dollar has got to come back to Queensland to roads, to infrastructure across the state and, with the greatest respect to other states, not to build roads and infrastructure there."

When it comes to gold exploration, South Africa's Modikwa platinum mine in the Limpopo region recently settled its strike, but despite that, the nation's overall mine production dropped by 14.5 percent on a year-over-year basis at the end of February, according to a report from Mining Weekly.

Given the controversies surrounding mines in Australia and South Africa, investors might consider operations in more stable areas, such as Alaska, British Columbia and Sonora, Mexico.

Gold futures climb in the US

Fri, 13 Apr 2012 12:14:14 GMT

Gold futures experienced gains on April 12 after U.S. stocks opened higher, according to a report from The Wall Street Journal.

The Comex division of the New York Mercantile Exchange found June contracts rose $12.80, or 0.8 percent, due in part to disappointing economic data underlying expectations that the U.S. Federal Reserve will stay consistent with its accommodative monetary policy, the news source stated.

"In order for the gold bull market to remain healthy, strong emerging markets buying - particularly from China and India - is necessary," James Steel, an analyst with HSBC, wrote in a note quoted by the WSJ.

In Canada, gold mining stocks rose on April 12 as they recovered from a series of losses, with gold miners and other materials issues continuing to recover following encouraging news from both European and U.S. policymakers, Reuters reported. With these stocks up in Canada, buyers might consider mining operations in resource-rich British Columbia.

The Toronto Stock Exchange's S and P/TSX composite index grew 73.24 points, or 0.6 percent, to reach 12,100, Reuters stated. Barry Schwartz, vice president and portfolio manager at Baskin Financial Services, asserted that commodities are leading the way.

South Africa mining production drops significantly

Thu, 12 Apr 2012 17:05:21 GMT

A new report from Mining Weekly, citing data released by Statistics South Africa, revealed the nation's mine production dropped 14.5 percent on a year-over-year basis ending in February.

The revised numbers for January revealed a 4.9 decrease, but the production recorded in February showed the nation experienced its largest fall since March 2008, when mine production dropped 16.8 percent, the news source stated. In addition, mining production is not expected to improve over the next several months due in part to poor prospects and slow expansion domestically.

“These numbers indicate that mining will probably make a negative contribution to the gross domestic product numbers for the first quarter,” the Stats SA report stated.

The Modikwa platinum mine in the Limpopo region of South Africa recently reached a resolution to its strike but it's unknown when or if gold exploration will recover in the area. However, Alaska, Mexico and British Columbia remain fruitful avenues for gold mining, among other metals.

Canada's gold mining stocks rise

Thu, 12 Apr 2012 17:05:18 GMT

Gold mining stocks in Canada rose, pushing Toronto's main stock index higher for a second straight session on April 12, according to a Reuters report.

The Toronto Stock Exchange's S and P/TSX composite index was up 73.24 points, or 0.6 percent, as of 10:21 a.m. on April 12, the news source stated.

"The commodities are leading the charge after being kicked in the shins this year and last year," Barry Schwartz, vice president and portfolio manager at Baskin Financial Services, told the news source. "People are sniffing around for bargains."

Despite fears of advancing issues in the European debt crisis, Benoit Couere, European Central Bank executive board member, issued a statement saying the ECB is still considering its bond-buying program as an alternative in easing funding pressures for countries facing debt issues, the news source stated.

A recent report from Forbes revealed that gold is becoming more expensive than platinum, which is not only rare but could also be alarming. Since the collapse of Lehman Brothers, the gold price in dollars has risen 130 percent, the news source stated. Given the extremely high price of gold, investors might be wise to consider mining operations in resource-rich areas like Mexico, Alaska and British Columbia.

Trapped Peruvian miners freed

Wed, 11 Apr 2012 17:22:25 GMT

Nine miners were trapped for six days in a copper mine in Peru, but they are safe now.

According to The Associated Press, the miners, ranging in age from 23 to 58, were trapped by a cave-in that was caused by explosions they set six days ago. They exited from the mine without assistance.

“It’s pretty ugly inside,” Edwin Bellido, one of the rescued men, told RPP radio. “We slept on the ground on muddy plastic.”

The miners were greeted by President Ollanta Humala, who had spent the night awaiting the emergence of the trapped miners at the location of the incident, 150 miles southeast of the country's capital, Lima, the AP stated.

While the story in Peru had a happy ending, it is only one of number of incidents that have roiled mining operations worldwide in recent weeks. For example, In South Africa, the Modikwa platinum mine in the Limpopo region recently reached a resolution to its strike situation. The dispute in wages at the mine, a joint venture between African Rainbow Minerals and Anglo American Platinum, was resolved on April 10, Mining Weekly reported.

Gold exploration and copper mining continue to thrive, however, in metal-rich regions like Alaska, British Columbia and Mexico.

Copper, gold steady

Wed, 11 Apr 2012 17:20:03 GMT

The price of copper has steadied following a plunge, ending near $8,000 per metric ton on April 11 following the previous session's 4 percent drop, according to a Reuters report.

However, traders insisted the concerns of slowing growth in the Chinese and U.S. economies could lead to another round of selling, and volume on the 11th was again heavier than usual, with selling prevalent until U.S. and European equities steadied and buyers stepped in to take advantage of the low copper prices, the news source stated.

"Copper is following with one eye absolutely peeled to the stock market," Dennis Gartman, publisher of The Gartman Letter, told the news source. "As goes the stock market, so shall go the base metals."

For the second straight session, copper volume was significant on the Comex divison of the New York Mercantile Exchange. Gold exploration stocks and bullion were also accounted for on the COMEX. The metal steadied also, after seeing increases for four consecutive days due to the intensifying euro zone debt crisis and other issues. Gold mining continues to flourish in metal-rich areas like Mexico, Alaska and British Columbia.

Gold projected to peak next year

Wed, 11 Apr 2012 16:09:16 GMT

Gold Fields Mineral Services is projecting that gold could hit its peak in 2013 following a 12-year bull run, according to a Reuters report.

The chairman of the metals consultancy announced that a record high gold price of more than $2,000 per ounce could signal the peak of the metal's bull run, with the monetary policy in influential economies beginning to stabilize, the news source stated.

"What we're seeing ... is a postponement of the next leg higher in prices," Philip Klapwijk, chairman of GFMS, told the news source. "The $2,000 an ounce level being surpassed is probably looking more like a story for the first half of 2013 than something we will see in the second half of this year."

For the remainder of 2012, Klapwijk added that gold is expected to trade between $1,530 and $1,920 per ounce, with an average price of $1,731 an ounce.

In India, gold sales have dropped despite the the end of a recent strike over bullion taxes. Daily sales of the metal were down 80 percent throughout the country on April 9 compared to the same period last year. However, with gold prices maintaining high levels, gold exploration continues to flourish in regions like Mexico and British Columbia.

India reports drop in gold sales

Tue, 10 Apr 2012 16:59:58 GMT

The strike over bullion taxes in India is over but the first day following normal activity saw a significant drop in gold sales, according to a report from The Times of India.

Daily sales of the precious metal were down 80 percent in India for April 9 compared to the same time last year, which is a surprise as the country is currently in peak festival season. Typically, roughly seven tons of gold would be sold every day to jewelers, with stocks of between 10 and 12 tons of gold having been accumulated over the past month, the news source stated.

"We have delivered pending orders, but there is no work today as gold prices have gone up," Kumar Jain, vice president of the Mumbai Jewellers Association, told the news source.

Prithviraj Kothari, president of the Bombay Bullion Association, the largest trade body in India, added that a correction in gold to the tune of $1,500 per ounce could help physical players, but global gold prices were at about $1,655.16 per ounce as of April 10, the news source stated.

According to a report from CNBC, many analysts predict that the gold bull market has not yet ended despite momentary price drops. Meanwhile, gold exploration and mining continues to ramp up in resource-rich areas, including Mexico, British Columbia and Alaska.

Modikwa platinum mine ends strike

Tue, 10 Apr 2012 16:59:53 GMT

The ongoing strike at the Modikwa platinum mine in the Limpopo region of South Africa has finally reached a resolution, according to a report from Mining Weekly.

The dispute in wages at the mine, a joint venture between Anglo American Platinum and African Rainbow Minerals, has been resolved, as ARM confirmed on April 10 that Modikwa signed a two-year agreement with the National Union of Mineworkers, which will result in roughly 3,000 previously striking workers returning to work and resuming production on April 11, the news source stated.

The mine, which specializes in gold exploration ventures as well as the production of copper, platinum and other precious metals, has been the location of a strike, with the most recent news indicating the National Union of Mineworkers was threatening to intensify its work stoppage when the parties failed to reach an agreement.

“The final offer is as much as the mine is able do," a spokesperson for ARM told Mining Weekly Online in an interview at the time that deal fell through. "Any more than this offer would make the mine unsustainable and would lead to closure of the mine."

In addition to metal-rich regions like South Africa, gold and other metal exploration is taking place in fruitful areas like Mexico, Alaska and British Columbia, which investors might consider due to the stability of their labor forces.

Bullion taxes strike over in India

Tue, 10 Apr 2012 13:35:43 GMT

Following a 20-day strike over new bullion taxes, gold imports in India are expected to resume, according to a report from The Wall Street Journal.

Jewelers in the nation are planning to restock to accommodate the return of shoppers following the end of the strike, with gold demand expected to increase. Imports for April and May are projected to reach 100 metric tons, Prithviraj Kothari, president of the Bombay Bullion Association, told the news source.

"I was waiting for the strike to end as I wanted to order a pair of bangles for my wife's birthday in June," Chetan Dani, a 44-year-old businessman who was at Mumbai's Zaveri Bazaar, told the news source.

Despite higher taxes on the metal, shoppers in India returned to the recently reopened jewelry stores to make their demand known.

Historically, the nation imposed strict regulations when it came to importing gold but the government recently granted permission to Titan Industries for directly importing the metal. It is expected the nation will do the same for other private companies in the future.

With demand increasing in the huge Indian market, gold mining operations may benefit, and investors might be especially interested in mines located in stable, resource-rich areas like British Columbia and Alaska.

Copper futures drop 2 percent

Tue, 10 Apr 2012 13:35:40 GMT

Copper futures dropped 2 percent on April 9 in New York due in part to weak employment data in the United States and rising inflation in China, according to a Reuters report.

Both these economic factors contributed to softer activity in two of the world's largest economies, with the COMEX May copper contract dropping $7.55 to settle at $3.72 a pound, which was close to the bottom of its 2012 range, the news source stated.

The jobs situation also contributed to the drop, with Bureau of Labor Statistics data showing the United States added 120,000 jobs last month,which was below expectations.

"I think you're going to start making new lows soon," Zachary Oxman, managing director with TrendMax in Encinitas, California, told the news source. "There's not enough here to keep us where we are ... $3.60's a near-term target. If things get even bleaker, $3.50 by mid-year is not at all out of the realm of possibility."

Despite the recent drop in prices, copper and copper mining stocks are likely to be good long-term investments, as the global copper market is expected to reach 27.5 million metric tons over the next five years, according to a new report from Global Industry Analysts.

Gold climbs 1 percent

Tue, 10 Apr 2012 10:22:18 GMT

Gold climbed roughly 1 percent on April 9 as it broke rank with other equities and commodities, according to a Reuters report.

The rise followed less than ideal U.S. jobs information, which contributed to new talk that the U.S. Federal Reserve could provide further stimulus to the nation's economy, the news source stated.

"In the next few months, the market will not only begin to price in the Fed's sustained policy but will price in for further monetary action," James Dailey, portfolio manager of the TEAM Asset Strategy Fund, told the news source.

The metal landed at $1,643.50 per ounce as of 1:21 p.m. EST, with gold futures for June delivery up $14.70 per ounce to $1,644.80, the news source stated.

Gold ended last week up 0.5 percent, or $10, showing slight gains after the metal experienced its first significant loss in three weeks. Gold exploration continues to flourish around the world, including in metal-rich regions like Alaska, British Columbia and Mexico.

Gold imports not expected to rise in India

Fri, 06 Apr 2012 17:00:53 GMT

In India, bullion traders and jewelers have called off their 21-day nationwide strike opposing an increase in import duty on gold, which could lead to a surge in demand, according to a report published in the Economic Times.

The added demand is expected to create extra pressure on artisans with festival and marriage season underway, and gold prices will impact the volume of imports, the news source stated.

"Jewelery manufacturing was completely stopped during the 21-day strike," Prithivraj Kothari, president of the Bombay Bullion Association, told PTI, according to the Economic Times. Kothari added that with 5-10 tons of gold in inventory, imports may not rise despite spiking demand.

He also pointed out that March is a lean period for jewelers and predicted imports are likely to be less than 125 tons for the first quarter of the year.

The resolution of the Indian strike means the country is no longer one of the places with a troubled gold market, although labor unrest continues to affect mining operations in other locations, such as South Africa. However, gold exploration continues to prosper in metal-rich regions like Alaska, Mexico and British Columbia.

As a nation, India has historically had strict regulations when it comes to importing gold. However, Titan Industries was recently granted permission to directly import the precious metal, according to a report from the Wall Street Journal, and the nation is considering allowing other private companies to do the same in the future.

Gold could hit record highs by end of 2012

Fri, 06 Apr 2012 17:00:42 GMT

One London-based fund manager is predicting that oil and gold will reach new highs by the time 2012 is over.

According to a Reuters report, oil and gold prices could hit record highs this year, due in part to continuing instability in the Middle East and sovereign debt problems, as Angelos Damaskos, chief executive of Sector Investment Managers, announced its Junior Oils fund has already spiked by 35 percent this year.

He added that he expects gold prices to rise to $2,000 an ounce in part due to slow growth in advanced economies, but the same may not be able to be said for silver.

"That is not very positive for the market but positive for gold," he told the news source. "We still see gold keeping a fairly strong level at just under $1,700. Despite all this highlighted volatility and uncertainty, we still think gold is a preferred safe haven asset."

Echoing Damaskos, Eugen Weinberg, head of commodities research at Commerzbank AG, recently told Bloomberg Television's "The Pulse" that he expects gold to reach an "all-time high" by the end of the year.

Gold exploration is expected to continue to prosper, as well. Investors may be wise to consider mines in metal-rich regions with stable mining operations, such as Mexico, British Columbia and Alaska.

Gold recovers from recent decline

Fri, 06 Apr 2012 17:00:34 GMT

Gold started to recover on April 5 after tumbling to a near three-month low the day before, with lower prices attracting some buyers, according to a Reuters report.

However, any gains made on those weak prices were halted by continued pessimism on new monetary stimulus from the United States, coupled with signs indicating a stronger dollar. For April 5, spot gold was up 0.2 percent for $1,622.30 per ounce, with U.S. gold futures for June delivery up $9.60 per ounce.

"The main pressure has come from the (Fed) minutes," Peter Fertig, a consultant at Quantitative Commodity Research, told the news source. "The minutes did not show any willingness to implement (a fresh round of quantitative easing) which the market has hoped for and that of course has strengthened the U.S. dollar."

He added the Spanish bond auction is also a factor that is contributing to U.S. dollar support and is also putting pressure on the euro.

Gold exploration was in the news recently with border closures and sanctions on Mali affecting gold companies with mines in the region. However, gold-rich regions like Canada, Mexico and British Columbia do not have the limiting sanctions imposed on areas like Mali.

Modikwa mine withdraws offer, NUM continues strike

Fri, 06 Apr 2012 17:00:25 GMT

The National Union of Mineworkers threatened to intensify its strike at the Modikwa platinum mine in Limpopo, South Africa, which specializes in copper mining in addition to platinum and gold.

According to a report from Mining Weekly, the mine, a venture of Anglo American Platinum and African Rainbow Minerals, withdrew from negotiations with the NUM after the protracted collective bargaining process failed to produce an agreement after months of talks.

“The final offer is as much as the mine is able do," a spokesperson for ARM told Mining Weekly Online in an interview. "Any more than this offer would make the mine unsustainable and would lead to closure of the mine."

The mine added in a statement that the collective bargaining process and the strike have failed the parties involved.

Copper mining stocks could be affected by the strike, although the metal rose in recent trading. According to The Wall Street Journal, copper rose slightly on the Comex division of the New York Mercantile Exchange on April 5. It climbed 0.1 percent to settle at $3.7955 per pound. Those interested in copper mining stocks but concerned about the unrest in South Africa might look at more stable operations, such as those in Sonora, Mexico.

Silver drops with gold

Thu, 05 Apr 2012 15:13:08 GMT

Silver dropped 6.7 percent on April 4 on the Comex division of the New York Mercantile Exchange, according to a Wall Street Journal report.

The metal, which is generally more volatile than gold as it is more thinly traded, fell to $31.044 a troy ounce, in contrast to gold futures, which dropped 3.5 percent to a 12-week low of $1,614.10, the news source stated.

"At this point you have major repricing across all asset classes going on and I don't think it's over," Frank McGhee, head precious metals dealer at Integrated Brokerage Services, told the news source.

Jim Steel, metals analyst at HSBC, wrote in a research note that national holiday celebrations and a strike contributed to the absence of China and India, two of the largest bullion markets in the world, which led many potential buyers to leave the market.

When it comes to silver mining stocks and the future of the metal, Jim Rogers, chairman of Rogers Holdings, recently told Bloomberg Businessweek that he not optimistic about their prices and expects them to decline further, when, in his case, he will buy more. When it comes time to buy, investors may want to investigate operations in politically stable, metal-rich regions like British Columbia and Alaska.

Turmoil in Mali could affect gold mining

Thu, 05 Apr 2012 13:20:32 GMT

Border closures and the aftermath of sanctions imposed on Mali could affect gold companies with mines in the area, according to a recent Reuters report.

Mali's largest investor, Randgold Resources, recently announced that it has enough fuel supplies to wait out any immediate changes in how it does business, the news source stated.

The Mali region could see its gold exploration and mining industries negatively affected by recent turmoil and possible sanctions.

"Those sanctions haven't all been applied yet," Mark Bristow, chief executive at Randgold Resources, told the news source. "They are being applied, I believe, but we are still shipping fuel and goods through some of the borders."

In India, private companies have been prohibited from directly importing gold, but that could soon change. A recent report from the Wall Street Journal indicated the nation has already started allowing Titan Industries to directly import gold and may soon take that same approach to other private companies. Although Mali's mines might be in difficult straits, mining operations in other parts of the world - such as Canada and Mexico - could benefit from direct importation into the huge Indian market.

Gold closes at 12-week low

Wed, 04 Apr 2012 16:37:07 GMT

The price of gold dropped 1 percent on April 4, due in part to news from the U.S. Federal Reserve, according to a Reuters report.

The drop came after the release of the minutes of the Fed's March meeting, which indicated a new round of monetary stimulus is unlikely, as the U.S. economy has shown signs of improvement and the dollar has gained strength.

"The minutes by the Fed indicated that there would be no quantitative easing unless the economy takes a dip for the worse - gold immediately sold off on that and now the dollar is stronger too, so that's weighing on gold," Walter de Wet, an analyst at Standard Bank, told the news source.

He added that he would not be surprised if gold dropped to the lower end of $1,600, but it would not fall significantly below that benchmark, the news source stated.

Gold exploration continues to help stir the global economy, with metal-rich regions like British Columbia, Mexico and Alaska contributing the worldwide supply.

Gold drops following Fed meeting

Wed, 04 Apr 2012 13:42:27 GMT

Following the latest Federal Open Market Committee meeting, which showed no indication of further monetary stimulus in the United States, gold futures fell in after-market trading, according to a report from the Wall Street Journal.

The most actively traded contract, gold for June delivery, settled at $1,672 per ounce on the New York Mercantile Exchange's Comex division,. This represented a loss of 0.5 percent, or $7.70, and those losses were extended by 2 percent following the news from the FOMC, the news source stated.

"They're still talking about interest rates remaining low for an extended time and it's positive," Erica Rannestad, a commodity analyst with CPM Group, a metals consultancy group, told the news source. "But it's not as positive as the first time it was stated."

Gold is a hot commodity in India as well as other parts of the globe, although Indian jewelers and bullion traders have recently been on strike. A report from the Wall Street Journal revealed the country has started allowing Titan Industries, a maker of jewelry and watches, to import gold directly, and will consider allowing other private companies to do the same. Gold exploration remains a popular and lucrative activity in metal-rich regions like Mexico, Alaska and British Columbia.

India allowing companies to directly import gold

Tue, 03 Apr 2012 13:32:35 GMT

A recent report from the Wall Street Journal reveals that India has begun allowing Titan Industries, maker of jewelry and watches, to directly import gold for its purposes.

Soon, other private companies in India may be allowed to import the precious metal instead of having to route it through designated state-run agencies or banks, as the nation continues to suffer from a nationwide strike by jewelers and bullion traders that reached its 17th day on April 2, the news source stated.

"We have agreed in principle to allow Titan to import gold on its own," Anup Pujari, director general of foreign trade, told the news source. "The company will need to get a license from us as gold is a restricted commodity."

He added the central bank has already given its approval to allow other private companies to directly import their gold. Meanwhile, gold continues its rise to begin April, climbing $7.80, and 0.5 percent, to hit $1,679.70 per ounce on the New York Mercantile Exchange, a recent report from MarketWatch revealed. Despite the turmoil in India and in gold-rich South Africa and Peru, gold exploration efforts continue to prosper in regions like Alaska, Mexico and British Columbia.

Gold continues rise

Mon, 02 Apr 2012 16:49:30 GMT

A positive U.S. manufacturing survey caused gold futures to rise on April 2, but it was silver and copper that led the metal gains, according to a report from MarketWatch.

Gold moved parallel to U.S. stocks and oil, rising $7.80 to 0.5 percent to reach $1,679.70 per ounce on the Comex division of the New York Mercantile Exchange, the news source stated, extending the gains it made on March 30, which pushed it past 6 percent for the quarter.

“I still believe we are range bound on gold for the near term between $1,600-$1,800 per ounce," Jeff Wright, managing director and senior research analyst at Global Hunter Securities, told the news source. He added the range could change if the U.S. Federal Reserve enacts further quantitative easing or the debt situation in Europe improves or deteriorates.

In a separate report from the Wall Street Journal, it was revealed that funds favored gold in light of the second quarter allocation of assets, with gold also strengthening as the dollar moderated against other currencies. An inflow of investment funds also contributed to the rise. Gold exploration remains a crucial part of the global economy, with fruitful work being done in Mexico, Alaska and British Columbia, among other regions.

Gold ends quarter, week up

Fri, 30 Mar 2012 15:56:57 GMT

Gold futures made a jump on March 30, leading to them ending the quarter up by more than 6 percent. The rebound snapped a three-day streak of losses as the eurozone finance minister raised the region's rescue fund, according to a report from the Wall Street Journal.

On the Comex division of the New York Mercantile Exchange, gold futures set for June delivery rose 1 percent to $1,671.90 per ounce. Darin Newsom, a senior analyst at Telvent DTN in Omaha, told the news source that books-squaring at the end of both the month and quarter helped drive the gain in gold.

He added that economic news remains mixed and investors do not want to end the quarter without adding gold to their portfolios, which could indicate continued growth at least for the next week.

Gold exploration could benefit from the 6 percent jump in gold futures and it may be time to join in on the gold frenzy, suggests a recent article from The Washington Post. Katherine Boyle writes that investing in bullion, gold-backed exchange-traded funds and gold mines could all be smart moves given the current economic conditions and forecast.

Kalulushi miners strike

Fri, 30 Mar 2012 15:56:48 GMT

Miners at the Chibuluma South Mine Plc in Kalulushi entered the second day of work stoppage on March 30, following conflicts with management, according to a report from The Post Online.

The mine, located in the Copperbelt Province in north central Zambia, has been at a standstill and management has allegedly threatened to dismiss all the workers if they fail to resume their duties. The miners have vowed not to return until management withdraws the exculpatory letters that were given to roughly 70 miners, the news source stated.

"We are getting into the meeting with a spirit of addressing these problems," Charles Mukuka, acting president of the Mineworkers Union of Zambia, told the news source. "We don't want our people to lose out and of course they should to get back to work and management must address their concerns so that there is mutual understanding between the two parties."

It is yet to be seen how the strike will affect copper mining stocks on a global scale. Meanwhile, at BHP Billiton's central Queensland mines in Australia, roughly 3,500 miners went on strike after talks broke down, according to ABC. However, mineral and precious metal-rich regions like Alaska, Mexico and British Columbia are ripe for mining activities.

Gold drops by more than 1 percent

Fri, 30 Mar 2012 13:32:08 GMT

The price of gold dropped by more than 1 percent on March 29 in light of the dollar index recovering from a near one-month low and a drop in the price of oil, which caused the precious metal to hit $1,655 per ounce, according to a Reuters report.

Specifically, spot gold dropped 0.6 percent and is on track for a third session of losses following a rally earlier in the week, which was caused in part by comments from the Federal Reserve that the accommodative monetary policy will continue in the United States, the news source stated.

"We have a forecast for an average price for the year of $1,450, so we are not surprised that gold prices are struggling to go higher," Nic Brown, head of commodity research at Natixis, told the news source. "We think as time goes on the likelihood is that prices will probably soften further."

Gold mining stocks have been falling as of late, with many investors moving their assets over to to gold bullion. According to a Gold Investing News report, nations like China and India are putting pressure their gold markets and are resorting to fear tactics in some scenarios to accomplish these goals. Indian bullion dealers and others in the gold industry have gone on strike to protest government actions to move the nation's cash away from gold. Stock prices have also suffered due to political unrest in gold-rich countries like Mali, South Africa and Peru. However, mining operations continue to thrive in other areas, such as Mexico, British Columbia and Alaska.

Gold mines in search of investors

Thu, 29 Mar 2012 17:06:50 GMT

Executives of some of the top gold firms in the world are tightening operational procedures and boosting dividends as they court investors, according to a Reuters report.

Main players in the gold exploration and mining industry convened at the Reuters Mining and Metals Summit this week to address the issue of losing investors who have opted to put their funds toward gold bullion in lieu of mining companies, the news source stated.

"Over the last year or two, investors who love gold ... have been quite disappointed in the general gold sector's performance in terms of execution, be it capital blowouts, or a range of operating issues," Chief Executive Greg Hawkins of African Barrick Gold told the summit, which was held in London.

Tom Massey, head of Citigroup's metals and mining and chemicals investment banking teams for the Middle East, Africa and Europe, added that exchange-traded funds could be responsible for damaging gold company stocks demand.

Although gold mining and exploration varies from region to region, mines have proven fruitful in some parts of the globe, including in Alaska, Mexico and British Columbia.

Gold continues to retreat

Thu, 29 Mar 2012 17:06:37 GMT

Gold prices further retreated from a recent two-week high as commodities and equities fell under pressure from a sliding euro, and momentum from U.S. monetary easing expectations dwindled, according to a report from Reuters.

On March 27, spot prices climbed as high as $1,696.20 an ounce following the Federal Reserve's comments on continuing a simplified monetary policy in order to encourage growth and lower the unemployment rate, but, the news source stated, the rally fell short.

"Notice how $1700/1690 held sturdy," Andrey Kryuchenkov, an analyst at VTB Capital, told the news source. "(This is) not a massive pullback, $1,640 will certainly hold for now, but a tad more is possible."

Despite fluctuating gold mining stocks and the price of the precious metal, recent analysis from a separate Reuters report reveals that gold may continue to fluctuate as the global economic crisis cools down. After a strong 2012, bullion prices have lost significant momentum over the past several days as the worldwide economy deals with its numerous issues and attempts to level itself out. However, historical evidence points the value of bullion and mining stocks, particularly those tied to operations in politically stable and resource-rich regions like British Columbia and Alaska.

Australian miners strike

Wed, 28 Mar 2012 14:43:23 GMT

Following unproductive negotiations over work conditions, workers at BHP Billton's Bowen Basin mines in Australia went on strike starting the night of March 27, according to a report from Reuters.

The company's seven mines could be at a standstill, with roughly 3,500 unionised workers going on strike in response to a report that management was reneging on in-principle clauses it previously agreed to.

"BMA has reached an impasse with the unions and believes it's time for employees to again have their say," Fiona Martin, BHP spokeswoman, told the news source. "An employee ballot will be organized sometime towards the end of April and that will provide guidance on the way forward."

Gold exploration has been snarled in other parts of the world that are also seeing striking miners. At Modikwa Platinum in Limpopo, South Africa, the government recently postponed handing over the title deeds on the Tubatse mining land as the result of a miner strike. Despite the mining troubles in Australia and South Africa, mining operations remain fruitful in other parts of the world, including in British Columbia, Alaska and Mexico.

Gold drops from two-week high

Tue, 27 Mar 2012 17:24:29 GMT

Gold prices fell only $4 shy of $1,700 per ounce and laid off two-week highs on March 26, as the market tracked a weaker euro and purchasing ahead of the COMEX March options expiry eased up, according to a report from Reuters.

For April, U.S. gold futures reached $1,684.9 per ounce, down from the $1,685.6 recorded a day earlier, with no purchasing coming about to provide upside momentum and the expiry passing without incident, the news source stated.

"They will expire without drama," Sean McGillivray, vice president and head of asset allocation at Great Pacific Wealth Management, told the news source. "$1,700's going to be a psychological resistance."

Gold mining stocks could benefit from a recent revelation in Alaska. A leading Japanese metal miner recently announced it discovered a gold deposit that holds roughly 40 metric tons of the precious metal. According to the International Business Times, 40 metric tons of gold equals roughly $2.27 billion. In addition to Alaska, fruitful gold mining operations have also been tapped in British Columbia and Mexico.

Copper starts week strong

Mon, 26 Mar 2012 15:46:16 GMT

Copper started the week of March 26 strong as the dollar weakened following remarks from Federal Reserve Chairman Ben Bernanke, according to a report from Reuters.

Copper led all increases in the 19-commodity Reuters/Jefferies CRB Index by increasing 2 percent, which constituted its largest rally in more than two weeks, the news source stated. The increase came after Bernanke reported the need for an accommodative monetary policy in order to reduce unemployment.

"The fact is you have relatively weak underlying physical growth and relatively weak GDP growth, but you have very accommodative policy and very low real interest rates ... so that supports all financial assets, commodities too," Nic Johnson, who helps manage about $30 billion in commodities at Pacific Investment Management in Newport Beach, California, told the news source.

In addition to copper mining stocks being affected by investor frustration over underperforming funds, gold mining stocks have struggled to deal with rising costs and operational issues in certain mining regions. But in Mexico, British Columbia and Alaska, mining operations have been relatively stable and incident-free as of late, making them attractive to investors.

Gold ends week flat

Fri, 23 Mar 2012 17:51:22 GMT

On the strength of a large single-day gain, gold is set to end the week flat as recent prices reflect the rise in U.S. interest rates and exchange-traded funds showed their largest one-day outflow in three months, according to a report from Reuters.

The precious metal was hovering around 1 percent up at $1,662.21 per ounce after recovering from a low of $1,627.68 on March 22, the news source stated.

Daniel Smith, Standard Chartered analyst, told the source that over the past few months, people have recognized the diminishing of tail risks around the outlook for the global economy.

"In terms of the U.S. macro story there's no doubt it's been outperforming people's expectations ... and in terms of Europe, Greece got its second bailout and bond yields in Germany have come in pretty sharply so those kind of things are certainly weighing on gold and have helped to bring prices down," he told the source.

Gold mining stocks are currently on a downward trajectory and have struck 52-week lows, wrote Neoclassical Economist, a contributor to Seeking Alpha. However, an upward price correction could occur, NE added, which could encourage investors to look into mining operations in fruitful areas like Alaska, Mexico and British Columbia.

Gold drops to new two-month low

Fri, 23 Mar 2012 12:14:45 GMT

Gold dropped on March 22 to its lowest level in more than two months in part due to worries stemming from contraction in the manufacturing industry in both China and the euro zone, according to a report from Reuters.

Bullion faced pressure as data indicated the manufacturing sector in China shrank in March for the fifth straight month, with the industrial sector in Europe contracting even further, the news source stated,. The bad news from China and Europe offset a four-year low in initial jobless claims in the United States.

"Gold's been 100 percent focused on the China slowdown," Jeffrey Sica, chief investment officer of SICA Wealth Management, which holds more than $1 billion in assets, told the news source.

Sica added he thinks the sell-off in gold is overdone and has been associated with the U.S. dollar strength and also uncertainty about whether there will be additional economic stimulus.

When it comes to gold mining stocks, Neoclassical Economist recently contributed a piece to Seeking Alpha, asserting that although these stocks are currently experiencing a downward trend, they could recover despite being relatively unpredictable. One way to mitigate this unpredictability is to invest in operations in resource-rich and politically stable areas, such as British Columbia and Alaska.

Price of copper down

Fri, 23 Mar 2012 12:14:39 GMT

The price of copper dropped to a two-week low on March 22 following shrinking factory activity in China and the euro zone worsening in terms of purchasing managers indexes, according to a report from Reuters.

These factors raised concerns about the outlook for demand, and the weak euro added pressure to prices furthering this concern. Benchmark copper was untraded in official rings and bid at $8,289 per ton compared to the March 21 close of $8,455 per ton on the London Metal Exchange, the news source stated.

"It indicates economic activity in China is slowing down, and this is nothing new," Peter Fertig, consultant at Quantitative Commodity Research, told the news source. "China also exports to the euro zone and it is falling victim to the crisis there. But the Chinese administration is doing all it can to foster domestic demand so even though we are currently going through a difficult period, looking forward I expect to see a rebound (in copper demand)."

Copper has followed the path of gold, which also dropped to a new low on March 22, its lowest level in more than two months. Gold mining stocks are also on a downward trend, hitting 52-week lows and continuing on an unpredictable streak, wrote Neoclassical Economist, a contributor to Seeking Alpha. Still, the Neoclassical Economist posited an upward price correction is likely, which might encourage investors to take action now and investigate mining operations in such resource-rich and politically stable areas as Alaska and the Pacific Northwest.

Gold futures recover

Thu, 22 Mar 2012 14:33:26 GMT

Gold futures rebounded March 21, adding $3.30, or 0.2 percent, to reach $1,650.30 per ounce on the Comex division of the New York Mercantile Exchange, according to a report from MarketWatch.

The slight advance by gold futures helped to regain some of the ground lost on the last day's sell-off, with bargain hunters buying to take advantage of lower prices, the news source states.

Buying in dollar-priced commodities can result from a weaker greenback, which encourages buying from holders of other currencies.

“Talk of central bank buying interest at these sorts of levels has also helped limit recent downside,” Michael Hewson, a senior market analyst at CMC Markets in London, told the news source.

Gold exploration is constantly affecting stock prices. A recent report from Forbes reveals the gold market has been in turmoil, experiencing highs in September last year and in February, with gold prices currently trending down. Downward trends in gold are nothing new, as in 2008 the metal dropped 34 percent over a seven-month span, the source states. However, the metal is resilient, making bullion attractive to investors, who also are drawn to mining operations in stable, resource-rich areas like British Columbia and Alaska.

Silver joins gold futures in rebound following Bernanke comments

Thu, 22 Mar 2012 14:33:18 GMT

Silver joined gold futures in surging on March 21, though both metals wavered in trading as Federal Reserve Chairman Ben Bernanke announced to Congress that the central bank would provide further easing if financial conditions led to it, according to a report from Fox Business.

Silver futures for April delivery ended up gaining 39 cents to close at $32.23, even as the dollar strengthened after Bernanke's statement.

“The Federal Reserve will continue to monitor the situation closely, work with our financial institutions and foreign counterparts to enhance the resilience of our financial system, and be ready to use our tools to help stabilize U.S. markets should the situation require such action,” Bernanke said.

On March 20, Bernanke criticized the gold standard in a lecture at George Washington University, saying it makes little sense to base a monetary system on a metal dug up largely in foreign countries, which then has to be transported to the United States. However, there are significant gold mining operations in resource-rich areas of North America, such as Alaska and British Columbia.

South African mining companies face class action lawsuit

Wed, 21 Mar 2012 14:21:42 GMT

Richard Spoor, a South African lawyer, recently announced he is preparing a class action lawsuit against top gold mining firms on behalf of former miners who allegedly have contracted silicosis after working in the nation's mines, according to a Reuters report.

Silicosis is a debilitating lung disease that was contracted by the miners due to negligent safety and health measures in the mines, the lawsuit alleges. Spoor previously led a lawsuit against a South African asbestos mining company that resulted in a $100 million settlement in 2003, the news source states.

"We're continuing with our work on these issues, irrespective of the class action," Frans Barker, COO at the Chamber of Mines, tells the news source in response to the class action filing. "We wouldn't like to respond to the class action itself because that depends very much on the merit of specific cases."

South Africa continues to experience turmoil in its gold exploration industry. On March 7, gold mining halted as tens of thousands of workers staged a national strike to demonstrate their political clout for the African National Congress. Meanwhile, mining operations have proven fruitful and less problematic in regions like Alaska, British Columbia and Mexico.

Copper futures decline over China concerns

Wed, 21 Mar 2012 13:45:03 GMT

Copper futures dropped the morning of March 20 in light of concern over higher energy prices that could dampen global economic growth, according to a report from the Wall Street Journal.

Renewed concerns surrounding China's economic slowdown were also significant factors for the drop in copper futures, as the most actively traded contract, for delivery in May, was down 2.2 percent, or 8.40 cents, for $3.8240 per pound as of Tuesday morning on the Comex division of the New York Mercantile Exchange, the news source stated.

Given that China is the world's largest consumer of copper and iron ore, investors are growing concerned about the tight credit policies employed in Beijing.

"That's not good for copper consumption either," Sterling Smith, an analyst with Country Hedging, told the news source. "We're probably overpriced compared to where demand should be and at this point I wouldn't be surprised if we came back to the $3.40 level."

Copper mining stocks could be affected by a continuing miner strike at Modikwa Platinum in Limpopo, South Africa. The mine specializes in copper mining in addition to platinum and gold, and the strike is leading to the government postponing the handing over of title deeds on the Tubatse mining land, according to Sapa. Investors looking at copper mining stocks might consider other resource-rich areas, such as northwestern Mexico, while the situation in South Africa continues to be unstable.

Gold stocks lagging in March

Tue, 20 Mar 2012 13:11:04 GMT

Despite marginal improvements on a day-by-day basis, gold prices have been lagging in March as the result of investor optimism improving on the U.S. economy, among other factors.

In addition to the U.S. economic recovery, a sharp rise in Treasury yields has also led to gold prices being relatively muted so far this month, and the drop in gold has led to some central banks buying as much as four tons of bullion, according to a report from the Financial Times.

In China, the nation's history of having a strong appetite for the metal has not been matched by the nation's gold output, as demand climbed close to 800 tons in 2011, meaning investors in gold mining stocks might be well-advised to consider more stable regions, such as British Columbia and Alaska.

In London, gold fell on March 20 as it was negatively affected by the strength in the dollar, which profited from the trending opinion that the U.S. economy is on pace to recovery, according to a report from The Economic Times.

Gold recovers to start week up

Tue, 20 Mar 2012 11:48:51 GMT

Gold ended March 19 on an upswing, losing its initial weakness as bargain hunters grew interested in the metal following sharp weekly losses while U.S. equities and other commodities posted gains, according to a report from MarketWatch.

Gold for April delivery added 0.7 percent or $11.50 to settle at $1,667.30 per ounce on the Comex division of the New York Mercantile Exchange, despite losing 3.3 percent the previous week as predominantly positive U.S. macroeconomic data reduced the metal's attractiveness as a safe investment.

“A lot of it has to do with bargain hunting,” Rohit Savant, an analyst with CPM Group in New York, told the news source. He added that lower prices following a weekly route was what brought investors back.

The confidence of builders also played a role in gold and silver opening the week higher, with recent reports indicating that U.S. homebuilder confidence for newly built, single-family homes started somewhat weaker than expected. Spot gold started the day up 0.17 percent, according to Kitco market data. Gold mining stocks are also affected by other factors, such as the stability of mining operations. Currently, gold mines in Canada and Mexico are in more favorable positions than those in Peru and South Africa, where labor disputes protests against government actions have proven disruptive.

Mine strike in Limpopo delaying title deeds

Tue, 20 Mar 2012 11:48:42 GMT

A continuing miner strike at Modikwa platinum in Limpopo, which specializes in copper mining in addition to platinum, gold and other metals, caused the government to suspend the handing over of title deeds on the Tubatse mining land, according to a report from Sapa.

The title deed transaction was originally scheduled to occur on March 14, as part of government efforts to compensate those whose land was taken away from them for mining purposes.

“The event has been suspended," said Motlatsi Lebea, rural development and land reform department spokesman for Limpopo. "We will be announcing a new date as soon as we get a go-ahead."

Lebea added the department was pleased with the deal and saw it as an opportunity for a coming together between the Tubatse community and the mine.

According to a March 19 report from Reuters, copper rose in moderate dealings as an expanding U.S. recovery was overshadowing China woes. Copper mining stocks could also be affected by the situation in Limpopo, which could motivate investors to consider mines in other resource rich countries, such as Mexico.

ETF demand lowers gold stock premium in Canada

Tue, 20 Mar 2012 11:31:34 GMT

The Standard and Poor's/TSX Composite Index shows that gold shares have dropped 27 percent from the historic high they reached in September 2011, according to a report from Bloomberg.

As a result, investors are abandoning gold producers in Canada in lieu of exchange-traded bullion funds and leaving valuations at a new low compared to the remaining market, the news source states.

Purchasing gold and ETFs tracking the price of bullion has become more popular for investors, with companies having a difficult time developing mines in remote locations in the face of higher operating costs.

"In the past, they had to buy the equities," said George Topping, a Toronto-based analyst at Stifel Nicolaus and Company. He added, "(Gold ETFs) remove all of the technical risks (in mining the metal)."

Gold exploration is taking place across the world, with mines operational in Mexico, Alaska and British Columbia. Gold started trading in the commodity markets in the early 1970s, and that is about the time the law allowed U.S. citizens to carry gold.

Protesting Peru miners linked to organized crime

Mon, 19 Mar 2012 15:42:26 GMT

The country of Peru has been experiencing turmoil in recent days related to gold exploration and illegal gold mining in the town of Puerto Maldonado, where the government says 97 percent of its miners are not registered and some are linked to organized crime, according to InSight Crime.

Puerto Maldonado is the capital of Madre de Dios, a region in the Amazon that borders Bolivia and Brazil and is considered one of the gold mining centers in the nation, but since the miner strike began on March 5, the region's production has ground to a halt and violence has eruped, with at least three reported dead in conflicts with the local government.

One of the leaders of the movement, Miguel Herrera, told The Associated Press that the government is looking at not legalizing small-scale mining, but destroying it instead.

"Mining gives work to lots of people," he told the news source. "Many families depend on mining and would be without sustenance without it."

A local government official told the AP that some mining leaders are misinforming the public that there is a desire to end mining activity in the region, but he insists this is not the case.

Gold mining activity is still fruitful in other parts of the world, as Mexico, Alaska and British Columbia are just three regions that have rich resources to tap.

Copper rises on outlook of tighter supply

Mon, 19 Mar 2012 15:39:57 GMT

Copper rose on March 15 amid signs of a tighter supply following warehouse stocks falling further and labor-related problems leading one of the globe's largest mining operations, in Indonesia, to lower its sales outlook for the first quarter, according to a Reuters report.

Copper climbed 1 percent given these conditions and rose $105 at the London Metal Exchange benchmark to close at $8,565 a ton, while in New York, the May COMEX contract climbed 4.95 cents to reach $3.8975 per pound, the news source stated. With copper up and operations shaky at the large Indonesian mine, investors might consider investing in copper mining operations in other regions, such as Sonora, Mexico.

Zhu Bin, an analyst at Nanhua Futures in the Chinese city of Hangzhou, added that demand for 2012 is not looking particularly good for copper. The nation consumes about 40 percent of the globe's copper, the news source stated.

Copper mining stocks were affected most recently by a meeting of the U.S. Federal Reserve, which found that although interest rates will likely stay low through 2014, the economy is slowly showing signs of improvement.

"The U.S. is no longer the center of gravity in the (copper) market, but if the U.S. is recovering it gives you an awful lot of positive investor sentiment," Nic Brown, an analyst at Natixis, told Reuters.

Peru mining protests leave three dead, 50 wounded

Fri, 16 Mar 2012 16:59:17 GMT

The protests related to gold exploration in Peru have left three dead, according to a report from Bloomberg Businessweek.

The nation's government had plans to regulate small-scale mining, which spurred recent protests. These have now led to three dead and 50 wounded as 5,000 illegal gold miners hurled stones at police, who responded by firing tear gas to clear roadblocks and reopen a highway to Brazil and Puerto Maldonado, the source stated.

“The state is not taking on subsistence mining, but rather large illicit organizations that finance illegal mining and cause irreparable damage to the environment and people’s health,” said the National Society of Mining, Petroleum and Energy President Pedro Martinez in an emailed statement. “The real promoters of illegal mining are well-organized mafia who exploit men, women and children in conditions of semi-slavery.”

In Chile, exploratory drilling at three new gold mines has led to promising results but still requires scientific work, according to United Press International. When it comes to gold exploration, Mexico, Alaska and British Columbia have proven to be successful in operations without the turmoil and protests experienced in nations like Peru and South Africa.

Gold ends down 3 percent for the week

Fri, 16 Mar 2012 16:59:07 GMT

Gold experienced little change on March 16 despite posting its second largest weekly decline in 2012 as the result of an early week drop. The drop followed new information from the U.S. Federal Reserve, according to a report from Reuters.

Reports surfaced revealing the Fed withheld further easing in light of a string of promising data concerning the economic conditions of the United States. As a result, gold fell 1 percent earlier in the March 16 session as India, a top consumer of the metal, announced it would double its import duties on bullion, the news source states.

Bullion is now trading significantly below its long-term technical support, and as a result gold could prolong losses in the short term before it recovers.

"Every retracement within this bull trend (since 2001) has managed to find a floor close to the 55-week average," Tom Fitzpatrick, analyst at CitiFX, the technical research unit of Citigroup, told the news source.

Gold mining stocks continue to fluctuate but the metal's popularity is rooted in history. The metal has been considered a valuable and sought-after precious commodity for numerous reasons, including its coinage and jewelry uses since before recorded history even began, reports James Schlifke, head trader at CDHopkins Metals Division.

Given the metal's historical worth, investors may be interested in gold mining operations as well as bullion. Mining companies in gold-rich regions such as British Columbia and Alaska are attractive in the current climate, with labor unrest affecting mining in Peru and South Africa.

Gold increases following consumer news

Thu, 15 Mar 2012 16:44:10 GMT

Gold increased slightly on March 15 after it dropped nearly 2 percent the previous day and was on pace for its worst weekly performance in three months, according to a report from Reuters.

Although increasing optimism about the U.S. economy bolstered the dollar and riskier assets, Investors have decided to stick with gold for the time being, which is pushing holdings of the precious metal in the world's largest exchange-traded products to new highs for the week, while it experiences a price drop in Asia, encouraging a strong surge in demand, the news source states.

"This has been another excuse for people who have been sitting on long positions from early January and even going back to early autumn, when there was speculation over when we would have QE and abundant liquidity," Andrey Kryuchenkov, an analyst at VTB Capital, told the news source of the Fed's program of qualitative easing. "But we will have negative real negative interest rates through 2014, the Fed reiterated that so essentially, I feel gold is well supported."

Gold mining stocks could be affected by unrest in many gold-rich countries. According to a recent report from the Wall Street Journal, the government of Peru is preparing for a down year in light of protests from communities close to proposed mining sites. The Peruvian government is forecasting only 7 percent growth this year for its mining operations, compared to 77 percent last year. The instability in Peru could bolster investment in gold mining operations in more stable areas, such as British Columbia and Alaska.

Peru joins South Africa in mining turmoil

Thu, 15 Mar 2012 16:44:01 GMT

The government of Peru is expecting reduced spending by mining firms for the rest of 2012 compared to last year, given recent protests. Local Andean communities have protested projects, compelling mining companies to put some plans on hold, according to a report from the Wall Street Journal.

But on the other side of the coin, Peru's government does expect mining growth to recover in 2013 and post strong numbers as authorities resolve issues leading to the current opposition, the newspaper reported.

Mining firms are expected to continue to grow this year in Peru, but at a much slower pace than last year, the news source stated. A report reviewed by Dow Jones Newswires and cited by the WSJ said the Peru government predicts mining investment will grow by 7 percent this year to $7.7 billion, compared to last year's growth of 77 percent, which brought the industry to $7.2 billion.

The government of Peru relies heavily on the production resulting from gold exploration and mining of valuable metals, as it accounts for 60 percent of exports and 30 percent of its tax revenue, the news source stated. Although Peru is the world's second-biggest producer of silver and copper and a major producer of lead, zinc, gold and other minerals, other mining regions like Mexico, British Columbia and Alaska have proven to be significant producers of valuable metals without the turmoil.

Peru isn't the only mineral and metal-rich region experiencing turmoil within its mining industry. According to a March 7 report from Reuters, tens of thousands of South Africans took part in a one-day national strike on that day, which resulted in a temporary halt in mining production as the largest labor group in Africa's largest economy reminded the ruling African National Congress of its political influence.

"Despite the political and social gains scored since 1994, the working class in this country continues to reel under the pressure of neo-liberalism and the legacy of apartheid and colonialism," the Congress of South African Trade Unions stated.

The move could force the government to reckon with the unions, which enjoy popular support as they played a crucial part in the grass-roots struggle against apartheid, according to the news source.

"Within the confines of ANC politics, there is clearly an attempt to spin the march as a challenge to Jacob Zuma's leadership and a criticism of his commitment to workers and the poor," Cape Town-based political economist Nic Borain told the news source.

Silver outperforming gold in 2012

Wed, 14 Mar 2012 14:51:27 GMT

A recent report from Five Star Equities, a market research company, reveals that although silver stock prices have been mainly flat over the last month, silver prices have surged as of late.

Although silver stocks have slowed along with China's retail sails, factory output and investment data, a recent report from The Silver Institute finds that investment demand has pushed the price of silver up 20 percent for the first 10 weeks of 2012, helping it outperform platinum, gold and palladium during that time.

"China continues to play a significant role in silver's demand outlook," states Five Star Equities. "China said its net imports of silver nearly quadrupled to more than 3,500 metric tons in 2010, boosted by sharp increases in demand by the industrial sector and the jewelry industry. Of concern, Chinese officials recently cut the country's 2012 target growth rate to 7.5 percent - the lowest year-on-year growth projection in eight years."

In another major Asian market, India, gold prices dropped at the domestic bullion market on March 13. In addition, silver dropped further in part due to lower industrial support and subdued speculative activity, according to The Times of India.

Silver mining stocks continue to fluctuate but these reports for the first several months of 2012 are positive indicators of the future. Investors looking to take advantage of the silver surge might invest in mining stocks, especially for operations in silver rich regions like Sonora, Mexico.

Gold falls but conditions remain favorable for investment

Wed, 14 Mar 2012 14:51:19 GMT

Gold fell to its lowest level since the middle of January on the morning of March 14, as the U.S. Federal Reserve reported a modest upgrade to the economic outlook and added momentum to the dollar while giving investors an excuse to lighten their bullion holdings, according to a report from Reuters.

The Fed did not provide any additional clues on the prospects of increased monetary easing after a March 13 meeting. However, it did offer a more optimistic economic outlook on the heels of a report that indicated retail sales posted their most significant gains in five months in February, the news source stated. Despite the fall in gold prices following the Fed's report, experts are still bullish on the metal.

"As far as real interest rates are concerned, we believe that they will remain low for some time to come," Walter de Wet of Standard Bank told the news source. "At the same time, economic conditions may indicate that the Fed funds rate is too low. Such a mismatch has in the past proved quite bullish for gold."

When it comes to gold exploration abroad, the government of Peru is bracing for a down year amid protests from local communities that want to shut down various mining projects. The Wall Street Journal reports the Peruvian government is only expecting 7 percent growth in its mining operations this year, compared to 77 percent growth last year, which could benefit mining operations in other parts of the world, such as British Columbia.

Copper up as Fed meeting approaches

Tue, 13 Mar 2012 16:43:32 GMT

Copper hit its highest level in a week following a U.S. Federal Reserve policy statement and strong economic data from the United States and Germany, according to a report from Reuters.

However, the gains made by copper were offset somewhat by uncertainty about demand in China, which is also a top consumer. On the London Metal Exchange, benchmark copper ended up 1.36 percent to trade at $8,560 per ton, compared to $8,445 per ton at the close on Monday, the news source states.

"The news about Europe has been priced in, the fact that the U.S. recovery is picking up steam has been priced in," Ed Meir, INTL FC Stone analyst, told the news source. "If China is slowing down, who is going to pick up the slack?"

Copper mining stocks investment and speculation on other metals were on hold with a U.S. Federal Reserve meeting planned for March 13. The Fed released a statement following the meeting, which touched on what insights were gained. Although interest rates will likely stay low until the end of 2014 and the economy is showing some slow improvement, especially in light of the recent Department of Labor report that had the nation adding 227,000 jobs in February. With the job rate up, those looking to get back into the markets might consider copper mining stocks, with investment especially promising for mining operations in northwestern Mexico and other resource-rich regions.

Gold trading eases in light of Fed meeting

Tue, 13 Mar 2012 16:32:45 GMT

Gold futures erased earlier gains late on March 13, as they dropped well below $1,700 per ounce in anticipation of the outcome of a meeting of policymakers at the Federal Reserve, according to a report from MarketWatch.

Gold for April delivery fell $5.60, or 0.3 percent on the Comex division of the New York Mercantile Exchange, as U.S. stocks opened higher with crude oil futures trading lower, the news source states.

The fate of gold could be determined in part by the outcome of a meeting that includes the Fed's Open Market Committee. The committee is scheduled to meet on March 13.

“If there are no announced changes to the Fed program, then the Fed statement is unlikely to have any obvious implications for the U.S. dollar,” James Steel, an analyst at HSBC, said in a research note. “This would also mean that the FOMC meeting is likely to have little effect on gold."

Before speculation regarding the Fed meeting, gold was trading steady in support of fresh buying in the Asian session, according to a report from the Wall Street Journal. Gold mining stocks continue to fluctuate but Mexico, Alaska and British Columbia remain hot spots for mining opportunities.

Mining conference brings global powers together

Tue, 13 Mar 2012 11:27:55 GMT

The premier mining conference in the world is drawing to a close but its economic impact is still being felt.

According to CBC News, the Prospectors and Developers Association of Canada's annual convention was a four-day event held at the Metro Toronto Convention Centre and was expected to generate tens of millions for the city's economy.

“We’re here to attract investors because we have a lot of minerals that still need to be extracted," Camara Lenab, with the Guinea Ministry of Mines, told the news source. “It helps support our economy so we can build schools, roads and hospitals.”

World leaders in gold exploration convened at the event, including representatives from India, Australia, China, Guinea and Brazil. Canada, with its rich mining territories in British Columbia and elsewhere, was natural as the host country - a role it has played since 1932. The overriding theme this year, as in past years, was the shortage of skilled workers, with hundreds of thousands of jobs needed to be filled over the next two decades, Ross Gallinger, executive director of the PDAC, told the news source.

A recent report from Zacks Investment Research reveals that since U.S. Federal Reserve Chairman Ben Bernanke's testimony in a recent Congressional hearing, gold has dropped from its three month high to just under $1,800 per ounce. Gold is a popular commodity among those who are looking to protect themselves against possible future economic trouble.

South African miners strike for one day

Tue, 13 Mar 2012 11:27:36 GMT

Gold mining halted in South Africa as tens of thousands of workers staged a one-day national strike on March 7, according to a report from Reuters.

Gold Fields, the fourth largest global gold provider, said its operations had halted as miners around the country stopped working to demonstrate their political clout to the African National Congress. As many as 85 percent of workers put down their tools in response to the call for a strike by the Congress of South African Trade Unions, the news source stated.

Gold exploration isn't the only African mining industry experiencing turmoil. In Zambia, copper mine workers recently ended a strike. About 2,000 workers at Canada's First Quantum Minerals Ltd flagship Zambian copper mine returned to work following appeals from the labor unions and the company itself, according to a separate Reuters report. First Quantum agreed to pony up a 15 percent pay raise with workers at the Kansanshi mine. Labor unrest in Africa could benefit mining operations in more stable regions, such as British Columbia and Alaska.

Economic woes in China affecting copper

Tue, 13 Mar 2012 10:23:05 GMT

Copper dropped for the first time in four days on March 12, in part due to pressure from an early rally in the U.S. dollar compared to the euro, and also due to worries that global growth may be slowing, according to a report from Reuters.

The forecast for slowing global growth could hurt demand for industrial metals moving forward as China, which accounts for 40 percent of the world's copper demand, posted its largest trade deficit in 10 years, the report states.

"This report, coupled with the other lower-than-expected economic reports from China in recent weeks is causing some concern about the health of the Chinese economy going forward, and more importantly, what the ramifications are for the global economy," Adam Sarhan, CEO of Sarhan Capital, tells the news source.

However, a recent report from MarketWatch reveals that despite the news from China, copper is still doing fairly well and could top $4 a pound soon. Although it is yet to be seen how copper mining stocks will be affected by the Chinese economy, May copper futures prices were down less than 2 percent a pound on the Comex division of the New York Mercantile Exchange. They dropped 1 percent recently but are now trading around 11 percent higher on a year-over-year basis. The uptick in copper prices is likely to be reflected in copper mining stocks, as well, especially for companies located in stable and resource-rich regions such as northwestern Mexico.

Bloomberg: Gold bulls improve with wagers reaching $131 billion

Mon, 12 Mar 2012 17:37:51 GMT

Gold demand has gotten stronger as wagers have reached $131 billion, according to a recent report from Bloomberg.

The news source surveyed 23 industry analysts and found 16 expecting gold prices to continue their gains in the second full week of March, and only one remaining neutral, marking the highest proportion in nearly four months.

“Record-high ETP holdings show both institutional demand and hedge-fund demand is robust,” Mark O’Byrne, the executive director of Dublin-based GoldCore Ltd., a brokerage, told the news source. “People are concerned about inflationary implications of quantitative easing, zero-percent interest rates policy and global currency debasement.”

Investors improved their holdings in exchange-traded products supported by bullion for seven straight weeks, the news source stated.

Gold mining stocks took a hit as the Market Vectors Gold Miners ETF dropped by more than 3 percent over the last month, with the Market Vectors Junior Gold Miners ETF dipping more than 6 percent over the same period, according to Five Star Equities. Still, with the gold market bullish, investment in mining operations could reasonably be expected to pick up, especially in stable mining regions such as British Columbia and Alaska.

Gold and silver mining projections

Mon, 12 Mar 2012 17:37:42 GMT

Mitchell Clark, contributor to financial newsletter, Profit Confidential, recently released a report that states the recent strength in the euro could lead to the spot prices of gold and silver improving and thus drive up shares of gold mining stocks.

Clark wrote in his recent article, "Why Oil Prices, Gold and Silver Are Looking Good Again," that the price action in mining stocks is related to underlying commodity prices, which have been on the rise as of late.

“I still believe in the commodity price cycle and that exposure to precious metals and other commodities should be a component of an investment portfolio this decade,” Clark said. “We have inflation, strength in emerging markets, strength in the industrial economies and huge increases in the M2 money supply. And of course the debasement of the U.S. dollar.”

He added that gold and silver stocks and oil prices should move in unison over the next several quarters, opposite to the American dollar. As gold mining stocks look increasingly attractive, investors might be drawn especially to operations in stable regions like British Columbia, due to continuing labor unrest affecting major African enterprises.

A recent report reveals that gold topped $1,700 an ounce on March 9 amid lingering concerns regarding Europe's financial problems, despite the strong participation in Greece's bond swap.

Forbes: Gold expected to pick up along with inflation

Mon, 12 Mar 2012 16:53:25 GMT

With the economy on the brink of inflation, the time to buy gold is near, according to a recent report from Forbes.

Hedge fund gurus Jeremy Grantham, of the $97 billion GMO, and John Paulson, of the $14 billion Paulson and Company, agree that as inflation picks up, the real price of gold will follow suit. They are following other analysts in recommending gold, the news source states.

“By the time inflation becomes evident, gold will probably have moved, which implies that now is the time to build a position," Paulson told the news source.

The report concluded that if strong inflation does occur then many will find it difficult to resist buying gold despite the fact it will have already moved.

According to a recent report from Bloomberg, gold demand has gotten stronger as wagers have hit the $131 billion mark. With the gold market bullish, gold mining stocks and investment in mining operations could pick up in certain mining regions that have displayed promise, including Alaska and British Columbia.

Gold drops back near $1,700

Mon, 12 Mar 2012 16:53:18 GMT

Gold has dropped back close to $1,700 amid a generally strong U.S. dollar, moving the price of the metal lower for the first time in four sessions on the morning of March 12, according to RTTNews.com.

For April delivery, gold lost $6.80 to $1,704.70 per ounce, making it the most actively traded contract after last week when it ended flat on global response from a positive U.S. jobs report that lifted equity and commodities markets, the news source states.

In addition, on the morning of March 12, the U.S. dollar moved back close to a monthly high compared to the euro and sterling, but still dropped lower against the yen and Swiss franc.

According to a recent report from Forbes, speculators have slashed gold and silver futures, but despite the speculative positions dropping significantly, prices still have not fallen much. In addition, gold mining stocks could benefit from the state of the metal. However, given continuing labor disputes in Africa, mining operations in other resource-rich areas like Mexico and Alaska may be more attractive to investors.

“That prices have been more resilient, falling only 7 percent despite a 23 percent decline in positioning, is encouraging, considering that the most recent selloff of similar magnitude – the 21 percent contraction in the Comex gold book back in September – resulted in a considerably larger 20 percent drop in the price of gold," Edel Tully, a strategist at UBS, told the news source. "Nevertheless, we maintain some degree of caution at this stage."

Gold rebounds following jobs report

Fri, 09 Mar 2012 18:42:19 GMT

Gold rebounded in light of positive employment data and gains in oil, according to a March 9 report from Reuters.

Gold turned higher in heavy trade on Friday, rebounding from significant losses early on as crude oil and U.S. equities benefited from a U.S. Department of Labor report that found the nation added 227,000 net jobs in February, marking the third straight month of employment gains of more than 200,000.

"Despite the severity of the early steep losses, we have already seen fairly decent buying coming in, and the firm oil prices were helping," James Steel, chief commodity analyst at HSBC, tells the news source. "Gold is showing a lot of resiliency and it may rebound as emerging-market demand is gradually reviving."

Spot gold increased 0.5 percent on Friday, to $1,708.29 an ounce by 11:34 a.m. EST, and is set to finish flat for the week as the gains experienced Friday erased losses accrued earlier, the news source states.

Gold mining stocks are widely considered a good investment prospect, and The Market Oracle recently pointed to operations with "excellent management teams in place," "good track records" and "interesting prospects in relatively safe mining jurisdictions." Among those jurisdictions, British Columbia and Alaska stand out as stable mining environments with significant resources.

Gold rises thanks to economic optimism

Fri, 09 Mar 2012 14:55:19 GMT

A March 8 report from Reuters reveals that gold rose nearly 1 percent that day, joining the euro and U.S. equities for a second day of increases.

The news comes following economic optimism as the result of an expected conclusion to Greece's bond deal that improved financial markets in all areas, the news source states.

"At some point, the (Greece) resolution is going to be much harder ... other than just pouring money into it," Dan Denbow, manager of the USAA Precious Metals and Minerals Fund, tells the news source. "Gold may not look like it's going anywhere, but anything else is devaluating against it."

Gold is set for its second straight weekly loss after dropping 2 percent on Tuesday as concerns over Greece's debt sent the metal under its 200-day moving average, the news source states.

It is yet to be seen how gold mining stocks will be affected by a one-day strike recently occurring in South Africa. Gold mining halted on March 7 as tens of thousands of workers staged a national strike to demonstrate their political clout to the African National Congress. The strike heavily impacted Gold Fields, the fourth largest global gold provider. The labor tensions in Africa could drive investors to mining operations in other gold-rich regions, such as Mexico.

Developer forced to forfeit gold mining claims

Thu, 08 Mar 2012 12:44:05 GMT

A Washington developer whose gold mining plans for a premier Oregon salmon river led to an outcry among environmentalists and a bill in Congress has had to forfeit his claims for non-payment.

According to The Associated Press, Dave Rutan and his business - Chetco River Mining and Explorations of La Center, Washington - failed to pay $1,540 in annual filing fees on the 11 claims made on the river, and the claims are now considered closed.

"I think this is an exceptional moment in time to protect this river and its fisheries against mining and the archaic 1872 Mining Act," Rogue Riverkeeper Lesley Adams told the news source. "I hope Congress sees the opportunity to protect the Chetco and save taxpayers' dollars at the same time by keeping the river closed to mineral entry without any interruption."

The U.S. Pacific Northwest and British Columbia are prime locations for gold mining, but as Rutan's case illustrates, investors would be wise to consider established concerns that have met regulatory standards.

Gold exploration could be impacted by a recent report from Mineweb revealing that oil prices are experiencing a resurgence and gold and silver are expected to follow suit. On March 5, gold fell below $1,700 in London, although it stayed above $1,700 in New York and Asia.

Gold climbs after three-straight sessions of losses

Wed, 07 Mar 2012 19:13:37 GMT

The price of gold gained in value on Wednesday, pushed by demand for the yellowish metal after sharp declines, Bloomberg reports.

One day after losing nearly 2 percent of its value and touching its lowest price in nearly six weeks, bullion was driving higher on Wednesday.

"Gold is likely to benefit from further investment dip buying interest," states a report penned by analyst James Moore with TheBullionDesk.com in London, according to Bloomberg.

At 9:24 a.m. on Wednesday, the price of gold climbed 0.34 percent, a $5.70 lift to $1,677.80 per troy ounce.

The rise of the physical metal may be mirrored by gold mining stocks, especially for companies who hold significant deposits of the respective commodity in resource-rich areas like British Columbia.

Thus far this year, the price of gold has climbed more than 7 percent, according to Bloomberg.

But one analyst noted questions are lingering regarding whether the precious metal will sink.

"With sentiment now on very shaky ground, it's hard to identify where a floor might arise," states a Wednesday report penned by analyst Edel Tully with UBS AG in London, Bloomberg notes. "Gold needs physical demand to step in, and in size, otherwise further downside seems inevitable."

Reuters reports the yellowish metal halted three consecutive days of losses, which was helped by gains for the shared currency of the European Union when held against the world's reserve currency.

"Open interest has fallen dramatically over the last week, indicating that many if not most of the longs that were initiated above $1,700 during the last month have been closed down," vice president Ole Hansen with Saxo Bank told Reuters. "This should help the market to stabilize."

All eyes are following the travails of Greece as the Aegean nation is attempting to stave off defaulting on its loan obligations. As the emblem of the sovereign debt crisis, Greece is tasked with effecting payments by the 20th of this month.

Reuters reports another deadline arrives on Thursday of this week - the nation must secure a pact with private creditors to begin pecking away at the large amount of debt it has compiled.

The record price of gold is $1,923.70 per troy ounce, which was established in early September of last year.

The sovereign debt crisis has proven to be a significant driver of the price of gold as the precious metal aims to achieve a twelfth consecutive year of annual gains this year.

Copper mine strike ends in Zambia

Tue, 06 Mar 2012 16:28:24 GMT

A Southern Africa copper mine is seeing roughly 2,000 workers return to work and search for the reddish metal after a strike over pay kicked off late last week, according to Reuters.

The four-day strike at First Quantum Minerals in Zambia prompted a 15 percent pay raise for the workers but one unknown is for how long the agreement will endure. The Kansanshi mine, owned by a Canadian firm and the largest of its type in the African nation, lost the company roughly $5 million per day during the strike and resulted in the government losing more than $1.5 million per day in tax money.

"We are appealing to all the workers to resume normal duties as we go for reconciliation with the management," president Mundia Sukufele with Allied Workers Union told Reuters.

Increased demand for the commodity could lead to a sharp rise in the value of copper mining stocks, especially for companies who hold significant deposits in resource-rich areas like northwestern Mexico.

Employees and union officials and leaders originally had sought raises of 17 percent when they quit working on Thursday of last week. Ownership said on Monday that termination proceedings were likely for employees who did not return to work.

Guy Scott, vice president of the African nation, became involved and his office worked to broker and mediate discussions as part of an effort to close the disagreement, resume negotiations and return the mining to proper operation.

The price of the reddish metal is sensitive to economic and financial developments throughout the world because of the commodity's variety of uses in construction, manufacturing and other industrial locales.

At 9:40 a.m. on Tuesday, the price of copper slipped 2.71 percent, a 10.45 cent drop to $3.755 per pound.

Poor global economic situations are one reason why the industrial metal is slumping, according to Bloomberg. The reddish metal is presently riding a three-day slide, a bearish trend that is largely uncommon this year.

"We will indeed be haunted again by some of the global macro problems," chief investment officer Arnout Van Rijn with Robeco Groep NV's Hong Kong division told Bloomberg. "You probably don't have a lot of upside anymore."

Another reason as to why the reddish metal is losing value is inventories are high.

The Shanghai Futures Exchange indicates supplies of copper have mounted to their higher level since January 2003, according to Bloomberg.

Analysts predict gold to push beyond $2k in Q4

Tue, 06 Mar 2012 12:19:58 GMT

The price of gold will surpass the threshold value of $2,000 per troy ounce during the final quarter of this year, according to analysts cited in Emirates247.com.

Analysts with Standard Chartered based the prediction on anticipations of additional monetary easing policies implemented by the U.S. Federal Reserve and the European Central Bank.

"We continue to believe gold should perform well if the Fed and the ECB print money again next year," according to the analysts. "Gold prices have moved up along with the Fed's balance sheet in recent quarters, and we would expect that to continue going forward. Just like it has in previous rounds of quantitative easing, a third round of asset purchases, this time focused potentially on mortgages, should provide a further lift to gold prices in 2012."

The rise of the physical metal may be mirrored by gold mining stocks, especially for companies who hold significant deposits of the respective commodity in resource-rich areas like Northwest Mexico.

The record price of gold is $1,923.70 per troy ounce as established in early September of last year. The yellowish metal achieved an 11th consecutive year of annual gains last year and this year is driving for a 12th consecutive year of gains.

Copper projected to rise next week

Fri, 02 Mar 2012 16:18:07 GMT

An uptick in manufacturing in the nations hosting the globe's two largest economic systems influence a fourth-straight week of bullishness for copper traders, according to Bloomberg.

Also prompting the belief in the reddish metal gaining value is reduced inventories in stockpiles, which are at their lowest level in at least 24 months. The majority of analysts who gave answers in a poll administered by the news service forecast the price of copper to climb next week as well. Of 29 analysts surveyed, 13 said the industrial metal will climb while six did not disclose an opinion on the matter.

The London Metal Exchange indicated its inventory plunged to 289,000 metric tons on Friday, representing the lowest level since August 2009. The LME also noted orders for additional copper have gained to their highest level in nearly eight years, which would further reduce supplies among the inventory.

"People feel that the U.S. is on a gradually improving trend and overall the tone is better," analyst Carole Ferguson with Fairfax IS in London told Bloomberg. "If you get a demand-led story in copper then it can rally again. It's supported by the long- term supply and demand picture."

At 8:04 a.m. on Friday, copper futures slipped 0.34 percent, a 1.35 cent loss to $3.918 per pound.

The increased Chinese demand for the commodity could lead to a sharp rise in the value of copper mining stocks, especially for companies who hold significant deposits in resource-rich areas like northwestern Mexico.

As the U.S. economy continues healing from the deep recession that began in 2008, leaders in the euro zone are exacting efforts to reign in the sovereign debt crisis and the damages it has inflicted on banks, markets and public finance systems. Manufacturing in China, host of the globe's second-largest economy that trails only that of the U.S. for size, expanded for a third consecutive month in February. China is the globe's largest consumer of copper, checking in at 40 percent. The U.S. accounts for 11 percent of global demand for copper.

The reddish metal is sensitive to worldwide financial and economic developments due to its myriad uses in industry, construction and manufacturing.

One strategist predicted next week's gains will come as enthusiasm for the European Central Bank's cheap loans program from this past week fades.

There's "less enthusiasm associated with the European longer-term refinancing operation," commodity strategy head Bart Melek with TD Securities in Toronto told the news source. "Copper should correct next week as prices are likely higher than the fundamentals imply."

The price of copper relaxed after increasing in value roughly 1 percent during the trading session on Thursday, according to Reuters.

The price of copper drove toward its highest value of the year and was less than $100 from the price of $8,765 per ton. The year's high was established early last month.

Thus far this year, the price of copper has climbed at least 13 percent but is yet to really pick up in China since the Lunar New Year in January, which has some investors, analyst and other observers concerned.

"If we were to get a few more numbers that were a bit disappointing the markets would start to become nervous about the growth outlook so price direction over the next couple of weeks is going to be very much influenced by the flow of economic news," analyst Gayle Berry with Barclays Capital told Reuters.

The Wall Street Journal reports economists are worried that the banking and property sectors of China are presenting risks to Asia.

But the nation also saw the Purchasing Managers Index, a metric that measures activity of manufacturing, increase from 50.5 in January to 51 last month.

Price of gold climbs amid anticipations of monetary easing

Fri, 24 Feb 2012 08:31:47 GMT

The price of gold gained to its top value in 90 days on Thursday as the shared currency of the European Union also pushed higher, according to The Economic Times.

The yellowish metal was driving toward its biggest weekly gain in 30 days as bullion followed the upward drive of the monetary unit's successes in the aftermath of Greece winning approval for its second bailout tranche since June 2010. The Aegean nation will avoid defaulting on financial obligations coming due next month with funds from the second bailout tranche.

"Generally speaking, the vibe in the gold market is certainly upbeat," strategist Nikos Kavalis with RBS told Reuters. "There hasn't been that much gold-specific newsflow ... (but) the fact that we have Iran in the background is certainly helping through higher oil prices, which are a negative for most other industrial commodities, but for gold, it's positive as it boosts inflation-heding and boosts its safe-haven attributes."

At 8:04 a.m. on Thursday, the price of gold increased 0.32 percent, a $5.60 lift to $1,776.90 per troy ounce.

The rise of the physical metal may be mirrored by gold mining stocks, especially for companies who hold significant deposits of the respective commodity in resource-rich areas like British Columbia.

Thus far this month, the price of gold has climbed about 2.2 percent under the value of the world's reserve currency. Yet the gains are at least 7 percent within the realm of the Japanese yen, which indicates the precipitous decline of the Pacific Rim nation's monetary unit. In the past two years, officials in Japan have intervened on four occasions to water down the strength of the monetary unit, with the most recent occurrence being last week.

Hopes for monetary easing in the euro zone are supporting the yellowish metal's upward drive, according to Reuters. Economic data disclosed in the embattled euro zone was unexpectedly tenuous.

Also spurring thought about monetary easing programs is weaker returns regarding the manufacturing industry and sector of China, the host of the globe's most rapidly developing economic system. China's economy, which last year passed by that of Japan, trails only that of the U.S. as far as size is concerned.

The Asian nation has seen the manufacturing sector shrink for a fourth consecutive month, which also prompts expectations for central banks to click into motion and advance programs that promote economic growth via monetary easing policies.

Monetary policy that is more relaxed typically drives the price of gold higher while the outlook for higher inflation also enhances the appeal of the precious metal, which serves as a safe haven investment and a hedge against inflation.

"There is always a case to be made for gold, as long as the central banks keep taking new easing measures or keep indicating they will take more new measures down the road," a Singapore-based trader told Reuters.

Dow Jones Newswires reports the precious metal's benefit from the bailout tranche secured by Greece lasted throughout the week.

And the goodwill for the precious metal is likely to drive higher with the prospect of the U.S. Federal Reserve taking action to step in and intervene with the value of the world's reserve currency. Though no time frame is set, anticipations for the watering down are within a few months, on which assorted fund managers already have begun acting, one trader in Japan told the news service.

"Some fund managers have been picking up gold recently because of additional hopes for more [monetary] easing in the U.S.," the trader told the news source.

The precious metal is driving toward a consecutive year of annual gains.

Gold will rise to $6.5k, silver to $80, CEO says

Wed, 22 Feb 2012 18:51:54 GMT

Governments will fall and civil demonstrations and protests will be widespread, and the price of gold will climb higher than $6,500 per troy ounce, according to Greg McCoach, an entrepreneur who has worked with the precious metal industry for the past seven years.

Mineweb reports McCoach, during an interview, especially pointed to the failure of financial systems as being what will drive gold prices higher. He also predicted large climbs for silver, stating the whitish metal can climb as high as $80 per troy ounce.

"What I am trying to say is that my $6,500/oz number is probably very conservative," McCoach told the publication. "How long is it going to take to get there? I don't have a crystal ball. Those prices would happen as the world financial system hits systemic collapse."

At 2:46 p.m. on Wednesday, the price of gold was up 1.18 percent, a $20.70 lift to $1,779.20 per troy ounce.

Though his predictions did not state a time frame, he did say both the yellowish metal and the whitish metal will exceed their record prices by the end of this year.

"I think in the immediate term it's very difficult to predict, but before year-end we're going to run to the next new highs in gold and silver. I would expect gold to be well above the $2,100/oz level in this next run with silver pushing toward $70/oz.

The record price for gold is $1,923.70 per troy ounce, which was established on September 6 of last year. The record price for silver is $50.35 per troy ounce, which was set in January 1980 when the Hunt brothers of Texas tried to corner the silver market.

The rise of the physical metal may be mirrored by gold mining stocks, especially for companies who hold significant deposits of the respective commodity in resource-rich areas like Alaska.

Quantitative easing, a government program where the U.S. Federal Reserve intervenes and purchases debt as a method of spurring economic activity, will be a significant driver for the metals' climbs in value, McCoach said.

At 2:55 p.m. on Wednesday, the price of silver slipped 0.17 percent, a 6 cent slip to $34.44 per troy ounce.

Silver mining stocks may reflect this increased price in the value of the physical metal, especially for companies who hold significant deposits of the commodity in resource-rich areas like Northwest Mexico.

Reuters reports the price of gold initially fell early on in Wednesday's trading session amid concerns for successes with the bailout in Greece.

Gold climbs amid Greek turmoil

Tue, 21 Feb 2012 18:07:27 GMT

The price of gold pushed to its top value in seven trading sessions on Tuesday after policymakers in the euro zone approved Greece's second bailout tranche since June 2010, according to The Economic Times.

The value of shared currency of the European Union climbed as the U.S. dollar dropped, which typically prompts the upward drive of the yellowish metal. The past 14 days have seen the price of the yellowish metal hover amid scrutiny of Greece and whether it would receive the bailout aid prior to next month, when financial obligations come due. Investors, analysts and additional observers kept a close eye on the Aegean nation and its ability to effect payments as deadlines set for next month are looming.

Analyst Hou Xinqiang with Jinrui Futures in the southern Chinese city of Shenzhen told The Economic Times that two prompts support the upward drive of the precious metal - the ongoing sovereign debt crisis tearing through the euro zone and worldwide nations' relaxed monetary policies. But he also noted the precious metal could use another motivator to push its value higher.

At 8:40 a.m. on Tuesday, the price of gold increased 1.24 percent, a $21.40 lift to $1,747.30 per troy ounce.

The rise of the physical metal may be mirrored by gold mining stocks, especially for companies who hold significant deposits of the respective commodity in resource-rich areas like British Columbia.

Finance ministers for euro zone nations on Tuesday put the final OK on the long-awaited tranche for Greece in order to prevent a default, which would have been next month. High-level negotiations saw private creditors agree to absorb deeper losses and the nation to administer deeper austerity cuts.

The international bailout tranche serves as a palliative as it will relieve Greece's immediate mandate to make payments but the Aegean nation will be forced to confront a dismal economic and financial outlook for years to come.

Reuters reports gold's climb on Tuesday marks the second consecutive day of gains for bullion.

"Gold is trading more like the other metals - as a risk asset, rather than a risk hedge," analyst David Wilson with Citigroup told Reuters. "You'd have thought that all the macro issues would be supportive for gold, when looking at U.S. and European debt and a slowing China, but it seems to be largely driven by the dollar/euro."

The correlation that the yellowish metal holds with the shared currency of the European Union presently stands at near 50 percent while roughly 14 days ago the correlations registered at about 30 percent, according to Reuters. That indicates gold now is more inclined to advance with the monetary unit rather than against it.

Dow Jones Newswires also reported the yellowish metal is in search of another prompt that will drive its price higher, noting commodities markets were not too impacted by the approval issued by the finance ministers of the euro zone for the tranche of international aid for Greece.

A note penned by officials with investment house Barclays Capital stated the near-term is likely to see profit taking, which will be absorbed by vital regions' physical demand for the yellowish metal.

"Gold is in search of its next catalyst," according to Barclays.

One of those prompts just might end up being the gradually escalating face-off between Iran and western nations that oppose the Middle Eastern country's nuclear program.

The oil-rich nation is under sanctions issued by the European Union and the U.S., which restricts and reduces the amount of crude oil the nation may ship.

The New York Times reports the tone of Iran is becoming increasingly aggressive as its national interests fall under peril.

Bullish views on copper

Mon, 20 Feb 2012 15:45:33 GMT

Investment funds are holding an optimistic view of the likelihood of copper climbing in value, an analyst told Bloomberg.

"The macro funds are going to continue to put money into metals, but at some point the fundamental reality bites," analyst David Wilson with Citigroup in London told the news service, citing a surprisingly weak demand during January from China, the globe's top consumer of the reddish metal. That was the first month in eight months that demand dropped to the nation hosting the world's most rapidly developing economy.

Also likely to benefit the price of the reddish metal is two of the world's three largest mining firms approved to expanding the Escondida copper mine in Chile, an expansion that is projected to cost $4.5 billion.

Chinese demand for the commodity could lead to a sharp rise in the value of copper mining stocks, especially for companies who hold significant deposits in resource-rich areas like northwestern Mexico.

Despite losses of 4 percent since touching its highest value in five months last week, copper remains up roughly 12 percent thus far this year, according to Reuters.

Firms predict gold to notch $2k this year

Thu, 16 Feb 2012 12:21:30 GMT

The price of gold will reach $2,030 per troy ounce during the final quarter of this year, according to BNP Paribas as cited by the International Business Times.

"After failing to sustain a breach of US$1,750/oz in February, gold has been hovering downwards, currently trading close to US$1,730/oz.," states a report penned by analyst Anne-Laure Tremblay with BNP Paribas. "Though in the short term, we could see further downside pressure, we remain convinced that the longer term trend for gold is positive given the metal’s strong fundamentals."

And the top official with AngloGold Ashanti said he will not be surprised when gold surpasses the $2,000 per troy ounce milestone price, according to Reuters. Mark Cutifani issued the prediction on Wednesday during a conference call with reporters regarding earnings from the fourth quarter of last year.

The rise of the physical metal may be mirrored by gold mining stocks, especially for companies who hold significant deposits of the respective commodity in resource-rich areas like British Columbia.

The record price for gold is $1,923.70 per troy ounce as established in early September.

Price of gold reverses three consecutive days of losses

Wed, 15 Feb 2012 17:23:51 GMT

The price of gold climbed on Wednesday amid scrutiny of debt-weakened Greece and the second bailout since June 2010 awaiting the Aegean nation, according to Dow Jones Newswires.

Finance ministers of nations in the euro zone are slated to conduct a teleconference today as Greece works toward preventing a default on loan obligations as a due date is set for slightly more than one month from now.

The meeting for the finance ministers originally was supposed to be one held vis-à-vis but on Tuesday they opted to conduct a teleconference on Wednesday, noting political leaders in Greece had not demonstrated they would implement fresh austerity measures approved this past weekend. The finance ministers are seeking to stamp approval on the bailout, which will come from the European Union and the International Monetary Fund.

"We are waiting for a positive outcome on Greece," a Hong Kong-based trader told Dow Jones Newswires, noting an air of optimism regarding discussions about the bailout proceeding and reaching consummation.

At 8:42 a.m. on Wednesday, the price of gold climbed 0.79 percent, a $13.50 lift to $1,731.20 per troy ounce.

The sovereign debt crisis has been raging for two-plus years as it attacks banks, markets and public finance systems. The price of gold has largely benefited from the scourge since the precious metal serves as an asset haven and a locale to store wealth.

The record price of gold is $1,923.70 per troy ounce, which was established in early September of last year.

Greece, having been approved for two bailouts, is the central figure of the euro debt scourge while Ireland and Portugal have accepted one bailout apiece. Bond yields in Italy and Spain have flirted closely with the same 7 percent figures that prompted Greece, Portugal and Ireland to seek bailouts.

One analyst said markets will remain on edge while Greece waits on disbursal of funds in the second bailout and teeters on the precipice of bankruptcy.

"If the situation in Europe blows up and they can't resolve things, then you're going to see everything retrace," senior analyst Helen Lau with UOB KayHian told Dow Jones Newswires, noting the price of the yellowish metal presently is essentially even and is in search of some sort of prompt that will influence it beyond its range.

The rise of the physical metal may be mirrored by gold mining stocks, especially for companies who hold significant deposits of the respective commodity in resource-rich areas like Northwest Mexico.

The upward drive of bullion on Wednesday establishes its largest increase in one day during the past week, according to Reuters.

The price of gold benefited from the governor of the central bank of China indicating the nation hosting the globe's second largest economic system is willing to be of assistance to the beleaguered euro zone and buy some of its debt. The U.S. hosts the world's largest economy yet China's economy is recognized as the globe's most rapidly developing.

"Markets are turning higher this afternoon probably on hopes of progress in Greece," physical dealer Ronald Leung with Lee Cheong Precious Metals in Hong Kong told Reuters, noting the status quo in Europe will continue influencing the price of gold.

An analyst based in Southern China told Reuters that no steep climbs are likely for gold in the short term but that's not the case in the long term.

"In the long run, the euro zone debt crisis is still supportive of gold," Hou Xinqiang with Jinrui Futures told the news source. "In the short term, gold is due to stay in consolidation mode, with the lower end of the range at $1,700 presenting a buying opportunity."

RTT News reports Wednesday's gains for the yellowish metal reversed three consecutive days of losses.

Gold benefits from euro's climb against the dollar

Tue, 14 Feb 2012 16:11:36 GMT

The price of gold increased in value on Monday amid the downward slide of the world's reserve currency, according to Bloomberg.

The U.S. dollar dropped in value as a result of the parliament of Greece approving the austerity plan proffered by Greek Prime Minister Lucas Papademos, which boosted the value of the shared currency of the European Union against the greenback. Gold and the U.S. dollar typically perform the inverse of one-another.

The vote in Greece is believed to be the final step needed for the European Union and the International Monetary Fund to disburse the equivalent of $173 billion in euros, which is a second tranche of international bailout aid for the Aegean Nation. The first tranche for Greece was remitted in June 2010.

"It's the weakness in the dollar," currency and metal trading head Bernard Sin with bullion refiner MKS Finance in Geneva told Bloomberg. "It creates a bit of demand for gold. On any dips, physical buying might come in and support the market."

At 9:18 a.m. on Monday, the price of gold edged down 0.02 percent, a 40 cent drop to $1,724.90 per troy ounce.

The rise of the physical metal may be mirrored by gold mining stocks, especially for companies who hold significant deposits of the respective commodity in resource-rich areas like Northwest Mexico.

The record price of the yellowish metal is $1,923.70 per troy ounce, which was established in early September of last year. Despite enduring a December that saw losses of roughly 10 percent, bullion still achieved an 11th consecutive year of gains.

Finance ministers with the euro zone nations are scheduled to convene Wednesday in Brussels as a follow-up to last Thursday's meeting, when they opted against disbursing the funding that Greece intends to use to prevent defaulting on loan obligations. Leaders mandated that Greece legislate the austerity cuts before they would agree to the release of the funding.

"Greece has passed the austerity measures, and investors are now willing to send capital flow back into the euro," analyst David Lennox with Fat Prophets in Sydney told the news service.

Reuters reports that the common currency of the European Union at one point during Monday's trading session pushed to 0.6 percent gains against the U.S. dollar as a result of Greek leaders voting for the austerity measures to which it will be subject.

But with additional steps needed, investors remained vigilant regarding the strength of the euro.

"While the Greek parliament has ratified the austerity measures, some uncertainty still remains, for instance regarding the demand for a clear commitment that all the members of the coalition government stick to the agreement," analyst Anne-Laure Tramblay with BNP Paribas told Reuters.

Greece has seen large amounts of resistance to the measures its parliament approved on Monday morning. The leader of the far-right party of the coalition government avowed that neither he nor his top aides would approve the austerity measures due to issues with pensions.

The austerity measures also prompted violent demonstrations to flare in the capital city.

The price of gold has largely benefited from questions about the denouement of the sovereign debt crisis, which has been raging for more than two years.

"The defensive nature of gold should continue to support investment demand as investors look for safe havens," states a Monday note authored by Morgan Stanley, according to Reuters. "A continued low or negative real interest rate environment will also provide support."

Early morning riots in Athens resulted in a bank, cafes and a movie theater catching fire, according to CNN, which noted that the demonstrations against the austerity cuts upgraded once parliament approved the measure.

Poll indicates copper prices to climb next week

Tue, 14 Feb 2012 13:21:42 GMT

Copper is likely to continue driving higher in value next week due to increasing confidence in global growth, according to the majority of analysts in a Bloomberg poll.

For the third-straight year, investment house Barclays is expecting a shortage of the reddish metal this year. The firm's opinions remain the same for next year as well.

"Copper is always a forward looking indicator of where the economy is going to be," analyst Dan Smith with Standard Chartered in London told the news source. "Things are improving in the financial markets, people are becoming more bullish."

The reddish metal tends to be sensitive to financial and economic developments due to its variety of uses in industrial, manufacturing and construction.

Reuters reports the price of copper was down on Friday amid news that imports of the reddish metal to China, the globe's top consumer of the industrial metal, fell 18.7 percent in January.

Goldmining CEO predicts bullion price to near $2k this year

Tue, 14 Feb 2012 13:21:35 GMT

The price of gold this year will closely approach the milestone value of $2,000 per troy ounce toward the end of this year, according to the top official of a gold mining company.

Moneyweb reports Steve Letwin of IAMGOLD said there are many challenges but upsides dwarf the downsides and now is an intriguing time to run a goldmining company.

"I think $1850'sh for 2012 - probably stabilizing in that range. Maybe getting towards $2000," Letwin told the publication. "So I'm bullish, certainly around that $1800 mark and there's a floor that's going to be more or less put in place here going forward that we can work off of."

The rise of the physical metal may be mirrored by gold mining stocks, especially for companies who hold significant deposits of the respective commodity in resource-rich areas like British Columbia.

With a record price of $1,923.70 per troy ounce established in early September 2011, the price of gold fell on Friday as a result of worries about Greece's inability to secure bailout funding, according to The Wall Street Journal.

Copper prices resume upward drive

Fri, 10 Feb 2012 14:58:37 GMT

The price of copper gained on Thursday , February 9 to its highest value in five months, propelled upward as the common currency of the European Union thrived on the success of Greece completing a pact with its international creditors earlier in the day, according to published reports.

The reddish metal, which is sensitive to economic and financial developments because of the variety of industrial, manufacturing and construction uses, also climbed after optimistic commentary came from European Central Bank president Mario Draghi on Thursday, Reuters reports.

Draghi's remarks came during the press conference that followed the monthly policy meeting conducted by the body he leads. He noted officials are advancing the cause of grabbing ahold of the sovereign debt crisis, which has been raging in the euro zone for more than two years as it victimizes banks, markets and public finance systems.

The pact that Greek officials and international creditors arrived at on Thursday was crafted to secure a second tranche of international aid for Greece, which totals the equivalent of $173 billion in euros. Greece has suffered mightily from the sovereign debt crisis as the bailout on which the Aegean nation is waiting represents the second one since June 2010.

Funds from the second bailout are likely to be used effect repayments from the first bailout, which was due by the middle of next month. Greece now is poised to avoid a default that threatened to chill international markets.

At 2:09 p.m. on Thursday, the price of copper gained 1.51 percent, a 5.9 cent increase to $3.9685 per pound.

Dow Jones Newswires reports copper prices climbed on Wednesday after the central bank of China indicated it stands behind the a plan for housing in China. That likely will increase demand due to copper's value in wiring and in plumbing.

But on Thursday morning copper traders briefly held off following news about inflation picking up last month so the rate did not hold as some market expectations had indicated.

"This news could put a damper on Chinese authorities' desire to ease monetary policy," states a note penned by traders with RBC Capital Markets. The prices "have obviously become unsettled by this as easing by China had been priced into the market during January."

Price of gold to average $1.8-$2k, large manufacturer says

Fri, 10 Feb 2012 14:00:31 GMT

Increased appetite in Asia will drive the price of gold to average from $1,800 per troy ounce to $2,000 per troy ounce this year, according to the globe's second biggest producer of the yellowish metal.

Dow Jones Newswires reports the investor relations head of Newmont said the demand for bullion from Asia will continue growing this year. John Seaberg was at a mining conference in South Africa when he issued the prediction.

"Investment demand has been strong, driven by investment demand in Asia," Seaberg told the news service. He also noted that banks in China have been purchasing gold while retail investors also have been buying the precious metal.

The rise of the physical metal may be mirrored by gold mining stocks, especially for companies who hold significant deposits of the respective commodity in resource-rich areas like Northwest Mexico.

The record price for gold is $1,923.70 per troy ounce as established on September 6 of last year. The sovereign debt crisis has done its part to boost the price of gold.

Reuters reports the price of gold benefited on Friday from inflation exceeding projections in China.

Copper prices drive higher with strong Chinese economic data

Thu, 09 Feb 2012 13:43:03 GMT

The price of copper increased on Wednesday, February 8 propelled upward in value by optimism for economic conditions improving in China, the globe's top consumer of the industrial metal, according to Dow Jones Newswires.

The reddish metal's climb was also impacted by the reduced pace of talks in Greece, which is attempting to secure a second tranche of international bailout aid stave off the possibility of defaulting on financial obligations. Despite the slow pace of discussions in Greece between the nation's officials and private creditors, the price of the reddish metal still gained in value as an air of confidence regarding Greece's ability to prevent a default was strong.

The reddish metal tends to be sensitive to financial and economic developments due to its myriad uses in industries such as construction and manufacturing.

To that end, investors holding out hope for development in China, host of the globe's most rapidly developing economy, is a significant part of the upward drive that copper has achieved this year. The country consumes roughly 40 percent of the globe's copper.

At 1:29 p.m. on Wednesday, the price of copper increased 0.55 percent, a 2.15 cent lift to $3.8975 per pound.

The reddish metal is "finding support from reduced fears that the real estate market in China will implode and drag the country's entire economy down with it," states a note authored by analysts with Commerzbank, according to Dow Jones Newswires. "China has sufficient fiscal and monetary policy capacity to prevent a significant cool down" regarding development and growth.

On Wednesday, the central bank of China indicated it will endorse the government's drive to construct affordable housing, which is likely to prompt an increased demand for copper given its uses in plumbing and with electrical wiring.

Bloomberg reports the industrial metal on Wednesday was barreling toward its top close since the middle of this past October. The publication attributed Wednesday's gains to the Chinese government's support for home buyers in China who were purchasing for the first time.

"Copper is particularly strong on news that China's central bank pledged yesterday to support the local housing market, underpinning a key demand source for the metal," states a report penned by analyst Edward Meir with INTL FCStone, according to Bloomberg.

He also predicted that because copper futures are performing so strongly thus far this year, the industrial metal could touch the threshold price of $9,000 per metric ton this month.

Reuters reports the ongoing discussions in Greece, though slow, also are proving to be beneficial for the industrial metal.

Confidence abounds about Greece's ability to pull through and finalize terms and conditions to acquire the equivalent of $172 billion in euros, which is the total of the second tranche of bailout aid for the Aegean nation since June 2010.

That confidence and optimism also translated to Wednesday's upward drive of the shared currency of the European Union, which achieved its top value in 60 days when held against the U.S. dollar.

"Base metals are very macro sensitive. The mood in the broader market has improved today and the market is grasping at any bit of positive news," analyst Andrey Kryuchenkov with VTB told Reuters. "At the moment base metals' correlation to equity markets is quite strong. And the dollar is near its December lows against a basket of currencies."

Thus far this year, the industrial metal has gained nearly 12 percent, according to Reuters.

Gold prices draw support from Greece, U.S. Federal Reserve

Wed, 08 Feb 2012 18:06:24 GMT

Wednesday saw the price of gold steady amid indications that Greece and its private creditors are nearing completion of a deal that will aid the Aegean nation's avoidance of a default next month, published reports indicate.

Bloomberg reports the precious metal's advances were the most in the past week of trading as the U.S. dollar slipped in value, dropping to its lowest rate against counterpart currencies in nearly two months. Losses to the world's reserve currency amounted to as much as 0.7 percent when compared to some of its rival monetary units.

Officials in Greece and the Aegean nation's private creditors were reportedly finalizing paperwork necessary for securing a second tranche of international aid, part of which will be used to meet financial obligations from the first tranche that was disbursed in June 2010. The sides are driving toward preventing the nation from defaulting on financial obligations that are coming due in mid-to-late March.

Losses to the U.S. dollar also helped drive the value of the precious metal higher on Wednesday, according to president Fain Shaffer of Infinity Trading in Southwest Oregon.

At 7:51 a.m. on Wednesday, the price of gold edged up 0.03 percent, a 50 cent increase to $1,748.90 per troy ounce.

The price of gold on Wednesday was nearing its top price since late November of last year, according to Reuters. The following month, the precious metal lost 10 percent of its value yet still managed to fulfill 11 consecutive years of annual gains.

Investors held out hope about Greece and its private international creditors finalizing all necessary terms and conditions in order to acquire that second tranche of aid as the nation continues struggling under the burden of the sovereign debt crisis that also has victimized Portugal and Ireland. Both of those nations also required one bailout apiece while Italy and Spain have worked to keep bond yields lower than the 7 percent figure that prompted those nations to seek international aid.

Reuters reports government bond yields in Germany, the host of the euro zone's largest and healthiest economic system, were feeling the pinch, which some view ominously. Germany and France, host of the region's second largest economy, typically assume a bully pulpit regarding regional topics economic and financial due their economic might.

The rise of the physical metal may be mirrored by gold mining stocks, especially for companies who hold significant deposits of the respective commodity in resource-rich areas like British Columbia.

Although a pact between opposing sides in Greece was reportedly within reach, investors, market observers and additional interested parties continue closely monitoring developments should discussions collapse, which would bring about a default that likely would prove to be detrimental to economic systems and markets the world over.

Yet the great unknown of the economic outlook in the euro zone due to the damaging capacities of the sovereign debt crisis is largely supportive of the price of gold, according to Reuters.

"It seems that gold has gone up as a commodity along with equities and other commodities, rather than anything else," precious metals head Simon Weeks with Scotiamocatta told the news service on Wednesday. "The same people who bought it after the Fed news seem to be the ones that bought it yesterday ... so I'm a little skeptical on the validity of this move."

Dow Jones Newswires reports U.S. Federal Reserve Chairman Ben Bernanke's testimony on Capitol Hill lent support to the precious metal. His remarks underscored sustained accommodative monetary policy when appearing before the Budget Committee of the U.S. Senate.

"Certainly Greece is a great focus for the market at the moment, but the main positive thing for gold has been these comments from Ben Bernanke where he reaffirmed his commitment to the low interest rate regime," senior analyst Pradeep Unni with Richcomm Global Services in Dubai told the news service.

Laborers kick off strike at gold mine in Kyrgyzstan

Wed, 08 Feb 2012 15:21:12 GMT

A gold mine in Kyrgyzstan saw roughly 1,400 employees kick off a labor strike on Tuesday, according to Reuters.

The Kumtor mine, which is owned by Centerra Gold, contributes almost 12 percent of the nation's gross domestic product. The country owns about one-third of the company, which says the union representing striking employees is demanding mandatory employee contribution to Kyrgystan's social fund.

"The strike will last as long as it takes for them to satisfy our demands," leader Eldar Tadzhibayev with the Mining and Metallurgical Trade Union of the Kyrgyz Republic. "The company will lose out on sizeable profits as they produce a lot of gold every day."

Workers kicked off their strike at 7 a.m. on Tuesday.

Last year the mine generated 583,156 troy ounces of gold in 2011. Projections by Centerra for this year put production at 575,000 troy ounces minimum and 625 ounces maximum.

The lower production at the Kyrgyzstan site may contribute to a rise in value for gold mining stocks for other companies, especially those that operate in resource-rich areas.

After two consecutive days of losses totaling 2 percent, the price of gold rebounded on Tuesday, according to The Street.

Central bank demand helps sustain high price of gold

Mon, 06 Feb 2012 16:24:12 GMT

The price of gold is remaining competitive due to the pursuit of the yellowish metal by central banks throughout the world, the top official of a company that deals with the precious metal told CNBC.

The stability of demand also is helping the price of bullion remain high, chief executive officer Mark Bristow with Rangold Resources told the news source.

"The supply side of the supply-demand equation is very tight," the chief executive officer told the news source. "There is a growing demand side from the increase in jewelry off-take in central Asia, but also the central banks starting to buy gold. These are the emerging markets central banks, not the G20 central banks."

The record price of gold is $1,923,70 per troy ounce, as established in early September of last year. Despite two consecutive sessions of corrections, projections for bullion to resume gaining in value are due to large amounts of uncertainty with the global financial and economic situation. The precious metal often serves as an asset haven during rocky financial and economic times.

The rise of the physical metal may be mirrored by gold mining stocks, especially for companies who hold significant deposits of the respective commodity in resource-rich areas like British Columbia.

Consumer demand in China and India, the globe's two top consumers of the precious metal, also are contributing to the yellowish metal's high value.

"People in China buy gold because it is gold; jewelry is the means (by which) they buy gold," the chief executive officer said. "There is great affinity for gold in China, and it's a demonstration of achievement and wealth. Gold has always been part of the country's persona."

Monday's losses are attributable to difficulties Greece is encountering in securing its second tranche of international bailout aid, according to The Economic Times.

All eyes are falling on the Aegean nation as it drives toward acquiring the bailout aid so that it does not default on its repayment obligations.

The European Commission was growing impatient with the Aegean nation, stating its leaders are needing to step forward and decide on austerity cuts that will secure the bailout aid. The sovereign debt crisis last year helped drive the precious metal to record highs.

But, nonetheless, the price of gold remains up roughly 10 percent thus far this year. If the gains continue for the yellowish metal, it will mark its 12th consecutive year of annual gains.

Bullion pushes higher in value

Fri, 03 Feb 2012 15:31:26 GMT

The price of gold edged up in value on Friday after having touched its top value since the middle of November, Reuters reports.

Investor demand for the yellowish metal rose amid anticipations about monetary policy of the U.S., host of the globe's largest economic system, remaining loose. That and the commitment of the U.S. Federal Reserve to keep interest rates low through late 2014, have helped drive the precious metal well more than 12 percent higher thus far this year.

"Yesterday's reaffirmation from the U.S. Fed (chairman) that he is committed to keep rates low ... (has) given gold the necessary boost to hold gains and also break key resistance," senior analyst Pradeep Unni with Richcomm Global Services told the news service.

At 7:32 a.m. on Friday, the price of gold gained 0.02 percent, a 30 cent lift to $1,759.60 per troy ounce.

The Economic Times reports the precious metal continued deriving an upward drive from strong worldwide manufacturing reports.

The rise of the physical metal may be mirrored by gold mining stocks, especially for companies who hold significant deposits of the respective commodity in resource-rich areas like Northwest Mexico.

Copper bulls watch industry with bright eyes

Thu, 02 Feb 2012 17:08:14 GMT

Wednesday saw the price of copper futures resume the strong performance from the month prior, fueling chatter about the likelihood of the industrial metal driving as high as $10,000 per metric ton, according to published reports.

The industrial metal's performance on the first day of February was strong as the value of the shared currency of the European Union pushed higher when held against the U.S. dollar, Reuters reports. The reddish metal gained 9.5 percent in value during the month of January.

Another driver of the reddish metal's upward tick on Wednesday is uplifting economic data regarding manufacturing in three key nations: the U.S., which is the host of the globe's largest economic system; China, owner of the globe's most rapidly developing economy; and Germany, the biggest economy in the euro zone.

The reddish metal tends to be sensitive to economic data given its uses in manufacturing and industry.

"While this year could see a pick-up in global production, copper mine supply remains vulnerable to disruptions," states a research note penned by Credit Suisse, according to Reuters.

At 4:41 p.m. on Wednesday, the price of copper climbed 1.17 percent, a 4.45 cent increase to $3.8345 per pound.

As the copper rally continues, the crescendo of chatter about the reddish metal notching the milestone price of $10,000 per metric ton grew louder, according to The Financial Times.

The financial turmoil of last year caused the price of copper to drop lower as the reddish metal touched its low point in October of $6,635 per metric ton. But since the beginning of 2012, the price of copper has gained in value 11 percent and presently is worth roughly $8,440 per metric ton.

Investors' demeanor toward the reddish metal have seen "a dramatic change from six weeks ago where everyone was so bearish," commodities research head Ric Deverell with Credit Suisse told The Financial Times. "The underlying [demand] was nowhere nearly as bad sentiment in the fourth quarter."

One copper mining executive told The Financial Times that purchasers of the precious metal in China have increased consumption for this year.

Bloomberg reports the January climb of copper represents the reddish metal's top gains since October.

Healthy performance for silver driven by investor, industrial demand

Thu, 02 Feb 2012 12:16:07 GMT

Investor and industrial demand is climbing for silver, which is achieving its best performance in the beginning of a calendar year in nearly three decades, according to Bloomberg.

Since touching its lowest price in the past 11 months during December, silver has increased 22 percent in value. But, prior to that, the precious metal lost 44 percent of its value during a period of eight months, which was partially attributable to Europe and China's slowed growth and expansion.

"Silver is a hybrid," commodity strategy head Bart Melek with TD Securities in Toronto told the news source. "It benefits from being precious. Later on in the year we’re going to see a bit of a recovery in industrial demand."

At 2:27 p.m. on Wednesday, silver futures gained 1.62 percent, a 53.8 cent lift to $33.80 per troy ounce.

Kitco News reports the value of silver increased 20 percent in January. Last year, the precious metal was within $1 of touching two milestones: the $50 per troy ounce psychological barrier and the record price of $50.35 per troy ounce.

The rise of the physical metal may be mirrored by silver mining stocks, especially for companies who hold significant deposits of the respective commodity in resource-rich areas like northwestern Mexico.

Gold prices continue upward drive

Wed, 01 Feb 2012 17:29:21 GMT

The price of gold gained for a second consecutive day on Wednesday, following the upward trajectory of the common currency of the European Union, according to Reuters.

Last month, when the price of bullion gained 11 percent in value, saw the yellowish metal's healthiest performance during the month of January since 1980. And on Wednesday, Dow Jones Newswires reports the precious metal touched its top value since early December 2011.

"Buyers have returned to the euro, which is helping the situation in gold. It had a bit of lackluster profit-taking yesterday but didn't break anything important on the downside, which helped confirm that being long is back in vogue," Ole Hansen, senior manager at Saxo Bank, said.

The rise of the physical metal may be mirrored by mining stocks, especially for companies who hold significant deposits of the respective commodity in resource-rich areas like northwestern Mexico.

At 10:31 a.m. on Wednesday, the price of gold increased 0.37 percent, a $6.40 gain to $1,746.80 per troy ounce.

Since scraping its lowest value in six months during the final days of 2011, gold prices have gained almost 15 percent in value, Reuters reports.

Strong weekly gains have gold bulls enthused

Tue, 31 Jan 2012 15:15:30 GMT

The price of gold was hurtling toward its best weekly drive since early last month, Reuters reports.

The brunt of bullion's climb this week is attributable to the policy making arm of the U.S. Federal Reserve stating it intends to preserve low interest rates through the end of 2014. That applies pressure to the U.S. dollar, which typically performs the inverse of gold.

"After the Fed chairman's vow to keep the rates low until late 2014, strong buying interest was visible," senior analyst Pradeep Unni with Richcomm Global Services told the news service. "Anxious investors have joined the fray of speculators who are now increasingly concerned by currency depreciation, as global central banks use easy monetary policies to flood markets with cash."

That the precious metal has gained in value for four consecutive weeks has traders of the precious metal enthused about its prospects, Bloomberg reports.

The rise of the physical metal may be mirrored by gold, especially for companies who hold significant deposits of the respective commodity in resource-rich areas like northwestern Mexico.

Gold rises amid weak dollar and reports of progress in Europe

Tue, 31 Jan 2012 13:01:17 GMT

The price of gold appreciated on January 31, as a weaker dollar and reports that progress is being made in Greek debt discussions pushed the value of the precious metal higher. This appreciation in the price of the commodity could put upward pressure on the prices of gold mining stocks.

Reuters reports that gold appreciated to as high as $1,747.39 before paring its gains to trade at $1,742.59 an ounce by 15:23 GMT. April futures trading on the Comex division of the New York Mercantile Exchange increased by $13.40 an ounce to reach $1,744.40. According to Kitco News, the price of spot gold was trading up $8.20 an ounce at $1,739.00.

"There's been a lot of money put to work here during January. Gold was at the beginning of the year one of the few commodities that everyone felt would be a good performer and people have been investing accordingly," Ole Hansen, senior manager at Saxo bank, told Reuters.

The value of gold mining stocks could potentially mirror the increase in the price of the physical metal and firms that extract the commodity in resource-rich areas like British Columbia might benefit from the appreciation.

Gold rises amid U.S. GDP report and Fed announcement

Mon, 30 Jan 2012 17:09:34 GMT

Gold prices appreciated on January 27, after the U.S. Commerce Department released its figures for fourth-quarter gross domestic product (GDP) and the Federal Reserve Bank announced its plans related to interest rates. This rise in the value of the metal could serve as a boon to gold mining stocks.

The price of gold bullion surpassed $1,730 for the first time in seven weeks, according to Reuters. February gold futures trading on the Comex division of the New York Mercantile Exchange were up $4.80 at $1,731.50 per ounce.

Spot gold was trading 0.3 percent higher at $1,724.70 an ounce at 10:23 GMT, The Economic Times reports. The contact was trading at $1,731.59 per ounce by 17:32 GMT, according to Reuters.

The U.S. Commerce Department reported that fourth-quarter GDP was 2.8 percent, which fell below the expectations of many market experts. The Federal Reserve made an announcement during the week that it does not plan to increase interest rates until at least 2014.

The value of gold mining stocks could potentially mirror the increase in the price of the physical metal and firms that extract the commodity in resource-rich areas like Alaska might benefit from the appreciation.

Fed statement pushes gold prices higher

Fri, 27 Jan 2012 13:55:11 GMT

The price of gold followed the upward trend of stock markets, commodities and the common currency of the European Union on Thursday, all driven by the U.S. Central Bank noting it plans to keep interest rates low and unchanged through the end of 2013, according to Reuters.

The policy making arm of the U.S. Federal Reserve issued the statement on Wednesday and it also suggested economic stimulus strategies are in the offing for the benefit of the globe's largest economic system, which is bouncing back from a deep recession and preventing a double-dip recession.

"Risk assets such as the euro and equities rallied along with gold," states a note penned by HSBC, cited by Reuters. "The addition of a new phrase in the statement in which the committee expects to maintain a highly accommodative monetary policy is a clear bias towards monetary easing. A highly accommodative monetary policy is bullish for gold."

At 7:56 a.m. on Thursday, the price of gold gained 0.86 percent, a $14.60 lift to $1,717.60 per troy ounce.

The rise of the physical metal may be mirrored by gold mining stocks, especially for companies who hold significant deposits of the respective commodity in resource-rich areas like northwestern Mexico.

Bullion's push through the milestone price of $1,700 per troy ounce on Wednesday marked the first venture among those prices since the middle of last month, according to Dow Jones Newswires.

Copper futures imbue confidence for price increases

Fri, 27 Jan 2012 13:52:32 GMT

The uptick in the amount of outstanding contracts while prices increased indicates traders' confidence about the value of copper futures gaining, Bloomberg reports.

For week ended January 11, copper futures at the London Metal Exchange advanced 1,065 lots to 452,586 contracts, the exchange indicates. One lot equals 25 metric tons of the industrial metal, which typically serves as a weathervane for global development in manufacturing.

That time period saw an increase of 3.2 percent for three-month delivery benchmark contracts.

The Macquarie Group indicated that since December 15 open interest in exchange copper is down 9.2 percent.

On Thursday, the reddish metal touched its top value in at least 60 days amid aspirations for demand to remain strong from China, the globe's top consumer of the industrial metal, The Wall Street Journal reports. Copper is sensitive to worldwide economic and financial developments due to the metal's uses in manufacturing and industry.

The value of copper mining stocks could mirror the rise in prices for the physical metal and firms that extract the commodity in resource-rich areas like Northwestern Mexico might benefit from this increase.

Gold prices sharp rise due to FOMC statement

Thu, 26 Jan 2012 17:16:58 GMT

The price of gold touched levels north of the $1,700 per troy ounce mark on Wednesday, propelled by remarks from the U.S. central bank noting interest rates are likely to remain low for this year, all of next year and most of 2014, according to Bloomberg.

The Federal Open Market Committee, the policy making arm of the U.S. Federal Reserve, issued a statement noting it intends to welcome monetary policy.

"The Committee expects to maintain a highly accommodative stance for monetary policy," indicates the Wednesday statement from the FOMC on Wednesday, according to Bloomberg. "Economic conditions - including low rates of resource utilization and a subdued outlook for inflation over the medium run - are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014."

At 2:32 p.m. on Wednesday, gold climbed 2.16 percent, a $35.90 lift to $1,700.40 per troy ounce.

The precious metal's reversal on Wednesday was striking. Shortly after 7:30 a.m., bullion had lost 0.62 percent, which pulled down the precious metal $10.30. Its price at that time was $1,654.20 per troy ounce.

One investment strategist pointed directly to the FOMC statement as to why gold reversed course.

"We saw an immediate reaction in gold," chief investment strategist Michael A. Gayed with Pension Partners in New York told the news service. "People are betting that at some point the economy will face inflationary pressures because of the low interest rate."

Gold mining stocks may mirror the price of the physical metal for companies that extract the resource in deposit-rich areas like British Columbia.

Dow Jones Newswires reports the precious metal pushed north of $1,700 per troy ounce for the first time since the middle of December. The publication also cited the policy statement of the FOMC.

"They confirmed what the markets were already thinking - that they wouldn't touch rates for a long time," broker and futures analyst Frank Lesh with FuturePath Trading told Dow Jones Newswires. "Now we've found out it's going to be a year longer than we thought."

The statement from the Fed elongated the period during which interest rates will remain low, which originally was slated for the middle of next year.
As a consequence, the price of gold barreled to its highest value since December 12.

The publication states the price of gold benefited since low interest rates even circumstances with Treasurys. Gold does not bear interest while the debt notes are slated to earn a minimal amount provided by the low interest rates.

Lesh said the announcement is likely to have an adverse impact on demand for the precious metal.

"There are those who were waiting without positions just to hear this," he told the publication. "It does give you confidence to buy more gold."

The value of the U.S. dollar dropped to the shared currency of the European Union after the FOMC statement, which also pushed up the value of the yellowish metal. The world's reserve currency and bullion typically travel the inverse of one-another.

Reuters reports the precious metal's immediate response was to gain in value as it trumped equities and industrial commodities in response to the policy making arm noting interest rates will remain low for the next 30-plus months.

"From an equity standpoint, it's not a good story as the Fed was anticipating a much slower rate of growth than the market was," head precious metals trader Frank McGhee with Integrated Brokerage Services told Reuters. "Gold was reacting to the Fed's guidance of historically low rates all the way until 2014, which suggests that there will be plenty of investment money around for an extended period of time."

Kazakhstan, Mongolia built gold reserves in December

Thu, 26 Jan 2012 12:34:05 GMT

The gold reserves of two Asian nations increased in December, according to information from an international regulator and cited by Bloomberg.

Holdings of the precious metal increased 3.1 metric tons to amount to 76.7 tons in Kazakhstan and Mongolia augmented its holdings by 1.2 tons of bullion, bringing its totals to 3.5 tons, according to data pulled from the International Monetary Fund.

"The trend of emerging countries' official sector gold buying will continue this year, which will be a price-supportive factor going forward," analyst Bayram Dincer with LGT Management in Switzerland told the news source. "The desire of central banks to diversify reserves with hard-currency gold is high and a long-term process."

The precious metal is roughly 13 percent and 5.2 percent of reserves in Kazakhstan and Mongolia, respectively, according to Bloomberg.

Reuters reports the price of gold dropped for a second consecutive day on Wednesday, pulled down by the emboldened dollar that gained in value as the 17-nation single currency suffered from strained negotiations between Greece and its private creditors.

Gold mining stocks may mirror the price of the physical metal for companies that extract the resource in deposit-rich areas like British Columbia.

Copper forecast for bullish outlook, financial house states

Wed, 25 Jan 2012 19:03:52 GMT

Copper and tin are the two base metals that are not projected for a bearish outlook, according to Sucden Financial, as cited by Platts.

The service released its Quarterly Metals Report on Wednesday and noted the industrial metal's value is projected to hover around even.

"Price buoyancy based on the near balance in supply/demand, together with susceptibility to production problems is expected to maintain prices around current levels. A range of $7,900-8,600/mt is likely, with an average price of $8,250/mt," the report stated of copper. "In more normal times, cuts to output would help to rebalance the market but stockpiles would have to be drawn down before a sustained price reaction. Still, cuts could lead to a quicker response in the age of financing deals. The exceptions are copper and tin where stockpiles are not high and decreasing, albeit due to an extent being driven more by production issues than by increasing consumption."

Reuters reports the weakening value of the common currency of the European Union pulled down the price of copper on Wednesday.

Globe's top copper consumer imports record amount in December

Wed, 25 Jan 2012 16:52:04 GMT

China, the globe's top consumer of copper, imported a record amount of the refined metal last month, according to Bloomberg.

But despite the 78 percent increase from December 2010 to 406,937 metric tons, the nation hosting the globe's most rapidly developing economic system still saw two consecutive years of declines of imports of refined copper. The General Administration of Customs noted the nation saw seven consecutive months of increases.

"There are wide expectations that the market will warm up after the Chinese New Year holiday, as spring is usually when demand picks up," analyst Wang Zhouyi with Shanghai CIFCO Futures told Bloomberg in an email note. "As prices continue to climb, we'll have to wait to see how downstream demand reacts."

After having touched its highest value in four months last Friday, the industrial metal is continuing to climb in value, according to MarketWatch.

The publication also notes sentiment about the industrial metal also is on the rise as technical indicators are improving while momentum is on the uptick. But the likelihood of a sustained rally for the reddish metal is unlikely.

CEO predicts silver price set to spike upward this year

Wed, 25 Jan 2012 13:06:23 GMT

The price of silver will increase five-fold by the end of this year, according to the top executive of a precious metal trading advisor cited by ETF Daily News.

Smith McKenna of Southeast Florida said the precious metal will be worth $150 per troy ounce by the end of the year. The middle of this year will see the precious metal worth $75 per troy ounce and the whitish metal will surpass the psychological threshold price of $50 per troy ounce by the end of the first quarter.

"All leading manufacturing data calls for an end to the global slowdown and a boom in capital investments throughout the word," chief executive officer Stephen Smith told the publication. "Global consumption will empty all above-ground supplies of silver within the next 36 to 48 months."

The all-time high price of silver is $50.35 per troy ounce, which was set in January 1980 when the Hunt brothers attempted to corner the market.

Billiton likely to expand Escondida

Tue, 24 Jan 2012 17:30:44 GMT

The globe's largest mining firm is set to grant approval for a $5 billion expansion of one of its sites in Chile at some time during this quarter, states a report penned by Deutsche Bank analysts and cited by Bloomberg.

Growth at the BHP Billiton-owned Escondida mine will result in increased production of copper, which will climb to 1.3 million metric tons per year, states the report. Growth at the mine, the globe's largest for the reddish metal, also will prompt construction of a third concentrator. BHP owns a stake in the mine worth 57.5 percent.

Spokesman Ruban Yogarajah with BHP stated in an email to Bloomberg that the prospect of acquiring a new concentrator is "currently the subject of a feasibility study."
At 2:46 p.m. on Tuesday, copper futures gained 0.36 percent, a 1.35 cent increase to $3.812 per pound.

The Associated Press reports the reddish metal gained 3 percent in value last week.

Due to its myriad industrial and manufacturing uses, the price of copper is sensitive to economic developments.

Whitish metal continues upward drive

Tue, 24 Jan 2012 15:13:51 GMT

Monday saw the price of silver resume climbing in value as the whitish metal notched its top price since early December 2011, according to Reuters.

During trading on Monday, silver touched $32.48 per troy ounce, which the precious metal has not seen since the first days of last month. Silver demand from the U.S. Mint is running strong as sales of American Eagle silver coins are on pace to drive beyond last January's high of 6.4 million ounces. Sales stood at 5.3 million ounces this past Friday, when the precious metal's value gained 3.8 percent.

The price of silver was benefiting from a weaker dollar on Monday, which attracted investors attention to the whitish metal, according to Dow Jones Newswires.

At 2:23 p.m. on Monday, silver futures increased 1.89 percent, a 60 cent lift to $32.275 per troy ounce.

Since the precious metal is valuable for manufacturing and other industry uses, the market price of silver is more sensitive to news and developments that are financial and economic in nature.

Gold climbs amid Japanese futures' lift

Tue, 24 Jan 2012 14:52:24 GMT

The price of gold pushed to its highest price in four-plus weeks on Monday, driven by the increasing value of futures in Japan, Reuters reports.

But gains achieved by the precious metal are likely to be minimized as the shared currency of the European Union dropping in value amid debt-hobbled Greece's inability to arrive at a deal with private creditors. Should the Aegean nation fail to arrive at a deal, it will continue driving toward default.

Given too many market-moving factors, investors will find it difficult to focus on one factor, keeping the global gold market in range," vice-president Akira Doi with commodity brokerage Daiichi Commodities in Tokyo told Reuters.

At 6:16 a.m. on Monday, gold prices increased 0.72 percent, an $11.90 lift to $1,675.90 per troy ounce.

Gold mining stocks may mirror the price of the physical metal for companies that extract the resource in deposit-rich areas like British Columbia.

Dow Jones Newswires reports the upward spike is due to speculative purchases of the yellowish metal trumping the strengthened U.S. dollar as well as China – one of the globe's two top consumers of bullion with the second being India – observing holidays for the Lunar New Year.

Silver prices climb to top price in six weeks

Mon, 23 Jan 2012 02:36:19 GMT

The price of silver futures were just shy of achieving 5 percent gains in value on Friday, propelled upward by questions regarding stability in Greece, a core of damaged nations harmed by the sovereign debt crisis, published reports state.

Investors and traders were shying away from the world's reserve currency, a partial cause of the whitish metal's upward drive in value, according to MarketWatch. The volatile metal rose to its highest price in the past six weeks of trading, The Wall Street Journal reports.

Because silver has a myriad of industrial uses, the whitish metal is significantly more sensitive to economic indicators than its counterpart precious metal gold. The Journal reports that about half of the demand for silver is for those industrial uses, due to its valuable attributes of conductivity and durability.

Those uses include electronics such as cellphones, computers, cars and solar devices.

At 3:31 p.m. on Friday, silver prices increased 4.66 percent, a $1.421 gain to $31.93 per troy ounce.

Uplifting economic news from the U.S. has been steady while China, the globe's most rapidly developing economic system that trails only the U.S. for size, is continuing its stance as the globe's top consumer of commodities. Those factors help trump skepticism that proved to be harmful to the whitish metal late last year.

"There is cautious optimism over industrial demand," precious metals analyst Jim Steel with HSBC told The Wall Street Journal. "And we have very strong coin demand, which tends to be a stronger influence on silver than the other precious metals markets."

Thus far this month the sale of silver coins by the U.S. Mint already is at a pace 50 percent higher than last year's monthly sales figures, which analysts recognize as strong demand for alternative assets.

Some investors also are likely to be capitalizing on reduced prices of the precious metal after its dive in value late last year.

The record price of silver futures is $50.35 per troy ounce, which was set in January 1980 when the Hunt brothers of Texas attempted to corner the silver market.

Early last year, the precious metal's price came within $1 of crashing through two significant milestones: the $50 per troy ounce psychological barrier and the record price from 32 years ago.
http://online.wsj.com/article/SB10001424052970204301404577173091455214750.html?mod=googlenews_wsj

Discussions collapse between Japan's second-biggest copper smelter and BHP Billiton

Thu, 19 Jan 2012 16:03:37 GMT

The second largest copper smelter in Japan has not finalized a contract to purchase copper ore from BHP Billiton this year, the company disclosed to Reuters earlier this week.

Talks between BHP Billiton and Sumitomo Metal Mining have collapsed. A spokesman with the company opted against commenting.

BHP Billiton typically sells more than 200,000 tons of copper per year to Japanese firms. BHP Billiton is the owner of the globe's biggest copper mine, which is Escondida in Chile.

The biggest smelter in Japan, Pan Pacific Copper, indicated on Tuesday its talks with BHP Billiton are ongoing regarding a contract for this year.

"Talks have been delayed, but we haven't left the table," a spokesman with Pan Pacific Copper told Reuters.

The third-biggest copper smelter in the Pacific Rim nation, Mitsubishi Materials, said talks with BHP Billiton are completed but the company did not disclose more about details germane to those discussions.

The value of copper mining stocks could be affected by the lower supplies from the company and firms that extract the commodity in resource-rich areas like Northwestern Mexico might benefit from this increase.

The Associated Press reports the price of copper was driving higher in value on Wednesday amid optimism regarding prospects for growth with the housing market in the U.S.

Copper futures gain for second-straight trading session

Wed, 18 Jan 2012 19:22:04 GMT

The price of copper futures gained in value on Wednesday, continuing an upward drive from Tuesday that was prompted by Chinese macroeconomic data that was more uplifting than anticipated, Dow Jones Newswires reports.

The uptick of the reddish metal, which is sensitive to economic and financial news and developments due to its myriad uses in manufacturing and other industries, was tempered as the impact of Tuesday's strong financial news dissipated while worries about the damaging tendencies of the sovereign debt crisis reared anew.

Further adding to the circumstances is the Chinese Lunar New Year, which begins January 22. China, host of the globe's second-largest economic system yet the world's most rapidly developing economy, is the globe's top consumer of the industrial metal.

"Chinese investors still hope Beijing may use some monetary easing measures in the near term to prop up the economy as it did slow last year," a Shanghai-based trader with an international firm told the news service.

An additional economic factor from China also could impact the price of copper.

A newspaper operated by the China's state-run news service indicated on Wednesday that experts said the nation is poised to reduce financial institutes' reserve requirements by 50 basis points by the end of this month. The newspaper, The Economic Information, is published under the auspices of the Xinhua News Agency.

One Shanghai analyst told Dow Jones News that the two upcoming trading sessions will see the reddish metal ebb and flow while investors remain hesitant about any big moves as the holiday approaches.

Bloomberg reports the industrial metal's climb on Wednesday also is attributable to uplifting economic data from the U.S.

Optimism about manufacturing and homebuilding enhanced prospects for demand of copper, which tends to push up the market price.

December saw factories generate more than any time during the past year. Business equipment, vehicles and materials for construction increased, according to data released by the U.S. Federal Reserve and cited by Bloomberg.

This month also is seeing confidence among homebuilders gain the most since 2008, according to a metric implemented by the National Association of Home Builder/Wells Fargo. Wednesday saw a 0.7 percent uptick for the Standard & Poor's 500 equity index, additional uplifting economic data that aids the reddish metal's climb in price.

"The U.S. economic data is supporting equities, and copper is moving with that," market strategist Adam Klopfenstein with Archer Financial Services in Chicago told Bloomberg. "Any time you see positive news out of the housing sector, that’s bullish for copper."

At 2:30 p.m. on Wednesday, copper futures increased 0.83 percent, a 3.1 cent lift to $3.7605 per pound.

The Business Recorder reports the Chinese data could prompt the nation to stimulate growth.

Inflation in the Asian nation fell to its lowest rate in 15 months this past December, which is another factor influencing the belief that China is set to implement a new monetary policy.

One metals broker figured in the ongoing debt crisis in the euro zone, particularly pointing at the trails and travails of Greece. The leader of the Aegean nation is conducting negotiations as to how to best position the nation amid its second tranche of bailout aid.

"The consensus is we'll probably see a soft landing in China (but) you've got to remain cautious because of what's happening in Europe," metals broker Jasper Crawley with Triland told the news service. "Greece is bankrupt (but) the market is brushing off bearish news."

Gold prices poised to climb amid weakening dollar

Wed, 18 Jan 2012 17:33:35 GMT

The downward drive of the U.S. dollar is likely to help push up the value of gold, Bloomberg reports.

Also pushing up the price of gold is the International Monetary Fund seeking to expand lending by $500 billion as a method of staving off damage caused by the euro zone debt crisis.

"Core investment drivers have not changed significantly but have merely been delayed by the sovereign debt crisis surrounding the euro," states a report penned by commodities research head Walter de Wet with Standard Bank in London, according to Bloomberg. "Global liquidity will continue to grow in the current economic environment, which would be supportive for gold."

At 8:03 a.m. on Wednesday, the price of gold slipped 0.11 percent, a $1.90 drop to $1,653.70 per troy ounce.

Wednesday saw the U.S. dollar fall in value against counterpart currencies, according to MoneyControl. China is believed to be preparing a program of monetary easing.

Gold mining stocks may mirror the price of the physical metal for companies that extract the resource in deposit-rich areas like British Columbia.

Gold, copper are metals to watch this year, investment houses predict

Tue, 17 Jan 2012 19:40:42 GMT

Metals, precious and otherwise, are set to have a stellar 2012, states the report of an investment powerhouse cited by Bloomberg.

Gold prices will drive to an average value of $1,845 per troy ounce this year, according to two Australia-based analysts with Morgan Stanley, though that price is roughly 16 percent lower than earlier forecasts.

Base metal copper will acquire an average price of $3.70 per pound this year, which expands to $8,157 per metric ton. That price is approximately 3 percent lower than an earlier prediction issued by the pair of analysts.

Morgan Stanley stated that worldwide industrial output is projected to develop 4.78 percent for this year, which is a reduction from last year's industrial output of 5.3 percent.

The investment house believes the manufacturing industry of Germany, France and Italy will contract as a consequence of damage inflicted by the sovereign debt crisis. In descending order, those three nations represent the euro zone's three largest economies.

"Commodity markets continue to confront the twin macro risks of a European recession and a hard landing in China in 2012," according to the analysts. "A continuing recovery in the value of the U.S. dollar is proving to be an additional headwind."

The driver for gold would likely be investment demand continuing to increase as well as acquisitions of the precious metal by central banks and producers of the yellowish metal hedging less. This year's forecast for bullion is an advancement of 17 percent from the average last year, which was $1,572.28 per troy ounce.

As gold drives toward a 12th consecutive year of annual gains this year, the price also is forecast to gain because of reductions in mine supply.

Gold mining stocks may mirror the price of the physical metal for companies that extract the resource in deposit-rich areas like British Columbia.

The analysts projected that China, as the world's top consumer of base metal copper, will help drive the reddish metal higher in value. This year projects to have a deficit of refined metal of 300,000 tons, which would represent the third consecutive year of shortfalls.

The economy of China, renowned as the globe's second largest - trailing only that of the U.S., developed 8.9 percent during the fourth quarter of last year as compared to the same period during the year prior.

Reuters reports the yellowish metal is projected to notch the milestone price of $2,000 per troy ounce later this year or early next year, according to GFMS, the consultancy with specialties in metals.

Though the past decade has seen the price of gold skyrocket at least 600 percent, the yellowish metal might be hurtling toward the end of the line of the bullish run.

In 2001, the precious metal was worth $250 per troy ounce while this past September, gold futures touched its all-time record-high price of $1,923.70 per troy ounce.

The consultancy projects the precious metal to drive higher than that record high during the fourth quarter of this year or within the first quarter of next year.

"A combination of factors will ensure that sufficient demand from investors and to a lesser extent official sector institutions comes into the market for it to clear at higher levels," GFMS stated in the revised update to its Gold Survey 2011. "Concern over nearly all currencies' long-term value remains acute, and this includes the U.S. dollar, which to a large extent has found favour simply as the 'least bad' option, especially in light of growing fears over the break-up of the euro zone."

Gold prices continue driving higher in value

Tue, 17 Jan 2012 18:27:41 GMT

Tuesday saw the price of gold continue its upward tack, following the shared currency of the European Union as the monetary unit gains strength, according to Retuers.

One driver of the euro and precious metal is strong economic data from Germany, host of the euro zone's largest economic power. Futures from the German Bund continued dropping amid speculation about a strengthening German economy while the sovereign debt scourge continues thrashing in the euro zone. On Tuesday, gold prices notched their top value since the middle of last month, when the precious metal lost 10 percent of its value. Thus far this year, gold futures' upward climb has been more than 6 percent.

At 7:58 a.m. on Tuesday, gold futures advanced 2.07 percent, a $33.80 increase to $1,664.60 per troy ounce.

Despite Tuesday's increases in value for the common currency of the European Union, the monetary unit is still down thus far this year.

Gold mining stocks may mirror the price of the physical metal for companies that extract the resource in deposit-rich areas like British Columbia.

China saw gross domestic product advanced 8.9 percent in the fourth quarter of last year as compared to the same period one year prior, which exceeded projections, MarketWatch reports.

Copper prices gain despite credit rating cuts

Mon, 16 Jan 2012 18:28:42 GMT

The price of copper gained on Monday despite continuing fallout from credit rating downgrades to nine euro zone nations, Reuters reports.

Fallout from the credit rating reductions already was priced in, which is why the reddish metal did not lose value as it typically is sensitive to economic data due to its uses for manufacturing and other industries.

"In the commodity sector the S&P downgrades were already priced in; it wasn't a big surprise," analyst Tobias Merath with Credit Suisse told Reuters. "Copper is above $8,000 again and that's a very positive sign. Inventories are down and that's an indication that demand is robust and has even strengthened a bit. Also, cancelled warrants are up so we expect more inventories drawdowns."

At 1:14 p.m. on Monday, copper futures advanced 1.07 percent, a 3.9 cent lift to $3.676 per pound.

Bloomberg reports Goldman Sachs penned a report last week stating the reddish metal, oil and gold are likely to spearhead a 15 percent upward drive for raw materials during 2011.

Sales of silver strong thus far this month, Mint reports

Fri, 13 Jan 2012 20:01:00 GMT

Strong sales of American Eagle silver coins in the U.S. thus far this month might indicate the volatile metal's swooning is coming to a close, Bloomberg reports.

For the one-week period from January 3 through 10, the U.S. Mint sold 4.26 million ounces of the silver coin to authorized purchasers. Should this pace resume through the remainder of the month, January will see the sale of 14.2 million ounces, a figure that at least doubles totals from last January, which was 6.422 million ounces.

"When people see dips now in silver they are going to get in," president Terry Hanlon with Dillon Gage Metals told Bloomberg. "There are more fund managers who are pulling out of the exchange-traded funds and buying physical metals, which is a new trend. They want a product that they can liquidate quickly and in increments they want. People do feel comfortable being in control over storing the product."

At 3:14 p.m. on Thursday, silver futures climbed 0.35 percent, a 10.5 cent gain to $29.995 per troy ounce.

Beacon Equity reports the price of silver benefited from the rise in value of the shared currency of the European Union, which climbed as a consequence of Spain conducting a successful sale of debt.

Gold prices gain amid euro's uptick

Thu, 12 Jan 2012 16:26:08 GMT

A healthy bond auction in Spain on January 12 helped drive gold prices higher as the common currency of the European Union gained value while the U.S. dollar dropped, according to Reuters.

Gold mining stocks may mirror the price of the physical metal for companies that extract the resource in deposit-rich areas like British Columbia.

But the yellowish metal's advances were capped by questions surrounding the European Central Bank, which is scheduled to convene a press conference later in the day on January 12. Strong demand from India and China, the globe's biggest consumers of bullion, continued and helped reassure investors after the precious metal lost 10 percent of its value last month.

"We may see a slightly more dovish statement regarding long-term operation rates and bond buying, new liquidity measures," analyst Bayram Dincer with LGT Capital Management told Reuters, noting that would propel the price of gold higher.

At 8:21 a.m. on January 12, gold prices climbed 0.94 percent, a $15.40 lift to $1,655 per troy ounce.

Bloomberg reports the ECB kept interest rates as is after slashing them two straight times amid indications the sovereign debt crisis might be slowing, which provided the body an opportunity to reflect. The interest rate will remain at a record low of 1 percent.

Gold futures advance for second consecutive session

Wed, 11 Jan 2012 17:57:48 GMT

Gold futures drove higher in value on Wednesday for a second consecutive trading session as the yellowish metal notched its top price in the past month, Reuters reports.

At one point, the precious metal gained 0.4 percent to touch $1,639.10 per troy ounce. Thus far this year, the price of bullion has gained roughly 5 percent, returns that come on the heels of a December the precious metal would rather forget.

"If we manage to close above that level today, it should be quite bullish," technical analyst Axel Rudolph with Commerzbank told Reuters, pointing to the price of $1,635. "The move we have seen at the beginning of this year has been quite impulsive - it went up very quickly, stopped for a couple of days, then proceeded to go up. This is bullish momentum showing itself on the gold chart."

At 10:12 a.m. on Wednesday, gold futures increased 0.35 percent, a $5.70 increase to $1,637.20 per troy ounce.

Bloomberg reports gold demand from Hong Kong by China, which is preparing to celebrate the Lunar New Year later this month, climbed to record values.

Copper futures climb amid Chinese imports reaching highs

Tue, 10 Jan 2012 17:24:51 GMT

Tuesday saw copper futures drive higher in value as the industrial metal followed the uptick of global equities markets, Dow Jones Newswires reports.

Also driving up the price of the reddish metal was news about imports on the rise to China, the globe's top consumer of copper. China also hosts the globe's second-largest economy, trailing only that of the U.S. China's economic system is the world's most rapidly developing.

Global stocks also were climbing in value on Tuesday, propelled by the corporate earnings season in the U.S. would be better than projections indicate. The outlook of investors also benefited from remarks by a spokeswoman with Fitch Ratings stating that the credit rating of France, host of the euro zone's second largest economic system, is unlikely to suffer a downgrade as warned late last year.

The reddish metal is particularly sensitive to economic developments, setbacks and outlooks due to its value for use in construction and manufacturing. The market price of the metal typically follows the path of global equities amid expectations for growth.

The value of copper mining stocks for companies who extract the metal in resource rich areas like Northwestern Mexico may increase because of these developments.

December saw China import a record amount of the reddish metal, amounting to 508,942 metric tons. That total is 13 percent more than the month prior and 48 percent more than the amount of copper that was imported in December of the year prior, according to data provided by the General Administration of Customs.

One primary reason why imports advanced so significantly is the price of the reddish metal dropped during the late summer.

"This is a very high figure for 2011, given that it was a year characterized by great uncertainty and turbulence," states a note penned by Commerzbank analysts.

The Economic Times reports market analysts correlated the uptick in price of copper to the shared commitment of German Chancellor Angela Merkel and French President Nicolas Sarkozy to hastening the pace of how they answer damaging tendencies of the sovereign debt crisis that is ravaging markets, banks and public finance systems.

The London Metal Exchange also saw metal prices increase, The Economic Times reports.

"It remains to be seen whether the bounce we are currently seeing in metals will have some legs to it," states a note penned by analyst Edward Meir with INTL FCStone, according to Dow Jones Newswires. "Euro-related bond fears are not far underneath the surface and still have the capability of snuffing out this rally."

Silver tracks gold higher amid Iran situation

Mon, 09 Jan 2012 19:11:23 GMT

Silver prices tracked gold higher on January 5 as the sentiment of traders was affected by conflict in Iran involving the Strait of Hormuz. Rising prices for the physical metal might cause silver mining stocks to appreciate.

Bloomberg reports that March silver futures increased 0.6 percent to reach $29.275 an ounce on the Comex division of the New York Mercantile Exchange. Spot silver was trading 1.4 percent higher at $29.58 an ounce, according to Bloomberg.

Britain’s Defense Secretary Philip Hammond stated in a speech to the Atlantic Council in Washington that any efforts by Iran to block off the straight will be "illegal" and will provoke military action by the Royal Navy, Bloomberg reports.

"Iran is gradually becoming a big source of concern and people are worried what could happen next," Michael Smith, president of T&K Futures and Options in Port St. Lucie, Florida, told the media outlet. "Gold is gaining on the fear."

The value of silver mining stocks could potentially mirror the increase in the price of the physical metal and firms that extract the commodity in resource-rich areas like Northwestern Mexico might benefit from the appreciation.

Gold creeps as market watches Europe

Mon, 09 Jan 2012 14:53:32 GMT

Various measures of the price of gold rose in early trading on January 9 as investors worldwide watched the European debt situation. This upward movement in the price of the precious metal could serve as a boon to the value of gold mining stocks.

Gold futures scheduled for February delivery were trading $4.90 higher at $1,621.70 an ounce on the Comex division of the New York Mercantile Exchange, according to TheStreet. Data provided by Kitco's gold index reveals that spot gold was trading $3 higher.

Gold prices were fluctuating within a certain range as prices were contained by a stronger greenback, the media outlet reports. Data provided by a report covering options indicates that while investors took 2,000 long positions, this market presence was practically canceled out by the 1,700 short positions taken by investors.

"With the exception of one week in mid-October 2011 ... net long positions in the gold market are down to their lowest levels since May 2009," James Steel, an analyst at HSBC Securities, told the media outlet. "We believe long positions are likely to rebuild as investors recognize they are historically low and the market is ... above its recent low of $1,521 set in December 2011."

German Chancellor Angela Merkel and French President Nicolas Sarkozy planned to meet on January 9 to discuss fiscal strategies that could benefit the 17-nation euro zone, Reuters reports. The two officials will collaborate on ways to increase economic growth in the region. Saxo Bank senior analyst Ole Hansen speculated that the gold markets could be influenced by the potential outcome of this meeting as well as other variables.

"It’s hard to point to any negative factors for gold," Hansen told the media outlet.

He added that in reference to the Merkel-Sarkozy meeting that "Quite often ahead of these meetings, markets tend to be a bit hesitant of getting too carried away (in case) new initiatives are announced. On that basis, we see the potential for a bit more of a pullback on the dollar. That should be supportive (for gold)." (possibly remove first part of paragraph?)

Gold rose 3.2 percent for week ending Jan 6

Mon, 09 Jan 2012 12:46:11 GMT

The price of gold futures appreciated 3.2 percent during the week that ended January 6. Appreciating values for these contracts on the precious metal could serve to push gold mining stocks higher.

During the first week of 2012 trading, investor bargain buying caused gold futures to gain 3.2 percent, according to The Wall Street Journal. Forbes reports that February gold futures trading on the Comex division of the New York Mercantile Exchange were up $2.70 at $1,622.80 an ounce in early trading on January 6. At the time, spot gold was trading up $0.50 per ounce at $1,622.50. The contract later settled at $1,616.80 a troy ounce, The Wall Street Journal reports.

Futures for the precious metal hit a three-week high on January 5 as a result of these bargains, the media outlet reports. Investors seeking the metal as a safe haven from the impact of political volatility in Iran also contributed to gold's price. The following day, contracts for the precious metal were buoyed in early trading by a jobs report that beat the predictions of market experts. Futures for gold then retreated as the ICE US Dollar Index appreciated past a one-year high. Forbes reports that the U.S. dollar index was also down in early morning trading.

"There are a couple of forces that are working against each other in gold," said Fain Shaffer, president of Infinity Trading in Medford, Ore., told The Wall Street Journal. "The crisis in Europe is deepening," a development that would normally support demand for gold as a safe-harbor, he said, "but that's also been causing the dollar to rally."

However, the price of the precious metal did not rise past the 200-day moving average, which is an important metric for traders who make bets on where the market is going, according to the media outlet.

The moving average is "a pivotal challenge and until this is overcome, cautiously optimistic rather than outright bullish sentiment will dominate," UBS analyst Edel Tully wrote in a note, the media outlet reports.

Indonesian mine strike could threaten global copper production

Fri, 06 Jan 2012 18:40:01 GMT

The world's second-largest copper mine could post dismal fourth-quarter numbers, as production at the site has been severely limited by the strikes that have suspended operations, according to Reuters.

Freeport-McMoRan Copper and Gold Inc. announced that production and processing rates at its strike-hit Grasberg mine in Indonesia have fallen by a significant margin. The drop could mean that the company could not hit levels that are needed to make fourth-quarter sales targets, the news source reported.

This development could lead to a rise in copper mining stocks for other companies, as these businesses may benefit from the lack of production, especially if they hold significant deposits in areas like Northwestern Mexico.

"Freeport is clearly signaling further downside to fourth-quarter production," Tony Robson, an analyst with BMO Capital Markets, told Reuters. The expert also predicted that the total drop in output for the mine could be 32 percent lower than the estimates for the fiscal period.

The Associated Press reported that the earlier sales forecast for the company had assumed production levels would be at 75 percent of the normal outflow, or roughly 175,000 tons a day. However, the total numbers have dropped to 120,000 tons a day, with little potential for a reversal in the near future.

Reuters reported that the site is operating at much lower levels due to the sabotage that had occurred, as the reduced output for the site has to do with a damaged pipeline. Attacks on the mining equipment and staff, along with blockades to food and supplies have left the company without sufficient materials to operate.

"Freeport has initiated repairs to the damaged pipelines but has not been able to gain full access to the affected areas of the pipelines because of the road blockades by striking workers," the mine spokesman said in a conference.

At a news conference, the Freeport company showed reporters pictures of unidentified individuals cutting pipelines for both concentrate and fuel. The sabotage efforts have succeeded in affecting the production levels and the infrastructure that is the means of transport for the miners, Reuters reported.

According to the news source, the central and local governments have failed in their initial efforts to mediate talks between the miners and the worker's union.

Gold tracks oil higher amid Iranian threat

Fri, 06 Jan 2012 12:11:22 GMT

Various measures of the price of gold rose on January 5, following the price of oil. The value of the precious metal was bolstered by a threat of potential military action against Iran by Britain, Bloomberg reports. Gold mining stocks could potentially be buoyed by the rising price of the physical metal.

The price of cash gold increased by as much as 0.8 percent to reach $1,623.97 an ounce by 3:10 p.m. in Singapore, according to Bloomberg. The contract appreciated 4.9 percent during the four previous trading sessions. February Comex futures rose by as much as 0.8 percent to reach $1,625 per ounce.

February crude futures were trading 6 cents higher at $103.28 on the New York Mercantile Exchange at 4:13 p.m. in Singapore, the media outlet reports. Oil prices increased 8.2 percent in 2011. Brent oil scheduled for February delivery rose 0.4 percent to reach $114.18 on the London-based ICE Futures Europe exchange.

In a speech to the Atlantic Council in Washington, Britain’s Defense Secretary Philip Hammond stated that an Iranian blockade of the Strait of Hormuz could force his country to provide a military response, according to Bloomberg. He said that any attempt to block the straight will be illegal and will not produce the desired results.

"Iran is gradually becoming a big source of concern and people are worried what could happen next," Michael Smith, the president of T&K Futures and Options in Port St. Lucie, Florida, told the media outlet. "Gold is gaining on the fear."

February gold futures pared their earlier gains in afternoon trading to reach $1,618.60 an ounce at 1:14 p.m. on the Comex, the media outlet reports.

Gold prices are currently trading about $300 below their all-time high of $1,920 per ounce hit in September, but various factors could contribute to appreciation in the precious metal, according to ETF Trends. Central banks have made efforts to stimulate the economy by flooding the money supply, which could be inflationary.

Copper rises on first trading day of 2012

Thu, 05 Jan 2012 18:32:09 GMT

Various measures of copper prices rose on January 3, which was the first day of trading in 2012. Copper mining stocks could be bolstered by rising prices for the industrial metal.

"I think 2012, at least this first quarter, is going to be very similar to 2011 where we have a day where everything is up two-to-three percent and the next day it's down two-to-three percent," Sean McGillivray, vice president and head of asset allocation for Great Pacific Wealth Management in Oregon, told Sky News. He added that "it's going to be very headline driven ... and driven by currency markets."

Copper prices soared to a three-week high in trading amid speculation from traders that increased Chinese manufacturing activity could increase demand for the industrial metal, according to Bloomberg.

Early trading was bolstered by a report released by China indicating that China's official purchasing managers' index (PMI) increased to 50.3 in December from 49 in November, which indicates expanding activity at factories, according to Reuters. A report later in the day indicating that U.S. manufacturing activity expanded by more than expected in December contributed to the rally in copper.

A devalued dollar contributed to many market participants purchasing various metals and putting upward pressure on their prices, Sky News reports. However, many traders were made hesitant by the bear market of 2011 and decided to not jump on the bandwagon of the rally that was happening in metals such as copper, zinc and lead.

Sky News reports that three-month copper futures on the London Metal Exchange (LME) rose 2.5 percent to close the session at $7,790 per ton, which was its highest value in three weeks. March contracts for the metal trading on the Comex division of the New York Mercantile Exchange rose 2.7 percent to reach $3.5285 per pound.

"The year has started on a better footing than many in the market had feared so it is not surprising to see commodities up across the board on the back of supportive equity markets, a weak dollar and lower risk aversion," Eugen Weinberg, head of commodity research at Commerzbank, told the media outlet.

Gold rises amid Iran concerns

Wed, 04 Jan 2012 18:59:21 GMT

Various measures of the price of gold appreciated on January 4 as the European Union (EU) forged a preliminary arrangement to prohibit oil imports from Iran. This inflation in the physical metal could cause the value of gold mining stocks to rise higher.

Live Oil Pricex has stated that dropping demand for the precious metal during the end of the year has managed to incentivize buyers who were previously reluctant. James Steel, an analyst at HSBC, told the media outlet that "with 40 percent of the world’s internationally traded oil moving through the Strait of Hormuz, even a low probability of the strait’s closure can have a material impact on oil and hence on gold prices."

Soaring demand caused gold futures to increase to a two-week high. February gold futures were trading 0.8 percent higher at $1,613.50 at 11:44 a.m. on the Comex division of the New York Mercantile Exchange, Bloomberg reports. The contact appreciated to as high as $1,616.10, which is the highest price for a most-active gold contract since December 22.

"If gold’s good, it’s not going to give Dennis a chance to get back in. It’s sort of like, if everyone can get in, then why bother?" Mark Fisher, founder and chief executive of MBF Clearing Corp., told The Christian Science Monitor. "Markets that are really good, stocks that are really good, positions that are really good, you get one chance."

Live Oil Prices reports that futures for spot gold increased to a session high of $1,614.08 before paring its gains to retreat to $1,607.90 per ounce by 15.30 GMT

While Greece did not originally support an embargo on Iran's oil, the country's announcement that it was dropping its objections means that EU officials may decide to impose more severe sanctions against Iran's banking and energy industries during a meeting on January 30, EU spokesman Michael Mann told Bloomberg.

"The safe-haven story is back because of the political developments," David Meger, the director of metal trading at Vision Financial Markets in Chicago, told Bloomberg via a telephone interview. "Also, we are seeing some bargain hunters return at current levels."

Gold rallies, tracks oil higher

Wed, 04 Jan 2012 15:44:13 GMT

Gold tracked oil prices higher on January 3, as various measures of the value of the precious metal increased. Gold mining stocks might reflect the rising value of the physical metal by increasing in price.

Bloomberg reports that Blackstone Group LP’s Byron Wien, who accurately predicted 2011's gold appreciation, wrote in a note that "accommodative monetary policies throughout the developed world cause a renewed migration to hard assets by individual investors and sovereign-wealth funds."

According to the media outlet, February gold futures were trading 2.3 percent higher at $1,603.40 per ounce at 12:40 p.m. on the Comex division of the New York Mercantile Exchange. Kitco News reports that spot gold was most recently trading $26.80 higher at $1,593.75. The London A.M. gold fixing was trading at $1,590.00, up from its previous level of $1,531.00.

Last year was the eleventh year in a row where prices for the metal rose, and gold appreciated 10 percent during the period, according to Bloomberg. The metal slumped 10 percent in December and reached $1,523.90 on December 29, which was its lowest value since July 7.

Crude oil was trading above $100 per barrel in the morning, according to Kitco News. This higher price for the commodity is serving as a boon for gold prices. Political maneuvers involving the United States and Iran are also putting upward pressure on prices for the precious metal. An Iranian ship fired a surface-to-surface missile on January 2, which was meant to display its control of the Hormuz, according to The Wall Street Journal.

"Fear trade is back because of Iran," Adam Klopfenstein, a market strategist at Archer Financial Services Inc. in Chicago, told Bloomberg in a telephone interview. "Also, we are seeing buying across commodities because of the weaker dollar."

Data provided by the U.S. Commodity Futures Trading Commission indicates that hedge funds and other wealth managers reduced bullish contracts on gold by 4.5 percent to 111,919 contracts during the week that ended December 27, according to the media outlet. This metric was the lowest for the contracts since January 2009.

PNG releases survey which points to rising silver prices in 2012

Tue, 03 Jan 2012 18:39:31 GMT

On December 27, the Professional Numismatists Guild (PNG) released a statement indicating the results of its membership survey on where precious metals prices will go in 2012. The member contributions pointed to increasing prices for silver, and this inflation could put upward pressure on the value of silver mining stocks, causing them to rise in value.

The individuals surveyed are top industry experts as well as dealers of bullion coins and rare counts. These market experts predicted that the price of an ounce of silver will increase to $34.04 at the end of the first quarter of 2012 and $48.73 by the end of the year. Estimates for the price of the metal at the end of 1Q12 varied from $24.35 per ounce to $57.50, and predictions for the price at the end of 2012 ranged from $23 to $130.

In describing the participants in the PNG survey, guild president Jeffrey Bernberg said in the statement that "these are professionals with an average of over 35 years each of frontline experience" trading various types of coins.

PNG predicts that gold and silver to rise in 2012

Tue, 03 Jan 2012 18:39:25 GMT

The Professional Numismatics Guild (PNG) released a statement on December 27, which indicated the results of its member survey for where silver and gold prices will go in 2012. The estimates of the various gold and bullion dealers who participated created a consensus which indicated that the price of gold will rise next year. This inflation could serve as a boon to gold mining stocks, raising their value.

"Thirty PNG member-dealers responded to the opinion poll that was conducted between December 16 to 23, 2011," PNG president Jeffrey Bernberg said in the statement.

Although the predictions point to inflation for the metal, the extent of the price increases varies among the different experts. The average estimate provided by the precious metals dealers for gold's price at the end of 2012 was $1,976.22, with individual predictions ranging from as low as $1,450 to as high as $2,575. The average estimate for the price of gold at the end of 1Q12 was $1,759.57, with individual predictions as high as $2,155 and as low as $1,475.

Copper tracks equities higher amid strong U.S. economic data

Tue, 03 Jan 2012 18:36:15 GMT

The price of copper tracked equities higher on December 29 as manufacturing data in the Midwest failed to make traders of the industrial metal more bearish. Rising values for this metal could be reflected in higher prices for copper mining stocks.

March copper futures were trading 0.6 percent higher at $3.387 a pound on the Comex division of the New York Mercantile Exchange, according to Dow Jones Newswires. The contract had crept down slightly to reach $3.37 in afternoon trading, CNN Money reports.

The contact rose in early trading as the Institute for Supply Management's purchasing managers index of Chicago-area factory conditions showed results close to the predictions of market experts, according to Dow Jones Newswires.

Many market experts are worried that the appreciation in the industrial metal will be limited by stunted economic growth in China and Europe, as these regions are major sources of demand, the media outlet reports.

"Concerns remain about Europe and growth in China and we don't see that changing before the year end," traders working for RBC Capital Markets stated in a note.

Gold rises on last day of 2011 trading

Tue, 03 Jan 2012 12:50:57 GMT

Various measures of gold prices rose on December 30, which was the final day of 2011 trading. Bloomberg reports that the commodity led other precious metals higher, buoyed by speculation that low valuations will trigger demand from market participants. This price appreciation in the physical metal might serve as a boon to the value of gold mining stocks.

"While we haven’t seen physical demand pick up yet, maybe people are anticipating it for next year," Marc Ground, a commodities strategist at Standard Bank Plc., told the media outlet via a telephone interview from Johannesburg. "January and February are usually good months in India, and a lower gold price might attract some buyers."

February gold futures increased 2.1 percent to reach $1,573.30 per ounce at 9:52 a.m. on the Comex division of the New York Mercantile Exchange, according to the media outlet. Later in the afternoon, the contract was trading at $1,555.70 per ounce, up from its price of $1,540.90 during the previous day, MarketWatch reports.

In the Indian domestic bullion market, several measures of gold also increased. The Economic Times reports that pure gold containing a purity level of 99.9 percent increased to 27,230 rupees (Rs) per 10 grams from its previous level of 26,695 Rs. Standard gold, which contains a purity level of 99.5 percent, spiked by 530 Rs per 10 grams to reach 27,100 per 10 grams from the previous day's close of Rs 26,570.

Data provided by Bloomberg indicates that holdings in gold-based exchange-traded products rose for the first time in three weeks. Assets in these funds increased 0.3 percent for the week ending December 30 after dropping 1.5 percent during the prior two weeks.

"We are seeing some buyers come in as the market looks oversold at current levels," Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, told the media outlet via a telephone interview.

The media outlet reports that the value of the precious metal was up 8.4 percent in 2011 as of December 29, which has put gold on track to reach its 11th consecutive year of gains.

Silver appreciates amid upbeat U.S. data

Fri, 23 Dec 2011 14:53:00 GMT

The price of silver rose on December 23, amid the release of various reports containing encouraging U.S. economic data. Silver mining stocks might benefit from rising values in the physical metal.

Spot silver appreciated by as much as 1 percent to reach $29.365 an ounce, Bloomberg reports. Shares of silver exchange-traded funds (ETFs) were higher in pre-market trading, according to Beacon Equity Research. ProShares Ultra Silver (ETF) was trading 1.43 percent higher at $47.59, and iShares Silver Trust (ETF) was 0.67 percent higher at $28.52.

Data released by the Commerce Department indicates that for the week ending December 16, jobless claims fell to their lowest level since 2008, reaching a total of 364,000. Additional data indicated a drop in the four-week moving average for applications to 380,250.

An index produced by the University of Michigan and Thomson Reuters indicated that consumer sentiment rose to its highest level in six months in December.

Copper tracks oil higher amid strong U.S. economic data

Fri, 23 Dec 2011 14:41:19 GMT

Various measures of the price of copper tracked oil higher on December 23, amid the release of various reports containing strong economic data related to the United States. Rising values for the industrial metal could serve as a boon to copper mining stocks.

March futures for the industrial metal trading on the Comex division of the New York Mercantile Exchange rose 1.2 percent to reach $3.455 per pound, according to Bloomberg. Three-month copper appreciated 0.9 percent to reach $7,608 a metric ton at 7:57 a.m. London Metal Exchange.

Reuters reports that copper prices have appreciated approximately 3 percent during the week, but have plummeted roughly 20 percent in 2011.

The recently-released data that is key to copper prices is the information regarding durable goods orders in the United States. Commerce Department data reveals that orders for these goods, which last for at least three years, soared 3.8 percent in November. The most notable increase was a 73 percent spike in spending on commercial aircrafts. This strong showing contributed to a 15 percent rise in transportation goods.

Labor Department data also contributed to optimism, indicating that jobless claims fell to their lowest level since 2008 during the week that ended on December 16. The total number of applications for people seeking jobless benefits dropped to 364,000, and the four-week moving average of applications also fell to 380,250 from its previous value of 388,250.

"The numbers out of the U.S. build a case that the economy is recovering. (Also) there is speculation the Federal Reserve might keep rates close to zero until 2014, and there's the new soft rhetoric from the European Central Bank," Danske Bank analyst Arne Lohmann Rasmussen told Reuters. "We are recommending our clients buy at these levels."

February crude futures were trading 36 cents higher at $99.89 per barrel on the New York Mercantile Exchange, according to Bloomberg. The appreciation that the commodity experienced in early trading on December 23, increased oil's gain for the week to 6.9 percent, The Wall Street Journal reports.

Copper tracks oil higher amid strong jobs data

Fri, 23 Dec 2011 13:58:55 GMT

The price of copper tracked the price of oil higher on December 22, as U.S. government agencies released encouraging data related to jobless claims and consumer confidence. Prices for copper mining stocks could potentially be buoyed by inflation occurring in the physical metal.

Three-month copper contacts trading on the London Metal Exchange appreciated 1.1 percent to reach $7,540 per metric ton ($3.42 per pound), according to Bloomberg. March copper futures trading on the Comex division of the New York Mercantile Exchange closed up 0.6 percent at $3.4155 a pound. Bloomberg reports that on the Shanghai Futures Exchange, March copper futures closed 0.5 percent at 54,870 yuan ($8,655) a ton.

"The bottom in copper is already in," Michael Smith, the president of T&K Futures & Options, told Bloomberg in a telephone interview. "It’s all about optimism in the U.S., about getting people to spend more and put more money into stocks and commodities."

February crude oil appreciated by as much as 72 cents to reach $99.39 per barrel in electronic trading on the New York Mercantile Exchange and was trading at $99.31 at 4:18 p.m. Singapore time, according to Bloomberg.

Data released by the U.S. Department of Labor indicates that jobless claims fell to 364,000 during the week that ended December 16. The four-week moving average also fell by 8,000 to hit 380,250.

"Holiday hiring is clearly cutting into unemployment much more deeply than it did last year or the two years prior," Chris Low, chief economist at FTN Financial, told RTT News. "Of course, we cannot know if claims will stay this low when the holiday season is over, but for now it is encouraging to see thousands more Americans have a month or two of unexpected income, even if it is temporary."

Reuters reports that consumer confidence increased to its highest level in six months in December. The Thomson Reuters/University of Michigan's final reading on the overall index on consumer sentiment increased to 69.9 for the month from 64.1 in November. This metric exceeded the median forecast of 68.0 which was provided by economists who participated in a Reuters poll.

Copper gains amid strong economic data and weak U.S. dollar

Wed, 21 Dec 2011 17:40:53 GMT

Copper prices appreciated on December 20 amid a declining U.S. dollar and strong economic data in Germany and the United States. Copper mining stocks might experience upward pressure on their values as a result of rising prices of the physical metal.

Three-month copper contracts trading on the London Metal Exchange rose to as high as $7,470 per ton before closing at $7,410, according to Reuters. December copper futures increased 1.9 percent to reach $3.3630 a pound, Dow Jones Newswires reports. March copper, which is the most-active contract, rose 1.8 percent to reach $3.3695 per pound on the Comex division of the New York Mercantile Exchange.

According to the media outlet, copper futures increased after Commerce Department data was released which indicated that new housing starts rose to 685,000 in December, which was a 9.3 percent increase over the previous month. These results far exceeded the median forecast of 635,000 provided by 79 economists polled by Bloomberg News. Building permits also gained 5.7 percent.

Separate data revealed that in December, business confidence increased in Germany rose for the second month in a row. This improvement contrasted with the predicted decrease in business sentiment, Reuters reports.

"It's entirely to do with confidence. Anything that looks slightly positive generally causes a short covering rally," Citi analyst David Wilson told the media outlet. "The euro (zone) debt crisis hasn't gone away, it's difficult to be positive short term if you think China is not going to be doing much in January because of the new year, and I don't think markets think that European politicians have much credibility."

Copper prices have dropped almost 25 percent since the beginning of 2011, according to the media outlet. These results have placed the industrial metal on track to record to its annual decline since 2008. Market ire has forced many investors to sell assets, including copper. Analysts have cautioned that copper values could be threatened by the impact of the European debt crisis on investor confidence.

FastMarkets wrote in a note that "we would expect prices to be buffeted about by the news flow but in the absence of any major development we would look for further consolidation, with a downside bias as the technical indicators generally seem to be pointing lower," the media outlet reports.

Gold extends gains amid falling dollar and ECB lends almost 500 billion Euros

Wed, 21 Dec 2011 17:40:35 GMT

The value of several measures of gold appreciated on December 21 amid a falling dollar and news that the European Central Bank (ECB) had lent out almost 500 billion euros to regional banks. Gold mining stocks might benefit from the appreciation that happened in several different measures of the precious metal's value.

The value of spot gold was trading 1.5 percent higher at $1,637.79 an ounce at 1032 GMT, after the ECB announced that it had lent a total of 489 million euros in a 3-year tender, according to Reuters. This amount exceeded the expectations of various market participants. Economists had forecast that the bank would lend out a total of 300 billion euros, RTT News reports.

February gold futures, which is the most actively traded contract, increased $8.70 to hit $1,626.30 per ounce on the Comex division of the New York Mercantile Exchange, according to the media outlet.

The SPDR Gold Trust climbed 0.2 percent higher after data on November's existing home sales indicated that demand in the housing market remained tepid, Barron's reports.

The U.S. dollar approached a weekly low against the Swiss franc and the euro, while sinking to its lowest level in two weeks against the sterling, according to RTT News. Dow Jones reported that the 17-nation euro was trading higher against the dollar at $1.3105, up from the $1.3082 that was hit late in the previous day's trading in New York.

IG Markets analyst Cameron Peacock told the media outlet that "at the moment, [gold] is going to be driven by the direction of the dollar."

He added that the movements of gold prices have largely determined by movements in the dollar, and that this trend will probably continue for the rest of 2011.

Various commodities receive more funds as a result of a depreciating dollar as the items seem cheaper to those who hold other currencies.

"Europe situation is serious but this is not a repeat of 2008," Independent analyst Jordan Roy-Byrn told clients, according to Barron's. "Mining stocks recovered very quickly after 2008 and gold doubled off the bottom in about two years."

Gold gains as euro appreciates amid strong economic data and IMF pledge

Tue, 20 Dec 2011 19:00:23 GMT

The price of gold rose on December 20 as the 17-nation euro rose in value amid the release of strong economic data in both Germany and the United States and news that Europe made a pledge to the International Monetary Fund (IMF) to help alleviate regional debt problems. Gold mining stocks might be buoyed by this uptick in the price of the physical metal.

February gold futures closed up $19.50 at $1,616.20 per ounce on the Comex division of the New York Mercantile Exchange, Kitco News reports. Gold was trading at $1,613.50 in London, up from $1,598.00. Spot gold was most recently $20.30 per ounce higher at $1,614.75. Prices for this contract are less than $10 away from their 200-day moving average of $1,621 per ounce, according to Reuters.

"The afternoon rally in risky assets and gold seems to have been spurred by better-than-expected U.S. housing data, which in turn further pushed the U.S. dollar lower," BNP Paribas analyst Anne-Laure Tremblay told the media outlet. "The rebound in the gold price could prompt some short-covering, and we could retest the 200-day moving average in the coming days."

The euro increased by as much as 1 percent versus the U.S. dollar, according to Bloomberg. This appreciation helped the common currency to reach its highest exchange rate against the greenback since December 13, Reuters reports.

The value of the currency increased after Europe pledged 150 billion euros ($196 billion) to the IMF, according to Bloomberg. The euro's value was also buoyed by Commerce Department data indicating that housing starts surged 9.3 percent to reach a seasonally-adjusted rate of 685,000 and building permits also rose 5.7 percent to hit 681,000. In December, German business confidence increased for the second consecutive month.

"We moved up on a better-bid euro, after the headlines that the IMF may put in more funding to help Europe," Bart Melek, an analyst at TD Securities in Toronto, stated via an e- mail, the media outlet reports. "Hopes of extra funds from the IMF boosted risk appetite, and we are seeing less liquidity-seeking activities."

Gold recovers to push past $1600 amid European debt concerns

Tue, 20 Dec 2011 16:19:32 GMT

The price of gold rose on December 19 as concerns as debt problems in Europe fed demand for the precious metal as a safe haven from economic volatility. Gold mining stocks might benefit from this increase in the price of the physical metal and experience appreciation.

Bloomberg reports that gold bullion for February delivery was up 0.6 percent at $1,607.20 per troy ounce at 8:23 a.m. on the Comex division of the New York Mercantile Exchange. Data provided by Kitco's gold index indicates that the contract traded as high as $1,611.50 and sank as low as $1,585.50, according to The Street.

Gold scheduled for immediate delivery was 0.4 percent higher at $1,605.10 in London trading, Bloomberg reports. December gold was trading up 0.3 percent at $1,600.40 per troy ounce, according to Dow Jones Newswires.

Traders and investors who have a stake in the commodity are closely monitoring Europe after Fitch Ratings reduced France's credit outlook to negative from stable on December 16, the media outlet reports. The ratings agency also put Italy and Spain on negative watch on that day. The country is more susceptible to the regional debt crisis than other euro zone nations due to current borrowing practices and budgeting shortfalls, according to Bloomberg.

Moody's Investors Service recently announced that it plans to review the credit ratings of all 17 euro zone nations during the first quarter of 2012. Standard & Poor's has announced that it is reviewing the credit ratings of 15 of the countries for possible downgrade, including six nations with AAA ratings.

Gold sank during the week that ended December 16 as the greenback appreciated to its highest value relative to the euro in 11 months, the media outlet reports.

"Gold suffered from a renewed rush for dollar liquidity, but in the long run its outlook remains solid," Andrey Kryuchenkov, an analyst at VTB Capital in London, stated in a report written on December 19. "Accommodative monetary policy across the globe will continue to secure gold’s inflation hedge role."

Spot gold rises amid low dollar and short covering

Fri, 16 Dec 2011 19:40:57 GMT

The price of spot gold increased on December 15 amid a low U.S. dollar and short-covering stemming from sharp losses that occurred on December 14. Gold mining stocks might appreciate as a result of these prices of the physical metal rising.

The value of spot gold appreciated 0.7 percent to reach $1,585.38 per ounce at 1415 GMT after experiencing its sharpest one-day drop in almost three months amid European debt concerns and selloffs by various funds, Reuters reports. U.S. gold appreciated 0.1 percent to reach $1,587.90 per ounce.

"With the sharp falls we have seen (yesterday), there is a bit of short-covering. The strength of the bounce, however, has been rather modest, because the gold market tends to quieten down quite rapidly from the beginning of December," Ross Norman of Sharps Pixley told the media outlet. "At the moment gold is moving in tandem with the euro, and in the short-term currencies will continue to be the main driver for gold. It's all about the U.S. dollar."

Downward pressure was also placed on gold by a Federal Reserve announcement on December 14 that it probably would not engage in more quantitative easing, according to MarketWatch.

The dollar index fell on December 15, the media outlet reports. The measure was trading at 80.191 at the time of report, down from the level of 80.538 it reached late in North American trading on December 14.

"If you look at the U.S. dollar and how it represents a safe-haven play, by default all commodities are under pressure," Barratt told the media outlet. "Also gold is one commodity which has held up, so it has had the furthest to fall."

HSBC analyst James Steel told the media outlet his opinion that "stress" in the markets "has not stimulated safe-haven gold buying but has instead weakened the euro and indirectly helped drag gold lower."

Although gold is perceived as a safe haven by many investors that can help to shield their principal amid volatility, it has recently become increasingly correlated with other assets as the risk sentiment of investors is persistently weak, Reuters reports.

Copper rises amid positive economic data and bond sale news

Fri, 16 Dec 2011 19:40:45 GMT

The value of copper appreciated on December 15 amid the release of strong economic data and positive news on a Spanish bond sale. This price increase could benefit copper mining stocks by putting upward pressure on their valuations.

Dow Jones Newswires reports that copper futures scheduled for March delivery were up 1.2 percent at $3.3175 a pound on the Comex division of the New York Mercantile Exchange. The value of the contract later rose to as high as $3.307 a pound before paring its gains to reach $3.292 during European morning trading, according to Forexpros.

The value of copper dropped almost 5 percent on December 14 to reach its lowest value in three weeks as investor sentiment was undermined by European debt concerns, the media outlet reports. Moody's Investors Service announced earlier in the week that it plans to review the credit rating of all 17 euro zone nations during the first quarter of 2012. Standard and Poor's announced earlier in the month that it is reviewing the credit ratings of 15 nations that use the euro for potential downgrades, including six countries that currently have pristine AAA ratings.

Prices for the industrial metal were affected by a successful auction held by Spain's Treasury, according to the media outlet. The auction managed to sell 2.5 billion euros worth of five-year bonds that had an average yield of 4.02 percent, which is a substantial decrease from last month's interest rate of 5.27 percent. Spain also auctioned 1.4 billion euros worth of ten-year bonds with an average yield of 5.54 percent, down from the interest rate of 6.97 percent of the bonds sold in November.

Copper prices were also affected by data indicating that manufacturing activity declined in both China and Europe during December. Data provided by HSBC's China purchasing managers' index revealed that manufacturing activity declined for the second month in a row, the media outlet reports. These movements could be significant since China is the largest consumer of copper in the world, being responsible for 40 percent of 2010 demand for the metal.

Silver tracks gold higher amid weak value of dollar

Fri, 16 Dec 2011 14:17:39 GMT

The price of silver tracked gold higher on December 14 amid a sinking dollar. This price increase might be reflected in the value of silver mining stocks.

Silver futures for March delivery trading on the Comex division of the New York Mercantile Exchange rose 0.1 percent to reach $28.95 per ounce, according to MarketWatch. Spot silver fell to $28.10 before paring its losses and appreciating to $29.05, Reuters reports.

"Silver's rally this year was driven by strong investment demand building upon relatively healthy industrial consumption," Barcap analysts stated in a note, according to the media outlet. "However, the industrial outlook for the metal has weakened and investor interest has turned negative in a market in fundamental surplus, exposing prices to the downside."

Data released on December 15 indicated that foreign direct investment in China experienced its first year-over-year decline in 28 months and a decrease in new orders pointed to dropping manufacturing activity in the region, the media outlet reports.

Silver demand could rise into the start of 2012, predicts James Steel of HSBC

Wed, 14 Dec 2011 17:24:14 GMT

James Steel, an analyst who works for HSBC, has stated that silver could rebound from its recent price depreciation as demand for the metal as a safe-haven asset returns into the new year, according to a statement released by Paragon Report. This appreciation in the price of silver could put upward pressure on the value of silver mining stocks.

HSBC recently increased its forecasts for silver prices in both 2013 and 2013, basing this on its belief that demand for silver exchange-traded funds (ETFs) as well as investment demand for metal bars and coins will help to support the prices of the physical metal.

Steel stated in the report that the desire of investors for safety could boost demand for silver ETFs and therefore the price of the metal. He predicted that an upswings in industrial demand for the metal should put upward pressure on prices.

"Coin and bar demand is a growing component of the silver market," Steel said in the statement. "We believe that demand for these products reflects widespread retail investor concerns about inflation, economic uncertainty, and fiscal profligacy, European sovereign-debt risks, and geopolitical tensions."

Further evidence that silver will be in strong demand including production levels that are rising in anticipation of increased desire for the metal. Various market participants are contending that the debt problems in both Europe and the United States will continue to put upward pressure on precious metals. Hecla Mining Company, which is the largest silver producer in the United States, generated a total of 2.3 million ounces of the metal during 3Q11. The average production cost per ounce was 67 cents, and the average price for an ounce of the metal was $37.

On December 1, HSBC predicted that silver will cost $34 per troy ounce in 2012 and $32 per troy ounce in 2013, according to NASDAQ. The bank also provided a 2014 forecast of $28 per troy ounce. At the time, the bank predicted that demand from ETFs alone would account for investing in 50 million ounces of silver in 2012, after 2011 observed a net divestment of 15 million ounces.

Silver rises after European agreement announcement

Tue, 13 Dec 2011 18:19:28 GMT

The price of silver rose on December 9 after news of a European agreement aimed at improving the fiscal situation of the region was announced. Silver mining stocks might benefit from this appreciation in the price of the physical metal and increase in value.

March silver contracts trading on the Comex division of the New York Mercantile Exchange were trading $0.532 higher at $32.07 per ounce, Kitco News reports.

The 17 member nations of the euro zone agreed to sign a treaty, but not all 27 members of the European Union committed to participating in the agreement, according to Reuters. The U.K. was the one country that did not want to get involved. The new arrangement aims to improve fiscal responsibility by providing a central European authority with increased control over the finances of participating countries. A new sense of German willingness to contribute to funding efforts was positive for markets, Kitco News reports.

Silver tracks gold's market rally

Tue, 13 Dec 2011 17:39:24 GMT

Silver tracked gold higher on December 13 as investors sought the precious metals amid recent events that have boosted risk aversion. Silver mining stocks might benefit from these increases in the price of the physical metal.

Silver futures scheduled for March delivery increased 2.3 percent to reach $31.725 per ounce, which was the second gain in three sessions, Bloomberg reports. Earlier in the day, the price of an ounce of gold fell to $1,654.40, which was its weakest value since October 25.

The previous day, the markets were roiled as ratings agency Moody's Investors Service announced that it was planning to review the credit ratings of all 17 European Union nations during 1Q12. Earlier in the month, Standard & Poor's stated that it is considering lowering the ratings of 15 of the euro zone nations, including Germany and France, which both have AAA ratings.

Gold prices rise as demand is triggered by recent seven-week low

Tue, 13 Dec 2011 17:03:30 GMT

Gold prices rose on December 13 as the lowest prices for the metal in seven weeks triggered demand. Gold mining stocks might benefit from this increase in the price of the physical metal.

Gold futures scheduled for February delivery appreciated 0.5 percent to reach $1,677.10 at 9:56 a.m. on the Comex division of the New York Mercantile Exchange, according to Bloomberg.

The price of the precious metal fell to as low as $1,654.40 per ounce earlier in the day, which was its lowest value since October 25, the media outlet reports. Early in the day, the dollar appreciated versus the euro after ratings agency Moody's Investors Service announced that it plans to review the credit ratings of all 17 member nations of the European Union during the first quarter of 2012. Also, fellow ratings agency Standard & Poor's announced recently that it is considering lowering the ratings of 15 of the eurozone nations, including six countries that have AAA ratings.

Data compiled by Bloomberg indicates that the amount of gold held by exchange-traded products increased 3.8 metric tons to reach a new record of 2,360.5 tons on December 12. Assets spiked 84.8 tons in November, which was the largest amount since July.

Gold holdings ticked down slightly to 1,294.80 tons from 1,295.40 tons for SPDR Gold Trust, which is the largest exchange-traded fund backed by the precious metal in the world, according to RTT News.

"Gold is at a critical juncture," Robin Bhar, senior metals analyst at Credit Agricole, told MarketWatch.
Bhar wrote in a note to clients that the movements of the metal "over the next few days could signal its next big move."

"The approach of year-end and the need for [the dollar] to meet funding commitments in an already heightened environment of stresses in the inter-bank lending markets continues to see gold under pressure," he added. If the current level of lending against gold continues, it "could act to cap gold prices in the short term as we witnessed last week, as rallies above $1,760/ounce were quickly capped."

If his solution is implemented, the money supply will decrease dramatically, which should cause substantial deflation. The value of gold mining stocks could potentially mirror the increase in the price of the physical metal and firms that extract the commodity in resource-rich areas like British Columbia might benefit from the appreciation.

Copper gains, traders become bullish for first time in six weeks

Mon, 12 Dec 2011 16:12:00 GMT

Copper prices rose on December 2 along with U.S. equity futures and surveys indicated trader expectation of appreciation in the industrial metal for the first time in six weeks. Investor sentiment was buoyed by the recent announcement that six central banks were planning measures to boost liquidity and a positive U.S. jobs report. Copper mining stocks might benefit from rising prices of the physical metal.

Bloomberg reports that the price of three-month delivery copper on the London Metal Exchange rose 1.2 percent to reach $7,880 per metric ton. Futures for the Standard and Poor's 500 index rose 0.6 percent and the MSCI All Country World Index gained 0.4 percent.

Investor sentiment received a significant boost after central banks of various countries announced that they would engage in steps aimed at increasing liquidity and alleviating Europe's debt problems, according to the media outlet. Several of these financial institutions announced they would be cutting interest rates.

Data released by the Labor Department indicated that U.S. nonfarm payrolls experienced a net increase of 120,000 jobs in November. The jobless rate also fell to 8.6 percent, which was its lowest point in 2.5 years.

"The U.S. economy isn't as weak as investors feared," Kenji Sekiguchi, general manager at Tokyo-based Mitsubishi UFJ Asset Management Co., told the media outlet. "The focus has shifted temporarily away from Europe and toward the U.S., while investors wait for Europe to come up with policies."

A Bloomberg survey of traders indicated that for the first time in six weeks, the market experts expect copper prices to increase amid evidence of growing demand spurred by falling global inventories. Of 24 respondents polled by the media outlet, 12 expect that copper prices will increase during the week of December 5 and two more respondents were neutral in their predictions.

Market experts last predicted an increase during the week that ended October 21, and copper experienced a subsequent 14 percent increase over the next five days, according to the media outlet. Bloomberg data indicates that global stockpiles have plunged 23 percent since March.

Gold rises with euro as Europe creates pact

Fri, 09 Dec 2011 17:40:12 GMT

Gold prices appreciated on December 9 along with the euro as a European Summit meeting produced an agreement between several nations that will allow a central European authority to have greater control over the finances of countries that participate. Gold mining stocks might follow these increases in the price of the physical metal.

European Union (EU) officials established the new more stringent rules, but failed to get all 27 members of the union to sign the treaty, Reuters reports. The 17 member nations of the euro zone agreed to sign the treaty, according to The Financial Post. Kitco News reports that Britain refused to sign the contract but almost all the remaining countries agreed to rewrite their treaties to improve the financial state of the EU.

"(Gold’s) latest relative weakness can be expected to prompt investors – who recently took a positive view of gold – to continue shedding their positions," Commerzbank analysts stated in a note, according to Reuters. "A possible price slide below $1,700 may thus accelerate a further slump. Despite these short-term tendencies, we do not believe gold's long-term upwards trend to be under threat. A possible price slide below $1,700 may thus accelerate a further slump. Despite these short-term tendencies, we do not believe gold’s long-term upwards trend to be under threat."

Spot gold was up 0.5 percent for the day at $1,715.34 per ounce at 1310 GMT, Reuters reports. The price of spot gold fell close to $1700 overnight. February gold was most recently trading up $9.60 at $1,723.00 per ounce, according to Kitco News.

VTB Capital analyst Andrey Kryuchenkov told Reuters that the price of gold would not experience any fluctuations until Jose Manuel Barroso, president of the European Commission, spoke later in the day.

He added that "I wouldn't get carried away. (The EU leaders) need to convince the market that the crisis can be contained. Gold is trading completely against the dollar, moving in the opposite direction ... and the physical side of the market is very quietly waiting on the sidelines for a pullback to start buying."

Copper to rise in 2012, say analysts

Fri, 09 Dec 2011 15:18:24 GMT

The price of copper is expected to increase in early 2012, with that increase most likely starting at the end of the first quarter, analysts told Barron's on December 7. The analysts who spoke with the media outlet attributed their prediction to many factors. This appreciation could cause the price of copper mining stocks to increase.

The media outlet reports that although a copper exchange-traded note (ETN) named iPath Copper ETN was most recently down 0.8 percent when the story was reported, the market experts who spoke with the media outlet predict the metal will rise.

One major driver of copper demand could be the way cars are manufactured in the United States, according to the media outlet. The current process used to make a car uses 50 pounds of copper on average.

Catherine Virga, research director at commodities research firm CPM Group in New York, stated that upgrades to the manufacturing process are expected to put upward pressure on copper prices, the media outlet reports.

Another factor is supply, with the market for the industrial metal experiencing a shortage for the last several years, according to Financial Post. Data provided by the International Copper Study Group indicates that the utilization of mine capacity dropped from more than 90 percent at the beginning of the last decade to 80.4 percent in 2010. This capacity utilization dropped further to 77.5 percent during the first eight months of 2011.

Fluctuations in demand stemming from the seasons could impact the demand for copper, Barron's reports. Increasing temperatures could drive up consumer demand as various items ranging from heavy machinery to air conditioners experience more usage.

Speculation that China will continue to focus on boosting economic growth could increase demand for the metal if the country continues affordable housing construction and upgrades to its electrical grid, according to the media outlet. These potential projects are perceived to be positive for the price of copper, analysts state. Virga stated that "we’re looking to see policies that are more designed to foster expansion in China’s domestic economy as we move into a new year."

Gold will extend its 2011 gains into 2012, says Dillon Gage Metals

Thu, 08 Dec 2011 18:39:15 GMT

Dillon Gage Metals released a statement on December 6 stating its prediction that even though the price of gold reached an all-time high in September, it could extend these gains to reach even higher levels in 2012. Terry Hanlon, the president of the metals dealer has predicted that the price of the precious metal could appreciate to $2,000 per ounce next year, and some dealers think it could hit $2,300. The value of gold mining stocks might benefit from the rising price of the physical metal.

In December, an ounce of the precious metal is worth $350 more than the same time last year. Commodity traders are currently awaiting the results of the European summit that is scheduled for December 8 and 9. Since many market spectators are hoping that the treaties of the member countries will be changed to keep their budgets under control.

In 2011, the price of an ounce of gold fluctuated in a range of around $550. There have been many factors that contributed to the volatility in the metal. One of them was political and economic uncertainty in both the United States and Europe. The United States came very close to default but managed to hammer out a compromise at the last minute.

One crucial determinant for gold prices is the reserves that central banks maintain of the precious metal. More than 148 net tons of gold were purchased in 3Q11, according to data provided by the World Gold Council in November. Gold supplies increased 2 percent year over year during the period and demand for the metal rose 6 percent.

Another factor is low interest rates that were maintained during the year. These low rates served to bolster the value of the precious metal. There was also some impact that came from a falling dollar but the reserve currency did manage to make a recovery in the second half of the year.

"Gold's long-term prospects remain strong as demand continues to rise, while growth in world supplies should remain limited." Hanlon said in the statement. "Uncertainty about U.S., European and other economies will clearly keep investors interested in precious metals in 2012."

Silver mining stocks could benefit from rising prices in the metal

Thu, 08 Dec 2011 13:08:27 GMT

The price of silver gained on December 6 as markets reeled from an announcement made by ratings agency Standard and Poor's (S&P) that the firm might lower the credit ratings of various European nations. Silver mining stocks could benefit from this appreciation.

Silver futures scheduled for March delivery closed $0.348 higher at $32.72 per ounce, according to Kitco News. The market for precious metals is being affected by the December 5 announcement that S&P could potentially downgrade the credit ratings of 15 of the 17 nations that comprise the euro zone.

The potential downgrades of the euro zone countries “continued to cause liquidation in the gold market,” Jim Steel, a precious metals analyst with HSBC in New York, told MarketWatch. He added that the value of other metals was affected by worries that the economy is decelerating.

On December 6, the ratings agency added to the overall market jitters by issuing a warning regarding the overall debt of the European Union, Kitco News reports. The possibility of downgrades not only made investors more nervous, but the timing of the announcements also increased the anger of investors.

The two potential downgrade announcements came during a time when many market observers feel that the general debt situation in the euro zone is improving and that the most challenging parts have now been passed, according to the media outlet. S&P warned the countries a few days before a European Summit was scheduled. The markets have calmed somewhat, and many believe that the key lawmakers have a better handle on how to cope with the crisis.

Kitco News reports that the failure of S&P to predict the global financial crisis that began in 2008 is causing the agency to be overzealous in identifying companies that need to be downgraded. The ratings agency's inability to predict such a large economic event caused its credibility to plummet in the eyes of many market observers. S&P was also blamed for proving overly-high ratings for various financial instruments that later proved to be worthless.

The value of silver mining stocks could mirror this rise in price for the physical metal and firms that extract the commodity in resource-rich areas like Northwestern Mexico might benefit from this increase.

Gold mining stocks set to rally

Thu, 01 Dec 2011 19:46:01 GMT

The gold mining business has been a tough industry to bet on in terms of capital investments and following the price of stocks. However, the metal could begin to become more valuable for firms that extract it as a resource, due in part to the rise in value for the commodity itself, Seeking Alpha reported.

The value of gold mining stocks for companies that hold significant deposits of the metal in resource-rich areas like British Columbia is set to rise due to economic developments throughout the western markets and an increase in demand.

According to the news source, some investors prefer the safety of gold bullion, but this may limit the gains that can be made.

The Jutia Group reported that these companies and the mining stocks that are associated with them will benefit from the European debt crisis, as a rise in the price of the physical metal will help to improve the standing that these firms have.

According to the news source, the limiting factor for the rise in value for gold mining stocks has been its association with the rest of the market. Because currencies and economies around the world have dropped by significant margins, this has kept the mining stocks from rising to levels that they should have achieved right alongside their physical counterpart.

The price of gold bullion has risen more than 21 percent for the year due to a basket of economic factors ranging from the European debt crisis to a slump in the U.S. manufacturing data during the summer months. Mining stocks haven't fared as well, as the XAU Index of Mining Stocks is down close to 10 percent for the year, but this could change.

According to the Jutia Group, the stock market is now entering its favorable season and this could have a significant positive impact on the value for a mining company's stocks. A pairing of the mining stocks with the physical bullion could also push the value of these assets higher in the coming months.

According to CNN, the price of gold has been hovering around the $1,775 an ounce and may increase in the near future due to a rush to safe-haven metals.

Congo vote might lower copper output

Thu, 01 Dec 2011 19:20:30 GMT

The regional stability that has enabled the Congo to quintuple its copper production over the last five years may be undermined by the area's first elections in five years. The potential supply disruptions that could follow this turmoil could increase the value of copper mining stocks.

Both Congolese rights groups and The United Nations have predicted that violence is a likely occurrence preceding the December 1 vote, which involves incumbent President Joseph Kabila and 10 potential replacements, according to Bloomberg. A total of 500 seats in parliament are also being vied for, and 19,000 candidates are competing for the seats.

The New York Times reports that violence was widespread on November 29, the second day of nationwide elections. Voting operations were disrupted and shootings occurred. Individuals in some regions were casting ballots at the time and in other places were counting votes. Congo's election commission had threatened to not count tens of thousands of votes from the opposition party. Far-reaching violence was triggered when another election was disputed in 2010.

Public angst towards the current election procedures triggered a violent showdown between security forces and opposition forces across the region, according to Bloomberg. A minimum of eight deaths and 74 injuries were recorded when a fight between these groups broke out of November 26.

"Should post-election protests take a violent direction, further questions over Kabila’s legitimacy will be raised, which will have a negative impact on investment and expansion plans in the medium term," Mike Davies, associate director at research firm Maplecroft, stated in an e-mail, according to the media outlet. "After several years of relative stability, major political violence in Katanga will represent a shift in the base case on which current investments have been made."

The media outlet reports that Copper output for the region has risen to 500,000 metric tons per year from 100,000 tons in 2006, according to central bank data. Various companies including Eurasian Natural Resources Corp., Freeport McMoRan Copper & Gold Inc. and Glencore International Plc contributed to this surge in production by ramping up projects in the area. Experts estimate that 4 percent of the world's copper reserves exist in the Congo, primarily in the southeastern Katanga province.

Any supply disruption could boost copper prices. The value of copper mining stocks could reflect this rise in the price for the physical metal and firms that extract the commodity in resource-rich areas like Northwestern Mexico might benefit from the increase.

Silver prices rise following move by banks to boost liquidity in financial system

Thu, 01 Dec 2011 14:56:25 GMT

The price of silver has rebounded sharply from slight losses that were posted in trading on November 28 and 29. The metal rose in value due to a move by the major banking institutions around the world concerning liquidity in the markets, according to Beacon Equity Research.

This rise in price for the physical metal could affect the value of silver mining stocks, as companies that hold significant deposits of the commodity in resource-rich areas like Northwestern Mexico may see a sharp increase for these assets.

CNN reported that the value of silver rose by a margin of 2.76 percent during trading. The price of the commodity rose $0.87 to $32.73 an ounce for December delivery, the most actively traded contract on the New York Mercantile Exchange.

The situation with the banking institutions, specifically the Federal Reserve and the European Central Bank, was a coordinated action to limit the liquidity in the financial system. The price of silver rose because investors moved to the commodity markets, according to Beacon Equity.

This was a move that the banks were hoping would ease the European debt crisis' effect on the rest of the market. Though the move was seen as unprecedented by some experts, the news source noted that more had to be done.

"Europe is still looking like it’s probably heading for a recession next year, and that issue is not going away. Politicians are dancing around the edges of the problem, rather than getting to the meat of it," David Wilson, director of metals research and strategy at Citi, told Active Investor.

According to the news source, the value of silver was pushed up by this European uncertainty and moves by the banks to limit liquidity in the markets, but the metal was also helped by China cutting its bank reserve ration.

Beacon Equity reported that this cutting of bank reserves by China, the first time in three years that the Asian superpower has done this, could mean that inflation worries in the country have now eased.

Commodity Online reported that several key investors are investing in silver rather than gold following this news, and these large purchases, which pushed the price of the metal up last time this occurred, could contribute to an increase in the value of silver mining stocks.

Gold mining stocks could have strong upside in 2012

Thu, 01 Dec 2011 14:56:11 GMT

Financial services giant Morgan Stanley recently announced that gold is its top commodity pick for 2012. If the prediction is true, it could be beneficial for the prices of gold mining stocks.

The forecast is largely based around the financial services giant's belief that continuing global economic weakness will provide a strong environment in which the precious metal can thrive. The deceleration of emerging-market economies and fiscal problems in both Europe and the United States will continue to undermine the health of the global economy, Dow Jones Newswires reports.

Economists working for the financial services company expect that the GDP of the global economy will expand by 3.5 percent in 2012, which is down from its earlier prediction of 3.8 percent, according to Reuters. The first six months of the year are expected to exhibit more modest growth than the last six months.

"The defensive nature of gold should continue to support investment demand as investors look for safe havens," commodity analysts working for the bank stated in a research note, Dow Jones Newswires reports. "A continued low or negative real interest rate environment will also provide support."

According to Reuters, gold is one of the most preferred commodities during an economic downturn, while crude oil and base metals tend to suffer in a recession. The perception that gold is safe haven will trigger investment for the precious metal if the global economy goes south and motivates investors to seek less-risky assets.

Analysts working for Morgan Stanley stated that with the continuous supply of disheartening economic news, they are more selective about picking commodities that provide strong returns in weak economic climates. These market experts stated that investors should be careful about what commodities they invest in when taking long positions, Dow Jones Newswires reports.

The bank stated that commodities whose performance is tied to the strength of economic growth tend to do poorly during periods of recession, according to the media outlet. Crude futures have been reduced by falling demand, and surpluses are expected for zinc, nickel and lead.

The value of gold mining stocks could reflect the rise in price of the physical metal that Morgan Stanley predicts will happen in 2012 and companies involved in the extraction of the commodity in resource-rich areas like Northwestern Mexico might benefit from this increase.

Silver prices appreciated amid global debt problems

Wed, 30 Nov 2011 15:37:15 GMT

Prices for the precious metal silver appreciated on November 22 amid concerns that Europe and the United States will not be able to solve their debt problems.

The bipartisan "super committee" was unable to reach a compromise to lower the federal deficits of the United States, and this failure triggered automatic spending cuts that will commence in 2013. A meeting of the lawmakers involved that happened on November 7 looked like it held potential to create progress, but the trust between the crucial players deteriorated as information that was supposed to be kept confidential became public, according to Reuters.

Silver contracts scheduled for December delivery were up 91 cents in morning trading at $32.03 per ounce on the Comex division of the New York Mercantile Exchange, Barrons reports. The iShares Silver Trust increased 2.2 percent during the day.

One factor that was credited with the runup in prices for the precious metal was strong demand for exchange-traded notes and exchange-traded funds (ETF) backed by silver bullion, according to the media outlet. One mining fund that benefited from these developments was the Global X Silver Miners (SIL) ETF, which rose 1.5 percent.

Gold prices rise amid U.S. and European debt concerns

Wed, 30 Nov 2011 14:46:05 GMT

Gold prices appreciated on November 22 as investors were spooked by persisting debt problems and the failure of the super committee to arrive at a solution to cut the U.S. deficit. A major factor contributing to the runup in values for these precious metals is exchange-traded notes and exchange-traded funds (ETFs), according to Barron's.

While a meeting of the lawmakers composing the committee showed promise when they met on November 7, hope quickly faded as information critical to progress was disseminated, Reuters reports.

Gold contracts scheduled for December delivery was trading up $21.10 at $1,699.70 on the Comex division of the New York Mercantile Exchange on November 22, Barron's reports. The SPDR Gold Trust, was trading up 1 percent recently. Comex Silver contracts scheduled for December delivery were trading up 91 cents at $32.03 per ounce. Shares of iShares Silver Trust rose 2.2 percent after falling around 2 percent the previous session.

The prices of gold mining stocks could be influenced by this appreciation in the values of the physical metal and firms that extract the commodity in resource-rich areas like Northwestern Mexico might benefit from this increase in prices.

Silver prices appreciated amid global debt problems

Thu, 24 Nov 2011 19:04:07 GMT

Prices for the precious metal silver appreciated on November 22 amid concerns that Europe and the United States will not be able to solve their debt problems.

The prices of silver mining stocks could be influenced by this appreciation in the value of the physical metal and firms that extract the commodity in resource-rich areas like Northwestern Mexico might benefit from this increase in prices.

Copper producer notes demand remains robust

Tue, 22 Nov 2011 17:58:07 GMT

A combination of falling global inventories and increased Asian demand for copper could boost the value of the metal skywards, as an executive for a producer of the commodity told Reuters that robust growth may continue.

This development could push the value of copper mining stocks upwards, especially for companies that extract the metal in resource rich areas like Northwestern Mexico.

Mining companies will likely benefit from a firming of global copper demand despite the initial fears that existed in commodity markets about a worldwide economic slowdown. Countries like China that use significant amounts of the metal are expected to raise imports in November, according to the news source.

"The general view that demand is suffering due to economic concerns does not seem to fit with the inventory trend in the metal exchange warehouses," the mining company said in a report. "Copper production does not meet the requirements."

A decline in the London Metal Exchange inventories could also support this rise in the value for copper mining stocks, as the total tonnage that is held by this organization has dropped. Global stockpiles have declined because of smaller levels of production, Reuters reported.

"The additional quantities registered for delivery add up to about 27,000 tonnes," the mining firm said in the report, according to the news source. "The reduction will therefore continue. There are only about 74,000 tonnes in the SHFE (Shanghai Futures Exchange) warehouses. Copper stocks are thus disappearing all over the place."

Although the use of the metal has risen sharply despite the economic slowdown, the dwindling stockpiles are a result of a convergence of several factors.

"With this combination of factors: good demand in core markets, low stocks and insufficient production, it is not surprising that a possible market shortage is anticipated for 2012," the report noted.

The insufficient production may be a result of several mine strikes that have occurred for the past several months at key sites in Indonesia and Peru.

Freeport-McMoRan had to declare a force majeure on shipments last month because of ongoing strikes at its Grasberg mine in Indonesia. The company was fearful of missing shipments to major importers, as 8,000 workers at the site have protested working conditions and in some cases disrupted and sabotaged operations, according to Bloomberg.

Mining CEO notes silver prices should rise

Thu, 17 Nov 2011 17:31:36 GMT

The price of silver should continue to rise as economic uncertainty around the world persists, the chief executive of a major mining company told Reuters.

The value of silver mining stocks could mirror this rise in price for the physical metal and firms that extract the metal in resource-rich areas like Northwestern Mexico could benefit because of this increase.

The price of silver is currently trading at the $33.82 per troy ounce mark, as the metal has seen fluctuations in the last few weeks due to economic developments in the eurozone, according to CNN.

Although the price of silver has not followed the same path that gold has, it may rise more than the metal due to its industrial use. Both commodities will be heavily influenced by the EU leadership changes and economic developments.

"As long as we see things like the EU (Euro zone currency turmoil) and as long as we run the kind of deficits here - neither of which we see being cleaned up in the short term - those two things will continue to be positive backdrops for gold and silver," the mining executive told Reuters. "Demand is very healthy. The reason we are at $35 an ounce right now is because of investment demand."

Industrial demand may be what sets silver apart from gold in terms of a long-term increase, as the volatile nature of the metal markets isn't felt as much by commodities that hold value for companies that rely on their use for production purposes.

"Over the short term, silver will be more volatile than gold," the executive told Reuters. "It's a smaller market, silver tends to move more percentage-wise than gold. But I think we'll see things continue to move upward as we end the year."

Silver Investing News reported that this type of upward trend could benefit further from the increased use of the metal in solar technology and products.

Reuters reported that these "clean" industrial sectors like solar power are supporting long-term investments in the metal. Water purification technology, cars and GPS systems and similar electronics are all using significant amounts of silver.

According to the news source, this has led to significant mining projects for silver around the world, as suppliers are looking to keep up with the demand.

Copper posts gains due to revival of European fears

Tue, 15 Nov 2011 19:12:30 GMT

Though copper fell for the first time in three days during the initial stages of trading, the metal was able to reverse this drop and post significant gains due to a revival of fears concerning the European economic situation.

The rise in the price of the commodity may mirror the value of copper mining stocks for companies that hold significant deposits of the metal in resource-rich areas like Northwestern Mexico.

According to Reuters, the move back to commodities occurred because of mounting concerns that the EU debt crisis will spread to other markets and disrupt the global economy. This helped push copper higher along with upbeat data from the U.S. in the manufacturing sector.

The news source reported that yields on Italian and Spanish bonds rose to unsustainable levels, placing the focus squarely on France to provide enough support to prevent another collapse.

"Europe is still a very big chunk of the world economy. Can the rest of the world grow satisfactorily if things get worse in Europe? That's what the market is focusing on and rightly so," Stephen Briggs, an analyst for BNP Paribas, told Reuters.

Though the European crisis should have fueled the rise of the metal by a sharper margin, the situation may have deteriorated to a point where manufacturing in that part of the globe could come to a standstill. This might limit the immediate gains for the commodity.

"It's a testament to how bad things are that copper's down here, and we've got a strike at Grasberg and a strike at Cerro Verde, and the market is tightening by the hour," Briggs told Reuters.

MSN News reported that copper will benefit from Asian demand in the near future, a development that could neutralize the European situation. New technology for electric cars that is being produced on this continent has increased the demand for the metal.

"You have all the additional wiring, the brushes within the electrical motor are all copper, and the powering infrastructure all says more copper," Sterling Smith, an analyst for Country Hedging Inc in St Paul, Minnesota, told the news source.

Copper prices may fluctuate due to these factors across the world, but the metal may have support from more areas like Asia and the U.S. than negative contributions from Europe, according to MSN.

Gold prices climb higher following investor move to safe haven commodities

Tue, 15 Nov 2011 18:21:26 GMT

The price of gold rose by a sharp margin as the metal reversed early losses due to a move by traders out of the currency markets and into the safe-haven commodities. This change was sparked by a trend that favored a less risky place to store assets, The Street reported.

According to CNN, the price of gold for December delivery, the most actively traded contract on the New York Mercantile Exchange, rose $2.90 to $1,781.30 an ounce, marking an increase of 0.16 percent for the commodity.

Companies that hold significant deposits of the metal in resource-rich areas like Alaska could see a sharp rise in the value of their gold mining stocks. This increase may mirror that which is recorded by the physical commodity.

The International Business Times reported that the metal could rise to higher levels over the next year, as the rise for gold may be influenced by a negative report from the U.S. concerning interest rates and economic growth.

"We expect gold prices to continue to climb in 2011 given the current low level of US real interest rates," an analyst from Goldman Sachs told the news source. "Further, with our US economics team now forecasting slower US economic growth in 2011 and 2012, we expect US real interest rates to remain lower for longer, supporting higher gold prices through 2012."

The firm lifted its six-month estimate to $1,830 an ounce from an earlier projection at $1,730 an ounce. The 12-month estimates also came in higher, as the estimated $1,860 an ounce was raised to $1,930 an ounce, according to the Times.

The news source reported that turmoil in Europe was also a factor in the rise in value for the metal, as spreads between the bonds of specific European countries have "blown out." This led to an investor rush to the safe-haven commodity market, something that helps gold futures increase in price.

According to The Street, the metal has remained a safe-haven asset for many traders, but the reasons why investors flock to gold remain different.

"Gold is still a safe haven," Jeff Clark, Casey Research's Senior Precious Metals Analyst, told the news source. "But it is a tradable asset and people buy gold for different reasons."

Striking copper miners reject latest offer, supply drops

Thu, 10 Nov 2011 19:10:27 GMT

Workers at Freeport-McMoRan Copper & Gold Inc's Grasberg mine in Indonesia will extend their strike to a third month after rejecting a 35 percent pay rise, according to the Financial Times.

This prolonged strike has already caused the company to reduce its total output of copper, and if the work stoppage continues, other firms will benefit greatly from this lack of production.

Companies that hold significant deposits of the commodity in resource-rich areas like Northwestern Mexico could see the value of their copper mining stocks rise by a significant margin.

According to the Financial Times, about 8,000 workers at the Grasberg mine, which holds the largest recoverable reserves of copper, have been demanding better working conditions and higher wages. The Freeport company is also dealing with these problems at its Cerro Verde mine in Peru, decreasing its total production even more.

Union leaders announced the extension of the strike, and the news source noted that the lack of workers hasn't been the only thing hurting production. A series of events concerning the sabotage of production facilities have also occurred, further limiting the output for the company.

The demands of the workers are far from being met, as the union spokesman Juli Parorrongan noted that Freeport offered $1.35 an hour, well short of the $7.50 an hour that was asked for.

"This is our final number. It won’t be lowered. If the company agrees to pay, then we will stop our strike today," he told the news source.

According to the Times, the Grasberg mine produces 3 percent of the global supplies for copper, making it one of the world's top sites for production. The strike has reduced its output to just 5 percent of normal capacity.

Reuters reported that the move by the unions has been seen by industry experts as a power move, and they have the full support of the local government. An official from the collective group of workers noted that it could continue if the demands were not met.

"This is a safety net. If we fail to find a solution, we can extend the strike and be protected by the law. We have already informed all parties this on Nov. 2," Virgo Solossa told the news source.

Copper prices rise due to steady demand

Thu, 10 Nov 2011 14:35:13 GMT

The price of copper rose by a sharp margin due to shrinking inventories of the metal and steady demand from several areas of the globe. The lingering strike in Indonesia also contributed to the rising value for the commodity, Bloomberg reported.

A rise in the price of the physical metal can give a boost to the value of copper mining stocks, especially for companies that hold large deposits of the commodity in resource-rich areas like Northwestern Mexico.

Stockpiles of the metal that are traced by the London Metal Exchange (LME) dropped for a 14th straight day, and inventories in the largest consumer in the world, China, fell for a 28th straight session. A decline in production was also reported at the Freeport sites, due to the ongoing strike that has paralyzed output in this region, according to the news source.

"The copper fundamentals still are very, very strong," Jim Lennon, global head of commodities research at Macquarie Group Ltd. in London, told Bloomberg. "Supply disruptions still matter in the copper market, so that’s going to influence the copper price."

Copper for three-month delivery rose by 0.3 percent to $7,852 a metric ton on the LME, while the total inventories were shown to decline 0.7 percent on the same index.

The diminished supplies of the metal boosted the prices, but a mining company executive noted that this rise in value would also be helped by continued demand for copper, MarketWatch reported.

According to the news source, the copper-mining company from Mexico reported increased sales, demand and profits, as the output from the firm had to keep up with the growing number of orders.

An analyst from Barclays Capital told Bloomberg that demand for copper, used in pipes and wiring, is set to outpace supply by an estimated 485,000 tons this year. Strikes that have occurred could also push this number higher, a development that would contribute to a higher value for the commodity.

Dow Jones Newswires reported that copper futures were pressured upwards due to the uncertainty that faces the EU leaders because of the recent drama surrounding Italy and Greece.

"I think most pressure came from the uncertainty [over future monetary policy] stemming from the inflation number for October," a Shenzhen-based trading manager at a major domestic house told the news outlet.

Copper prices increase on EU debt debacle, supply worries

Wed, 09 Nov 2011 18:04:04 GMT

The price of copper rose by a significant amount due to a shortage of supplies and the ongoing European fiscal crisis, both of which have given momentum to the metal in the near future, according to the International Business Times.

This rise could lead to a similar increase in the value of copper mining stocks. Companies that hold significant deposits of the metal in resource-rich areas like Northwestern Mexico will benefit greatly from this development.

According to the Times, the optimism in the metal markets has led several analysts to note that a skyrocketing of the price will likely not occur, as the transition will be more of a slow rise for the value of copper.

"The new Greek government is providing some optimism, but going forward, the markets are expected to turn their focus to Italy, which is too big to fail, yet too big to bail," analyst Ong Yiling told Reuters.

The emergence of the Italian financial crisis has led investors to move to commodities over currencies, as these are seen as a safer bet for trading due to the volatility of the eurozone markets.

According to the Times, the pressure that Italian Prime Minister Silvio Berlusconi is currently under to resign may lead investors to put more of their assets into commodities than they already have. The situation in Italy has given eurozone leaders little confidence that a short-term solution is present.

"Investors will look for trading cues from today's crunch vote on Italy's finances in the parliament, where some of the opposition members are preparing a motion of no-confidence against Prime Minister Berlusconi this week," Ong Yiling told Reuters.

The news source reported that the European financial crisis isn't the only ongoing situation that has propelled the metal upwards, as the strikes at Freeport McMoRan's Grasburg copper mine in Indonesia have dented the supply of the commodity. This work stoppage could continue for weeks though, shifting the focus back to the EU debt debacle for short-term trading.

"Looking at fundamentals the strikes at Grasberg and Cerro Verde are ongoing but there does not seem to be any change or improvement so the focus will be on Europe," Stephen Briggs, analyst for BNP Paribas, told Reuters.

Silver poised to make significant gains

Tue, 08 Nov 2011 17:56:51 GMT

Precious metal experts have predicted a significant rise in the price of silver in the coming weeks due to the state of the eurozone economy and a move by traders into commodities other than gold, Seeking Alpha reported.

This feeling in the industry could lead to a rise in the value of silver mining stocks, especially for companies that hold large deposits of the metal in resource-rich areas like Northwestern Mexico.

The value of silver mining stocks could easily mirror the price of the metal itself, as physical buying may increase because of the European developments.

According to the news source, silver has reached new highs this year, but after a period of corrections that were spurred by a move out of the commodity markets by many investors, the price of the metal is lower than what analysts believe it should be.

This development will likely lead to large purchases of the metal as an alternative to currencies, and Seeking Alpha reported that silver could reach levels well above the $50 an ounce mark in the coming months.

The latest figures reveal that the practical applications for the metal could spur physical buying.

According to the news source, more than 487 million ounces of silver were used for industrial applications in 2010, a figure that is predicted to increase once the fiscal 2011 year comes to an end and data is gathered.

MarketWatch reported that silver has appreciated nine times as much as the Dow Industrial Average since 2001, and this significant rise in value could continue due to the massive amount of physical buying that is expected in the coming months.

According to the news source, silver is currently undervalued, especially against gold, and this could be corrected due to the current short supply of the metal, which is outlined in an examination of the December 2015 futures for the two commodities.

These futures show that the price of silver is at the same level for both 2011 and 2015, meaning that investors could capitalize on the current low prices and a fresh round of buying is likely.

Gold prices are much higher for the later futures and this could lead to a correction in the markets, MarketWatch reported.

Gold prices pop as eurozone crisis continues to boost metals

Mon, 07 Nov 2011 19:03:02 GMT

Gold futures are trading higher and have reached a six-week apex as the price of metals is increasing by significant amounts in trading due to the current turmoil that has engulfed the European economies due to the Greek financial crisis, Kitco News reported.

"Gold is resuming its role as a safe-haven investment because of the problems in Europe," Donald Selkin, the chief market strategist at National Securities Corp. in New York, told Bloomberg. "It has also found good support from physical purchase. We saw investors return at the $1,600 level."

Companies that mine for the metal in deposit-rich areas like British Columbia may see a sharp rise in the value of their gold mining stocks. Safe-haven demand for the commodity has returned, and this development will lead to continued buying from investors.

The price of gold for December delivery on the Comex division of the New York Mercantile Exchange rose $23.00 to $1,779.00 an ounce, a significant increase for the metal in daily trading, according to the news outlet.

Analysts have noted that the metal will rise by a sharp margin in the coming days due to its return to safe-haven investment status. This market will be ripe with new traders looking for a place to put assets during the ongoing economic crisis in Europe, Kitco News reported.

Italy's parliament will hold a vote on the 2010 budget in a move that could undermine the power that Prime Minister Silvio Berlusconi currently has. Greek Prime Minister George Papandreou agreed to step down due to similar developments that occurred in his country, according to Bloomberg.

"The market appears to be in no-man’s land and at the mercy of Europe’s newsflow," Alan Gayle, a senior strategist at RidgeWorth Capital Management in Richmond, Virginia, told the news outlet. "The Europeans are doing some heavy lifting. The leadership has a good understanding of what needs to be done and they’ve set a goal for themselves. They are now going through the sausage- making process of crafting a solution."

Bloomberg reported that the metal could rise to more than $1,950 an ounce by the end of first quarter according to the median estimates of a panel of experts.

Copper prices rise on scrapping of Greek referendum, U.S. jobs revision

Fri, 04 Nov 2011 16:16:00 GMT

Copper futures spiked following a heavily revised U.S. jobs report and a scrapping of the EU referendum for Greece, as the two developments pushed the metal higher, Dow Jones Newswires reported.

The most actively traded contract for the metal, for December delivery, rose $0.60 to $3.59 a pound, marking an increase of 0.2 for the commodity, according to the news outlet.

This combination of factors from both sides of the Atlantic could push the metal higher, positive news for companies that hold significant deposits of the commodity in resource-rich areas like Northwestern Mexico. Copper mining stocks could increase in value by a sharp margin over the next several weeks.

Although the numbers for jobs added in the U.S. during October fell short of the initial forecasts, August and September data were adjusted upward. This is good news for copper, as the value of the metal increases if companies have more expendable income for things that require the commodity like laptops, refrigerators and cars, Dow Jones reported.

Reuters noted that the U.S. jobs data was not the only factor that helped the metal move up, as the Greeks voted to drop plans to hold a referendum on a European Union bailout.

According to the news source, Greek Prime Minister George Papandreou faced a cliff-hanger vote of confidence following a backtrack by the leader on his "shock-call" for a referendum on the bailout funds.

"The market is purely sentiment-driven at the moment; risk sentiment keeps swinging back and forward but volumes are pretty low," Andrey Kryuchenkov, an analyst for VTB Capital, told Reuters. "People are hoping that...Greece will do whatever the EU proposes and that the debt crisis won't spread."

The metal was also affected by the role that the European Central Bank has played in the ongoing debt crisis, as the institution's decision to cut interest rates supported the sentiment in the commodity markets.

"The surprise rate cut by the ECB on Thursday is a two-edged sword for industrial metals," analysts from Credit Suisse told the news source. "On the one hand, lower rates mean lower financing costs for industrial metals. On the other hand, it also signals that the economic slowdown is probably not over yet."

Analyst notes silver "Could Easily See $75"

Thu, 03 Nov 2011 17:03:17 GMT

The price of silver may rocket to significantly higher levels in the coming months due to a combination of factors that will remain supportive for the precious metal market, an analyst from Goldmoney told Beacon Equity.

This prediction could hold true, a development that would lead to a sharp rise in the value of silver mining stocks for companies that hold significant deposits of the metal in resource-rich areas like Northwestern Mexico.

James Turk, founder of Goldmoney and metals analyst, told the news source that silver could reach between $60 to $75 an ounce "easily," but noted that a time period for this target range would be hard to identify.

Turk told Beacon Equity that a technical breakout of the silver price from its consolidation may take place sometime in November, a development that he feels will create a bull market for the precious metal.

"Silver is forming a beautiful, long-term, flag consolidation pattern," Turk told King World News. "The flagpole started in 2010 at $18 and peaked at $49 earlier this year. We are now in the flag and we can expect a breakout, I think, within the next few weeks."

Seeking Alpha reported that a historical look at the fate of silver has led to many traders seeing a sharp rise in the value of the metal in the near future. Though the commodity has dropped slightly from the high levels that were reached earlier in the year, it is still up 83 percent from the second period of quantitative easing (QE) enacted by the Federal Reserve.

According to the news source, the Fed is looking to enact a third period of QE, and this development would push silver to near-record levels due to the historic tracks for the commodity.

Though this rise has been predicted by many industry experts, the metal may not take off until a certain point is reached. The levels where this popping in price would occur is up for debate among industry experts.

"The shakeout over the past six months has put a lot of people on the sidelines. I don’t expect that money to come back into the market until silver goes back above $43," Turk told Beacon Equity. "When silver takes out $43 it should rocket just like it did earlier this year when it nearly doubled in price."

Gold prices rise due to renewal of Greek worries within eurozone

Thu, 03 Nov 2011 17:03:08 GMT

The price of gold rose by a sharp margin due to renewed concern over the state of the eurozone following the European Central Bank's interest-rate cut, a move that boosted the metal's appeal as a safe-haven or alternative asset, The Wall Street Journal reported.

According to the newspaper, the most actively traded gold contract for December delivery rose $30.40 to $1,760 an ounce, marking a rise of 1.7 percent for the commodity.

"Any time you have a cut in rates, it makes gold a great alternative [asset]" George Gero, vice president and metals strategist with RBC Capital Markets, told the Journal.

This sharp rise could benefit companies that hold significant deposits of the metal in resource-rich areas like Alaska. Gold mining stocks for these firms may skyrocket if physical buying continues.

The move to lower interest rates came as a surprise to many market experts, as the European Central Bank was likely trying to stimulate spending on the continent.

Lower interest rates make gold, which has no guaranteed yield, more attractive compared with interest-bearing investments. These reductions also raise the prospect that easy-credit policies will increase inflation down the line and devalue paper currencies, something that will give a boost to the metal markets, according to the newspaper.

Gold prices rose partly due to the fact that Greece may not proceed with the referendum on the country's bailout, a measure that was proposed by Prime Minister George Papandreou. Leaders from France and Germany warned the nation that the internationally provided financial backdrop would be suspended if action wasn't taken, the Journal reported.

The Street reported that this lack of unity within the EU would have a positive effect on the value of gold in the coming months. A sharper rise could occur because of the recent developments.

"Given the scale of the European and global debt crisis, the slowing U.S. and global economy and heightened macroeconomic, monetary and systemic risk -- a move back to $1,800 seems likely -- possibly in November," Mark O'Byrne, CEO of GoldCorp, a bullion dealer, told the news source.

Fluctuations may occur on a daily basis for the metal if the EU situation remains volatile, but the long-term impact on precious metals will likely be positive, according to The Street.

Gold reverses early losses, soars back above $1,700 mark

Tue, 01 Nov 2011 17:44:23 GMT

Gold futures initially slumped during trading, but the metal was able to reverse the losses to recover to previous levels due to the increase amount of bargain hunting that occurred following the initial drop, Dow Jones reported.

The drop occurred due to significant economic news from the EU and the U.S., but the slight losses that were incurred for the metal show that its long-term potential is positive.

This development could help gold mining stocks for companies in deposit-rich areas like British Columbia, as the upward potential for the metal was exposed due to the lack of movement following positive economic news.

"It's very encouraging that we've bounced back above $1,700," Charles Nedoss, broker and futures analyst with Olympus Futures, told Dow Jones. "We're back where we've opened ... and the dollar strength looks like it's starting to abate."

Though the price of gold had dropped below the $1,700 an ounce mark initially during the commodities slide, the metal finished much higher following the bargain buying.

CNN reported that the metal for December delivery, the most actively traded contract, rose back up $9.20 by the end of trading to $1,721.00 an ounce.

The downward pressure on the metal came from the slight revival of the U.S. dollar, which benefited from eurozone concerns. The European assets were dented by the fact that Greek Prime Minister George Papandreou decided to call a popular vote on the agreed bailout within his country, Reuters reported.

Though the metal is expected to rise in long-term trading, the immediate future could remain uncertain due to the political and economic events that are taking place in Western countries, according to the news source.

"From here, as we are in a seasonally strong period, the downside (in gold) should be supported. But the upside very much rests with the safe-haven interest," Suki Cooper, an analyst for Barclays Capital, told Reuters. "We still do expect that demand to materialise as Q4 progresses but in the near-term we would expect prices to be a bit choppy."

The continuance of the Greek problem could lead to volatility within the metals market, and any developments could have a broad impact on commodities and currencies, according to the news source.

Silver may be safer long-term bet for investors

Mon, 31 Oct 2011 16:51:40 GMT

Though many investors are leaning towards gold as a safe haven asset, several industry experts have noted that silver may be the better choice for metals, according to Wall Street Daily.

This prediction could help companies that have a hand in deposit-rich areas like Northwestern Mexico, as the silver mining stocks could mirror the interest in the commodity.

The news source reported that a significant number of investors will rush to the gold markets, but silver could represent the better move due to the variety of industrial applications for the commodity.

According to Wall Street Daily, investors have been scared by the recent volatility of gold and may begin to favor silver as a safe-haven asset.

Silver is the only metal that has outperformed gold by a margin of more than two-to-one over the past decade, and has held firm when the commodity has been in periods of sharp decline, the news source reported.

Looking at the historical highs and lows for silver and gold can also shed some light on the potential futures for the metals. According to the news source, the commodity market has not favored one over the other, but silver has bottomed out less times and has retained a higher value.

Wall Street Daily reported that both metals are set to rise by significant amounts in the near future due to the economic situation that exists, but silver is currently cheaper - in terms of a long-term price assessment - and would produce larger gains for investors.

Commodity Online reported that several analysts from Barclays have predicted a significant rise in the value of silver, as the metal jumped above the $35 an ounce point during trading after posting gains of 1 percent.

According to the news source, silver output from the largest silver mine in the world, Fresnillo, was down 13 percent for the third quarter and more than 7 percent for the year, a development that could push the metal up further.

Barclays also noted that the current economic situation that exists in Europe and the U.S. could allow for an extended rally for silver, as the metal isn't likely to dip from high numbers at any point in the near future, Commodity Online reported.

Copper futures rise to five-week high

Mon, 31 Oct 2011 15:18:47 GMT

Copper futures rose to a five-week high as the value of the metal increased due to the apparent resolution of the EU debt crisis and a lowered supply because of mining strikes, Dow Jones reported.

Companies that hold significant deposits of the metal in resource-rich areas like northwestern Mexico could see a sharp rise in the value of their copper mining stocks.

According to the news source, the most actively traded copper contract, for December delivery, rose $0.01 to $3.70 a pound, marking an increase of 0.4 percent for the commodity.

Copper futures surged along with other commodities that act as volatile assets, as the euro-zone leaders came together to produce an outline to a plan that will help to ease Greece's debt burden, boost the currency union's bailout fund and inject cash into the banking system, Dow Jones reported.

"Given that the market was starting to price in a deep recession before, it does make sense that we are seeing a rally," Bart Melek, analyst for TD Securities, told the news source.

The Financial Post reported that the metal was able to post a 14 percent rally this week due to the economic developments and the ongoing strikes at several key mines. Hesitation among investors could help copper remain at a high price for some time, as the EU situation is not seen as a final resolution at this juncture.

"All that can be said about the EU bailout is that market expectations were very low and the politicians beat those expectations," Justin Lennon, analyst with Mitsui Bussan in New York, told the news source. "The plan is a bit short on details and economically, the EU is still contracting."

The sharp rise of the metal has produced some investors who feel that a correction may occur in the near future, but this sentiment is reliant on factors that are in the control of the EU leaders.

"I think copper is going too far too fast at this point," Bill O’Neill, partner of LOGIC Advisors in Upper Saddle River, New Jersey, told the Post. "We are bullish long-term on copper but not to have a rally of this magnitude so quickly."

The news source reported that a drop or rise in Chinese demand could influence the next several weeks for the metal.

Gold prices shoot upward on new European debt plan

Fri, 28 Oct 2011 17:14:12 GMT

The price of gold rose by a significant margin as European leaders finally came together to decide on a plan to lift the EU out of a two-year debt crisis, The Street reported.

Gold for December delivery, the most actively traded contract, rose $24.20 to $1,747.40 an ounce on the Comex division of the New York Mercantile Exchange, according to the news outlet.

The price of gold mining stocks may mirror the rise in value for the physical metal and its futures. Companies and firms that have significant deposits of the mineral in resource-rich areas like British Columbia could benefit from this change.

"We still see further upward potential for gold," analysts for Commerzbank told The Street, "as the crisis is not yet fully resolved and there are still substantial risks."

Although the details of the deal are still being worked out by the EU leaders, Greece could recover from earlier losses if the bondholders are willing to take a voluntary 50 percent haircut on the bonds, according to the news source.

The news came during a period of significant activity in the metals market, as gold reversed losses that were incurred in September to post a 7 percent rise in the last four trading sessions.

"Gold over $1,700 is positive," George Gero, senior vice president at RBC Capital Markets, told the news source, "[The metal] now needs confirmation for higher open interest, higher moving averages and higher closing prices."

Kitco News reported that the lower U.S. dollar index also contributed to the rise in value for commodities, specifically gold, as the metal has secured its place back in the safe-haven asset arena.

The low value of the greenback will help the metal remain at a high level, as the dollar provides the underlying bullish factor for gold during times of economic volatility.

The Wall Street Journal reported that the combination of the rising euro and the declining dollar could help the metal return to the high levels that it was at prior to the September drop that occurred.

"What happened in Europe greatly boosted investor confidence, so we saw rallies across the board today," Shanghai Cifco Futures analyst Fang Junfeng told the newspaper.

Silver prices rise on physical buying, dismal economic situation

Fri, 28 Oct 2011 13:24:33 GMT

The current state of the global economy and the lack of optimism that exists regarding the EU debt resolution are factors that have pushed the metals market skyward, leading to a resurgence of silver, according to Beacon Equity Research.

A rise in physical buying of the commodity has also contributed to the long-term value of the metal, and the price could reflect this upward trend in the coming months.

Silver mining stocks of companies could benefit from these developments, as firms that hold significant deposits in resource-rich areas are likely to make gains.

Beacon Equity Research reported that the metal could benefit from a majority of the investors in the market taking long-term positions on silver. The slight sell-off of the metal that has occurred is over, as traders moved back to commodities because of the dire economic situation in Europe.

"I’m looking right now at a chart of 20-month and 40-month moving averages of gold [said can be said of silver]," Richard Russel, an industry analyst said in a roundtable discussion. "May of 2002 . . . the 20-month moving average finally moved above the 40-month moving average."

According to the news source, silver may also benefit from the number of investors who have favored gold as a safe-haven asset in the past, as these traders could change where they place their money due to the rush to metals that followed the EU economic summit.

Silver futures outperformed the yellow metal following the EU summit, as the commodity rose $1.54 to $34.85 an ounce, marking an increase of 4.6 percent. This rise was also due to the decline that occurred for the U.S. dollar, the International Business Times reported.

Commodity Online reported that several analysts within the industry projected that silver could reach levels higher than $40 an ounce by the end of 2012.

"The deteriorating global economic outlook has had repercussions on the price of silver," an analyst from Commerzbank told the news source. "The silver price is likely to recover from its current weakness and resume its upward trend in 2012."

Physical demand for silver has increased alongside the rise of purchases for gold, as central banks and individual traders have flooded the metals market, according to Commodity Online.

Value of copper increases due to EU summit potential, mine strike

Wed, 26 Oct 2011 18:17:00 GMT

The value of copper increased by a significant margin following the first signs of positive news out of Europe and a lack of supply due to a mine strike at a site in Indonesia, according to Reuters.

A lack of supply and increased prices could help copper mining stocks increase for companies that have significant operations in places like Northwestern Mexico. Further developments in either of these areas may contribute to a rise in the value of the commodity.

Leaders from EU assembled at a summit in an effort to address the ongoing debt crisis on the continent, a development which pushed both the collective currency and the commodity markets higher.

"There are very high hopes regarding the outcome of today's EU summit, that is the main driver today, as it has been over the last three trading days," Daniel Briesemann, an analyst for Commerzbank, told Reuters.

The news source reported that optimism has surrounded the meeting of the EU leaders since the German and French heads of state made a significant effort to solve the debt problem in a timely and efficient manner.

The price of copper for December contract rose by $0.12 to $3.54 a pound following the rise in optimism, marking an increase of 3.44 percent for the commodity, CNN reported.

Along with the increased optimism surrounded the European continent, continued unrest at the Freeport copper mine in Indonesia helped to support a gain in the value of the metal. The site may not be able to deliver as much of the commodity as some of its contracts dictate, something that other companies may benefit from, according to Reuters.

"This comes at a time when people are starting to feel more confident about the outlook for copper and about a pickup on the demand side," Gavin Wendt, an analyst from MineLife, told the news source.

Dow Jones Newswires reported that the factors supporting supply-side developments for copper have been positive over the past several months, due in part to strikes, but also because of an increase in demand from Asia.

According to the news outlet, a lack of a potential date for the end of the strike could help to limit supplies further, something that may provide a boost to copper mining stocks and the value of the precious metal in the near future.

Gold prices reach one-month high, return to safe-haven status

Wed, 26 Oct 2011 16:47:21 GMT

The price of gold rallied to one-month highs as the metal extended its longest stretch of gains in over two months as investors and traders rushed to safe-haven markets ahead of the EU summit, Reuters reported.

Companies that have significant deposits of the metal in resource-rich areas like Alaska could see a sharp rise in the value of their gold mining stocks over the next several weeks.

Gold rose above the $1,700 an ounce mark for the first time in a month, according to Reuters.

Increased movement to the metals market has pushed the value of gold up $22.60 to as high as $1,723.00 an ounce, marking an increase of 1.33 percent for the commodity, CNN reported.

Expectations of a comprehensive solution coming from the second European Union summit in four days have dwindled, reversing the optimism that had originally surrounded the conference. Officials from the EU countries now have to deal with the issue of the rescue fund and the potential losses for private bondholders who are taking on the Greek debt, Reuters reported.

"Maybe (the Europeans) come up with some kind of guidelines, but I'd be very surprised if they make a concrete decision," Afshin Nabavi, head of trading at MKS Finance, told the news source. "So will the price of gold fluctuate? Of course. The higher we go, the choppier it gets, but I feel like at least from what we've seen so far today, $1,700 tends to be a good base."

Bloomberg reported that the rise of the metal could continue until a resolution is reached, a development that may not occur for several weeks. U.S. Treasury Secretary Timothy F. Geithner called the situation a "catastrophic risk" to the global markets.

This lack of confidence in the EU leaders to solve the problem reversed the original thoughts surrounding the summit. Gold's rise continued throughout the developments.

"The size of the debt issues are unlikely to go away regardless of what policy makers decide," analysts at TheBullionDesk.com told Bloomberg. "Given this uncertainty we are not at all surprised gold is attracting fresh safe-haven buying."

The EU developments also led to the largest two-day rise in global holdings of gold in exchange-traded products, according to the news source.

Goldman Sachs predicts rise in demand for copper

Wed, 26 Oct 2011 11:49:18 GMT

Analysts from Goldman Sachs have predicted the rise in value for copper as global economic growth that has been led by emerging markets remains at a high enough level to drive an expansion for the raw-materials demand, according to Bloomberg.

"We remain constructive on commodities," Allison Nathan, an analyst for Goldman, told the news source.

The analyst noted that the emerging-markets demand for key commodities have held up well, and there haven't been signs that the economic woes that are prevalent in developed nations will be spreading to the rising economies.

Goldman had been correct in their prediction for the metal, as they remained bullish on the commodity in May before the prices rebounded and rose sharply, according to Bloomberg.

The Goldman report also noted that copper may climb to $11,000 per metric ton in the near future due to the emerging-market economies, reported the news outlet.

Copper is currently trading up $0.06 at $3.96 a pound, building on the 13.85 percent rise for the year, according to CNN.

The value of copper mining stocks may increase significantly during this time, especially in metal-rich areas like Western Mexico.

Chinese copper mine fires 1,000 striking workers

Fri, 21 Oct 2011 13:42:28 GMT

The Chinese-owned NFCA Mining fired at least 1,000 workers at Chambishi Copper Mines due to their participation in a strike over the wages that were being paid to them at the site, The Wall Street Journal reported.

This development could limit the production at this site, something that may help copper mining stocks for companies that hold significant deposits in resource-rich areas like Northwestern Mexico.

According to the newspaper, the firing of these individuals signals that the tensions between the management and the workers is still unresolved several years after a violent end to a dispute that left several dead.

The management at the mining company sent a memo to the workers telling these individuals that they were fired for failing to adhere to an order to end the strike. This development had hurt the two sides' chances of meeting for labor negotiations, according to an official from the company.

"Management has given the dismissed miners up to 48 hours to appeal against the suspension," the official told the Journal.

Labor relations have been shaky at this site since 2006, as Chinese managers shot six miners during a wage protest. Last year alone, there were at least 13 workers who were shot by management at the firm, according to the newspaper.

The Daily Nation reported that officials from the mine are trying to provide compensation for days that the workers were striking for, but the recent developments could hurt this attempt. The protests were sparked by a move by the newly elected President of Zambia Michael Sata, as he proposed an increase in the salary for these employees.

According to the Journal, the Zambian government is requesting that the Chinese firm reinstates the fired workers, as they feel that it would hurt both production at the mines and relations between the two countries if they were to permanently terminate these individuals.

Sikufela Mundia, president of National Union of Miners and Allied Workers, confirmed the actions taken by the Chinese companies and noted that more negotiations would be necessary in order to prevent further strikes.

"I have sent my general secretary there to find out exactly what is happening," the official noted in a statement.

The miners disrupted the output for the second time in a month, hurting the production at the 65,000-metric-tons-per-year mine, according to the Journal.

Physical demand for gold increases for India during festival season

Wed, 19 Oct 2011 17:41:15 GMT

The upcoming festival season in India may have a significant impact on the value of gold, as the celebrations that occur will likely increase the demand for the yellow metal, The Wall Street Journal reported.

The value of gold mining stocks for companies that have significant deposits of the metal in resource-rich areas like Alaska could mirror the rise in demand from the Asian continent.

Gold demand will be strong in the October-to-December quarter in India - the world's largest bullion buyer - despite the high level of inflation that currently exists.

"We think that demand from India will be resilient to higher gold prices for the remainder of the year on the back of seasonality and increased investment interest," Edel Tully, strategist of UBS, the biggest supplier of the metal to India, told the Economic Times.

According to the news source, gold prices in India have gained 29 percent since the start of the year, compared with stock market gains of only 15 percent.

The Economic Times reported that the Dhanteras and Diwali festivals along with the wedding season in the country could push these prices higher. Indian gold imports rose 47 percent in the last quarter of 2010.

"My sense is that demand will be 30-40 per cent higher than the fourth quarter of 2010. Investment demand is already on a peak," Gnanasekar Thiagarajan, director with Mumbai-based research firm Commtrendz, told the news source.

The support from India and festival season purchases will help to push the global gold prices upwards, as the commodity entered into the 11th year of gains, according to the Times.

A slight dip in the price of the metal has also presented Indian buyers with a chance to purchase large amounts of the commodity. This 11 percent drop has prompted initial investments within India and this trend could continue, Mineweb reported.

"We expect gold prices to shoot up to $660 to $670 per 10 gram by Diwali due to local demand,'' Prithviraj Kothari, president of the Bombay Bullion Association, told the news source.

According to the Journal, the festival season may push imports of the metal to historic levels in India this year, as analysts have projected a demand for up to 1,000 tons in 2011.

Strong Asian demand boosts value of silver

Wed, 19 Oct 2011 13:52:08 GMT

The demand to buy silver in physical form has remained strong in Asia due to the upcoming festival and marriage seasons in India, according to Commodity Online.

Silver mining stocks could benefit from this rise in demand, especially for companies that hold significant resources in deposit-rich areas like Northwestern Mexico.

This rise in physical demand could also lead to an evening of the metals market, as gold and silver will both see a slight rise in the associated values for these commodities, Commodity Online reported.

Gold and silver scrap sales have remained periodic due to the high demand and relatively low supply of the metals, according to the news source.

Commodity Online reported that silver prices could also benefit from the uncertainty that remains in the European and American markets. A drop in the value of the dollar and euro could push the commodity markets higher.

Silver for December delivery is trading up $0.05 to $31.86 an ounce, marking an increase of 0.14 percent for the commodity, according to CNN.

Copper output decline reported by several key firms

Wed, 19 Oct 2011 13:51:11 GMT

Several copper mining firms around the world have seen their total production and exports drop due to a range of factors.

This development could lead to a sharp rise in the value of copper mining stocks for companies who are located in deposit-rich areas.

MarketWatch reported that Anglo-Swiss miner Xstrata recently announced that they were downgrading their copper output, as they had suffered from lower ore grades, blizzard conditions and a round of repairs to equipment that had severely affected the performance of their mines.

The production at the Xstrata mine was 4 percent lower than the same period in 2010, as the 223,606 tons were much less than the original projections.

According to the news source, exports from the Collahuasi site in Chile were impacted by lower grades of resources, blizzard conditions in July and 18 days of repair to the conveyor belt in September. These developments hurt the total production that was recorded at the site and limited the feed to the concentrator.

Xstrata's mine in Peru, located at Antamina, saw the processing of higher ores but at lower levels. The copper cathode output also decreased, as a 4.5 percent year-on-year drop was recorded. The site produced only 163,683 tons, MarketWatch reported.

A previous article from MarketWatch detailed the decline of total output from Peru, the world's second-largest producer of copper. The exports of metal from sites in the South American country have already dropped 3 percent on a year-to-year comparison.

Industry analysts have noted the potential for Peru to increase the total output for copper mining in the country, but this may be held back by things that are usually out of the control of the associated companies.

"It is extremely unlikely that Peru will add the 3 million metric tons to 4 million metric tons of copper by 2020 that is theoretically possible," an analyst from Citigroup said in a letter to the news source. "Local community opposition to several major mining projects shows no signs of abating."

Mining strikes and debates over the use of water for mining within the country have inhibited the growth of several sites in Peru, and these developments are not likely to disappear at any point in the near future.

Freeport halts work on Indonesian mine, stoppage hurts copper supply

Mon, 17 Oct 2011 17:06:35 GMT

The Freeport McMorRan Copper & Gold Inc. stopped operations at the company's large mine in Indonesia due to safety concerns following actions by striking miners, The Wall Street Journal reported.

"Production is completely cut because the main pipe has been cut and because of security concerns," a representative for the Freeport mine said in a conference.

This development could have an effect on the total supply of metals, something that may contribute to a rise in the value of copper mining stocks for companies in deposit-rich areas like Mexico.

Since the Freeport mine is the world's second largest copper producer there could be a long-term impact if operations remain stagnant. Reuters reported that there is no immediate resolution that may be reached.

Workers at the mine began a strike more than a month ago, but this development came about following the death of a miner and injuries to 10 others following a clash with police during the protests, according to the Journal.

Supplies could be hurt by the increased tension that exists between miners and company executives.

"Logistics needed for production and activities in the highlands have been held at the port," the spokesman for Freeport told Reuters.

Gold nears $1,700 level on weak U.S. dollar

Thu, 13 Oct 2011 17:58:31 GMT

The price of gold climbed toward the $1,700 per ounce level, as worries in markets in the U.S. and Europe pushed the value of the metal higher, the International Business Times reported.

Gold prices recovered from slight losses due to the ongoing European situation, along with help from a weakened U.S. dollar. The combination of these factors pushed the metal up by 1 percent, according to the news source.

"Pressure continues to build for a European policy response however, so we cannot rule out a sudden updraft in the gold price on the back of new monetary policy initiatives in Europe," Martin Murelbeeld, chief economist for Dundee Wealth Economics, told the Times. "Leaders seem to agree that something needs to be done but, as of yet, the ‘bazooka’ is nowhere to be seen."

According to FX Street, developments in Slovakia also contributed to the chaos in the eurozone, as the government in this country was targeted by leftist opposition.

Gold mining stocks could rise higher due to the recent developments, and companies with significant deposits in areas like Mexico could see a sharp rise in the value of these assets.

China copper imports reach 16-month high

Thu, 13 Oct 2011 17:57:12 GMT

Copper imports by China, the world's biggest consumer, rose to the highest level in 16 months, as lower prices and a reduced domestic stockpile led traders to place a significant number of orders, Bloomberg reported.

Companies that have significant deposits of the metal in areas like Northwestern Mexico could see a sharp rise in the value of copper mining stocks due to this emerging trend.

Inbound shipments of the metal rose 12 percent for the country, as China imported more than 380,000 tons of copper for the month of September. This marked the highest level that has been reached since May 2010, according to the news source.

"Arbitrage buying should have increased a tad as a result of favorable price differentials between Shanghai and London," Peng Qiang, an analyst at Cofco Futures Co., told Bloomberg. "October imports should be even higher."

MarketWatch reported that Chinese commodity buyers were purchasing the metal at lower prices, but the demand was influenced more by the need to build up stockpiles due to a recent drop in supplies.

The safe-haven case for gold

Thu, 13 Oct 2011 15:00:19 GMT

Gold prices have fluctuated over the past several months, as global economic developments have pushed the value of the metal up and down because of investor uncertainty and risky trading. While some economists have noted that the commodity is a risky bet, an argument for its safe-haven status has emerged.

Capital Economics economist Julian Jessop thinks that gold is still a safe haven metal, and will continue to be in the future, according to The Wall Street Journal.

"It does not make much sense to argue that the price of a safe haven can only ever rise," Jessop told the newspaper.

The economist went on to say that gold has survived the worst of the economic crisis, and has been able to retain a higher value than most of the commodities.

"What’s more, the fundamentals that underpin gold’s status as a safe haven have not changed," Jessop said to the Journal. "In particular, the precious metal’s value is not dependent on the creditworthiness of any government or financial institution."

Jessop noted that any decline in the value of gold has shown the risky nature of the U.S. dollar and other commodities, as these assets have reflected a much sharper change in price than the precious metals market.

According to the Journal, the forecast for gold has still targeted the $2,000 an ounce mark, despite the recent fluctuations in value.

The price of gold is currently approaching the $1,700 mark, as the metal rose $24.00 to $1,685.00 an ounce in the most recent day of trading. The safe-haven nature of the commodity persisted, as a lower dollar index contributed to the increase, Kitco News reported.

"We feel like we're one announcement away from reigniting a gold rally," Bob Haber, chief executive of Haber Trilix, told The Street. The CEO added that if the Federal Reserve announces another stimulus, "That is the last barrier for gold to come out of this holding pattern."

Haber remained bullish on gold, and he noted that despite choppy price fluctuations in the near future, the long-term value of the metal would rise by a sharp margin, according to the news source.

Gold mining stocks for companies in resource-rich areas like Alaska could rise by a significant amount if the metal maintains its safe haven status, as demand will likely increase.

Silver demand may rise on relatively low prices

Thu, 13 Oct 2011 12:49:02 GMT

The relatively low price that silver was reached in the past several months has led economists to believe that the metal is due for a fresh round of investments from traders, according to Barron's.

Margins for the metal could be lowered, and this could lead the price down slightly, despite the recent gains that have been posted by the commodity. This reduction could lead to an increase in buyer demand for silver, the news source reported.

"The events of the last two days should be beneficial as they suggest that economic demand for metals will improve," Tom Pawlicki, an analyst for MF Global, told Barron's.

Mineweb reported that the price of silver had risen a dollar to $32.80 an ounce, and the metal could increase further if any developments came out of the eurozone following talks among the EU leaders.

The news source reported that the crisis could spread to larger countries, helping to push the metal up further.

Companies with significant deposits of the metal in resource-rich areas like Northwestern Mexico could see a sharp rise in the value of their silver mining stocks.

Latest mining stirke may limit copper production

Wed, 12 Oct 2011 10:56:03 GMT

Workers at the Freeport copper mine in Indonesia has been on strike for several days, but recent developments may lead to an escalation of the demonstrations, according to Reuters.

A worker was killed during a recent clash between police and protesting employees, and this development could elongate the strike, which has already hurt the production levels for the company, the news source reported.

"The news of the conflict at Grasberg is a timely reminder that supply considerations remain a major source of upside price risk," David Thurtell, an analyst for Citigroup, told Reuters.

The striking workers could continue to protest their wages due to this recent development, as the initial offers that were put forth by Freeport were rejected by the local unions, according to the Jarkarta Globe.

"They wanted to go there to close down Freeport, because up until now, the management has refused to talk," a local source told the newspaper.

The strike could affect the supply of the metal around the world. Companies that have deposits in resource-rich areas like Mexico may benefit from the gap in demand that is caused by these developments. Copper mining stocks could increase in value by a sharp margin.

Copper demand continues to outpace supply

Tue, 11 Oct 2011 15:38:04 GMT

Copper retains value even in a period of economic uncertainty, as the metal has practical applications that help to support demand. These reasons are helping the commodity remain popular among investors, according to The Telegraph.

The International Copper Study Group (ICSG) recently released its assessment for the future of the metal, and studied the potential growth that could occur, reported the news outlet.

According to the preliminary data from ICSG, the global growth for the commodity is expected to exceed the production of the metal, with an estimated deficit of up to 200,000 metric tons.

Bloomberg reported that the current prices that the metal is posting are also positive, as copper rose for a fourth straight day in trading on the New York exchange.

Several strikes in copper mines around the world could also push the metal higher.

"The strike at Grasberg seems to be escalating," an analyst from Commerzbank AG said in a report. "Consequently, production shortages are increasingly likely, which is likely to intensify the already tight supply situation in the global copper market."

Companies that hold significant deposits of the commodity in areas like Northwestern Mexico could see a sharp rise in copper mining stocks because of these developments.

Increased silver demand pushes price higher

Tue, 11 Oct 2011 15:26:26 GMT

The commodity markets have weathered the global economic crisis despite fluctuations in the value of the specific resources. While the price has remained volatile, the demand for specific metals has bolstered their individual futures, according to Seeking Alpha.

Though the fluctuating prices has led traders to be more cautious in the markets, silver has retained its value due to the physical demand for the resource. An increase in the amount of paper money that is printed could work to bolster this commodity, the news source reported.

The industrial uses for the metal can also lead to its strengthening in the coming months, as advances in solar technology have helped to push the demand for silver even higher.

According to The Hindu Business Line, the medium term outlook for the metal is bullish, and even if the price of silver is to drop slightly, an increase in bargain buying could push the commodity back up to strong levels.

Companies who hold significant investments of the metal or deposits in resource-rich areas like Northwestern Mexico could see a sharp rise in the value of their silver mining stocks.

Gold futures bounce on weak U.S. dollar data

Tue, 11 Oct 2011 14:59:13 GMT

The value of gold futures rose by a significant amount following the decline of the U.S. dollar and strong post-holiday purchases in China, according to Dow Jones.

Gold for December delivery, the most actively traded contract, rose $31.20 to $1,667.00 an ounce, marking an increase of 1.9 percent for the commodity, reported the news outlet.

Increased holiday purchases in China helped to push the commodity higher, which had already risen on the slight decline of the U.S. dollar. Gold, which is denominated in the greenback, is helped by the drop of the currency due to the potential rise in foreign investments.

"We are seeing some buying interest from Shanghai, and the interest in physical gold is still strong," Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong, told The Economic Times.

Mining operations in commodity-rich areas like British Columbia and Alaska could benefit from a rise in gold mining stocks, as the value of these deposits is expected to rise with the price of the metal.

Gold price forecasts remain bullish for 2012

Fri, 07 Oct 2011 17:38:07 GMT

Forecasts for the price of gold in 2012 remain bullish despite the volatility of the metal in the summer months, according to the Australian Associated Press.

Several analysts have predicted that the metal would rise above the $2,200 an ounce mark during 2012, as they see demand for the commodity increasing further because of economic uncertainty, reported the news source.

"Strong physical demand especially from Asia and steady ETFs (exchange traded funds) assets continue to support gold prices and as such this seems to have cushioned the decline," Ross Norman, chief executive of London-based bullion broker Sharps Pixley, told the AAP.

Norman noted that the recent dip in the price of gold was similar to a period in 2008, when the metal dropped sharply. He went on to detail how the commodity rose by a significant margin following the slight loss, according to the news source.

The price of gold for December delivery is trading at $1,652 an ounce, CNN reported.

Companies that have significant operations in deposit-rich areas like Northwestern Mexico could see a sharp rise in the value of their gold mining stocks.

Demand for physical silver expected to rise

Fri, 07 Oct 2011 17:36:59 GMT

The physical silver markets are benefiting from a rise in demand for the commodity, and are becoming increasingly dissociated from the paper sector of the metal market, according to IBTimes.

According to data from Reuters, the demand for silver coins rose by 28 percent in 2010, and this number could increase further for 2011.

The demand for the metal has been fueled by a significant increase of production in several mints around the world.

The Canadian Mint recently announced that it expected a sales-rise of 30 percent for the metal, and investor demand within the country could push this number higher, according to IBTimes.

Demand for the physical silver remains high, while the supplies of recycled metal are at near-all-time lows, reported the news source.

Silver Coins Today reported that demand also rose in the U.S. for silver coins, as the mint in America has posted sharp rises in the amount of sales for the commodity in the past two months.

Companies that have significant operations in deposit-rich areas like Northwestern Mexico could see a sharp rise in the value of their silver mining stocks.

Copper traders bullish, expect China to build stockpiles

Fri, 07 Oct 2011 16:18:46 GMT

Analysts and copper traders are the most bullish in two months on year-low speculation prices that they say will kick-start China, the world's largest copper buyer, to build stockpiles, with gains in gold also expected.

In a Bloomberg survey, two-thirds of respondents predicted copper will rise in the coming week marking the most bullish outlook in six weeks. On October 3, copper fell to a 14-month low, leading Diego Hernandez, chief executive officer of Codelco, the world’s largest copper producer, to believe China will take advantage of the prices to build stockpiles.

"The market has overshot, leaving prices more negative than the risks to growth imply," said Nic Brown, head of commodities research at Natixis Commodity Markets Ltd. in London. "It’s likely to be choppy for a while, but looking back this will probably be seen as a good buying opportunity."

On Thursday, October 6, the three-month contract for copper traded at $7,200 per metric ton on the London Metal Exchange, according to NASDAQ.

At a recent London Metals Exchange conference, 55 percent of attendees agreed copper will likely average between $7,000 and $9,000 per ton in 2012.

Zambian mining ban lifted after two days

Thu, 06 Oct 2011 17:02:07 GMT

Newly elected Zambian President Michael Sata has flexed his political muscles since taking office, imposing a ban on all copper, cobalt, gold and nickel exports on Tuesday, October 4, making good on campaign promises to increase mining taxes and attain more control of mineral exports, The Wall Street Journal reports.

But only two days later, on October 6, the ban was lifted, leaving miners panicked and uncertain about what the future holds. In the short period, mining companies failed to export as much as 2,000 metric tons of copper per day.

According to Reuters, Sata wanted to show his teeth to mining companies that may be misreporting the amount of minerals leaving the country, as the president has stated that all export payments need to be routed through the central bank, providing oversight to Zambia's leading economic driver.

"The suspension has been lifted. The job has been done. We don't need 10 years to do the job," Godwin Beene, mines permanent secretary, told the news provider.

According to information minister Given Lubinda, lifting the ban was partially due to the time it will take to develop the new guidelines Sata has envisioned.

Expert: Investing in Mexico silver a solid choice

Thu, 06 Oct 2011 15:52:52 GMT

Silver mining stocks may have run the gamut in recent weeks in typical silver-price fashion, but according to investment experts at Smallcap Network, now may be the prime time to invest in stocks of silver mining companies operating in Mexico.

The country has attracted a number of small and large companies to its vast deposits of silver as well as new exploration programs that aim to seek out further mineralization sites. Mining companies from all over the world are lured to the area because of Mexico's unique and accommodating mining environment, according to the news source.

Mexico is home to several new projects due to its low taxation rates and zero mining royalties, while foreign companies are also attracted to the country, as it allows foreign ownership and repatriation of capital.

Silver mining companies operating within Mexico also face less nationalistic and political risks than other viable mining countries like Bolivia, Peru and Venezuela, the news source stated.

On Wednesday, October 5, silver prices increased 0.87 percent to $30.10 per ounce, showing positive development for the metal. So far in the month of October, silver has risen 0.1 percent, according to Business Insider.

Gold investment opportunities rampant in Mexico

Thu, 06 Oct 2011 15:49:55 GMT

Although gold stocks have recently taken serious blows after riding high for months, investment experts say there may be no better time than now to take a closer look at gold mining operations in Mexico, whether they are long-established or newly budding, according to Smallcap Network.

The investment news source reports that Mexico is one of the least risky areas in the world for mining operations to commence, as the country has seen several new companies develop extraction sites, ranging from juniors to majors.

Mexico is the choice for such gold mining companies because of its favorable conditions for both existing mining companies and exploration services. The country's low tax rates and lack of mining royalties are attractive prospects for foreign companies, as well as the country's toleration of foreign ownership and repatriation of capital.

In terms of political and regulatory stability concerning the mining sector, Mexico has been lumped in with mining-intensive countries like Australia, Canada and Chile, according to the news source.

Reuters reports that despite recent downturns, mining CEOs from various companies all agree that prices are still expected to climb, surpassing $2,000 per ounce by 2012.

"The conditions for gold right now have never been better," said one CEO.

Gold reverses early drop, steadies on negative U.S. stocks news

Thu, 06 Oct 2011 11:44:46 GMT

The price of gold steadied on negative U.S. stock data, as the metal reversed early losses and stabilized after investors made a return to the safe-haven commodity, Reuters reported.

Although the metal recovered, investors may remain weary of gold due to the potential for the metal to be favored by traders when the global economy is suffering, according to the news source.

"Less pressure on other, riskier assets like stock markets means there is also less pressure to sell gold holdings to compensate for losses suffered otherwise," Peter Fertig, a consultant at Quantitative Commodity Research, told Reuters.

Kitco News reported that the metal ended higher and will rise further because of bargain hunting by bullish commodity investors, a trend that may not end in the near future due to the shaky situation in Europe.

Until the crisis is resolved among the EU leaders and banking institutions, the metal could continue to rise, according to the news source.

The potential rise for the metal could help gold mining stocks increase for companies that are located in deposit-rich areas like British Columbia.

Peru copper miners strike again over wages

Thu, 06 Oct 2011 11:43:23 GMT

Copper miners for Freeport-McMoRan Copper and Gold Inc. are on strike again, as the wage talks between the company and the group collapsed for the third time in a little over a month, Bloomberg reported.

A total of 1,200 workers at Freeport's Sociedad Minera Cerro Verde SAA unit, the third largest copper producer in Peru, will walk off their jobs in protest of the lack of a wage hike, according to the news source.

"Talks have made little progress as the company isn’t even meeting half our demands," Leoncio Amudio, secretary general for the union, told Bloomberg. "This strike will probably last longer than last time unless we reach an agreement."

While a majority of strikes in Peru are declared illegal by the nation's government after several days, officials from the country have already ruled that this strike is completely legal. Reuters reported that this development could prevent the company from hiring temporary staff and could hurt production.

A disruption of production could help companies that are mining the resource elsewhere. Copper mining stocks for businesses in deposit-rich regions like Northwestern Mexico could benefit from this development.

Indian demand gives boost to silver mining stocks

Tue, 04 Oct 2011 17:06:11 GMT

The continuation of significant demand from India has led experts to believe that the silver mining stocks may rise in the near future.

According to Gold Core, physical demand for the metal remains high and has been reflected by a slight uptick in premiums for the commodity. Coin and bar purchases have continued, and experts in the industry predict that silver will rise above $50 an ounce by the end of the year.

While demand from Western nations has stayed at marginal levels, the Asian markets have seen capital flooding into these commodities, according to the news source.

Gold Core reported that heightened physical demand from the Indian subcontinent is causing supply issues, as mining companies and producers are unable to increase their output at a fast enough level.

The price of silver for December delivery is trading at $29.84 on the New York Mercantile Exchange, according to CNN.

Companies with operations in deposit-rich areas like Northwestern Mexico may benefit from the increased demand for silver, especially due to the long-term potential for the commodity.

Commodities heavyweight eyes record level for 2012 copper

Tue, 04 Oct 2011 17:04:44 GMT

According to a report from commodities heavyweight Trafigura, copper may hit new records as soon as the second quarter of 2012, reported Reuters.

"I'm still a believer in the commodities supercycle. I don't think that story has changed," Simon Collins, a director in the firm, told the news source. "The fundamentals of markets where raw material supply are constrained are good...and that in 2012 that is primarily coming in copper and nickel."

Copper has remained a top pick among metals investors because of a tight supply pipleline, worsening economic indicators in the U.S. and euro zone and increased Asian demand, according to Reuters.

The demand from China has subsided slightly due to a national pullback from the commodities market, but this development has been seen as temporary by many within the industry.

"The Chinese are buying more concentrate," Collins told Reuters. "They are coming back to the market. They have been trying to hold back for some time, but eventually they have had to buy."

Copper for December delivery is currently trading at $3.06 a pound, according to CNN.

Copper mining stocks and companies that operate in deposit-rich areas like Northwestern Mexico, could benefit from this rise in demand.

Alaska's rise to prominence could help gold mining stocks

Mon, 03 Oct 2011 16:56:27 GMT

The mining industry in Alaska has grown by a significant amount in recent years, and with the influx of capital into the state's sector, the potential for profits could increase further, according to the Fairbanks Daily News-Miner.

Along with the influx of capital into the region, the industry has been supported by a 3,500-person workforce comprised of residents in more than 100 communities across the state, reported the news source.

Companies spent up to $225 million exploring the state for potential mining sites, an increase of more than 25 percent from the year before. Workers were hired at these facilities, and this group helped to produce $3 billion in gross mineral revenue within the state, according to the News-Miner.

Many of these companies are providing funding to sites across the state due to the high value of precious metals that are present there. Gold is currently valued at $1,657.70 an ounce, and may increase due to global economic developments, according to Bloomberg.

Companies with mining operations in the state could see a significant rise in the value of gold mining stocks, as the metal could reach significant levels.

Gold prices rise on safe-haven demand

Fri, 30 Sep 2011 18:19:26 GMT

The price of gold rose to reverse the losses that were incurred due to the commodity sell-off last week, The Wall Street Journal reported.

Gold for December delivery, the most actively traded contract, settled up $5.00 to $1,622.30 an ounce, marking an increase of 0.3 percent for the commodity, according to the newspaper.

Kitco News reported that volatility is expected to remain in the metals market as traders continue watching the developments in Europe before making any significant investments. Although gold may fluctuate in value, analysts have predicted that metal will come out of the crisis on top.

"Markets are hanging onto every development in the eurozone, even though things are moving at a much slower pace than U.S. traders are accustomed to," Tom Pawlicki, analyst at MFGlobal, told the news source. "That explains the volatility in metals prices although it makes things more difficult to interpret."

Unemployment data from the U.S. could also lead the metal higher, according to Kitco News.

Companies that have sites in deposit-rich areas like south central Alaska could see an improvement in the value of their gold mining stocks because of these developments.

Rise in Asian demand could boost copper mining stocks

Fri, 30 Sep 2011 18:01:31 GMT

Several developments in China and India have outlined the growing demand for copper in the region, a move that could leave mining companies scrambling to increase production.

Sites like Northwestern Mexico, where there are significant resources of this metal might benefit from this increased demand.

Demand for copper in India is expected to soar at an average annual rate of 7 percent over the next three years, according to Mineweb.

Analysts have noted that India suffers from a significant demand and supply gap of approximately 97 million tons, and this may widen if the industrial sector in the country continues to expand, reported the news source.

Chinese demand for copper is also expected to rise by a significant amount in the next several years. According to Reuters, the importation of the commodity could increase by 5-to-7 percent in 2012.

Reuters reported that copper consumption in the Asian superpower could rise to 7.8 million tons in 2012, as the power sector within the country is supposed to remain strong and grow to higher levels than 2011.

Silver futures rise due to increase in spot demand

Fri, 30 Sep 2011 14:29:01 GMT

Silver prices moved upwards following an increased interest in the metals market, a move that sent futures for the commodity higher because of the spot demand, the International Business Times reported.

Market analysts attributed the rise in demand for the metal to the firming global trend and pick up in demand for the spot market because of the ongoing 'Navratra' festival in India, according to the news source.

The price of silver for December delivery rose $0.64 to $30.78, marking an increase of 2.14 percent for the commodity, according to CNN.

Silver also benefited from the negative developments that were reported in Europe, as Germany and several other member nations worked to prevent a spreading of the Greek debt to other countries, Barrons reported.

MF Global’s Tom Pawlicki noted that the developments "appear capable of keeping metals buoyed over the next several days."

This increased demand for the metal bodes well for companies that have invested in significant deposits of the commodity. Businesses with operations in resource-rich areas like Northwestern Mexico could see a sharp rise for silver mining stocks.

Copper demand continues to outpace supply, Xstrata says

Wed, 28 Sep 2011 18:19:14 GMT

According to the chief executive at Xstrata, the global demand for copper cathode has remained firm despite a challenging macroeconomic environment while the production of the resource continues to lag behind. Supplies will continue to do so in the near future, The Wall Street Journal reported.

"Supply has failed to keep pace with demand again this year, generating a substantial market deficit," Charlie Sartain said in a presentation. "We anticipate a more modest deficit next year, as a number of…mine projects ramp up."

Demand for the commodity has remained high due to the many applications for copper, which unlike some other metals, retains value due to several uses for the resource, according to Dow Jones.

According to the Wall Street Journal, the demand for copper cathode is expected to grow 5 percent in 2012, but the mining for the metal has not increased. This disparity could widen due to the lack of new projects.

Existing projects in deposit-rich areas like Northwestern Mexico could benefit greatly from the increased demands. Copper mining stocks may increase because of these developments.

Precious metals dealer notes mints' inability to keep up with silver demand

Wed, 28 Sep 2011 18:09:58 GMT

According to the CEO of precious metals dealer Dillon Gage, the U.S. Mint has been unable to keep up with the demand for silver.

In the silver bullion coin market, the U.S. Mint produced nearly 35 million ounces of silver Eagles last year, and would have released and produced more if it wasn't for a lack of blank bars to make the coins.

Terry Hanlon, the president of Dillon Gage, noted "With demand outpacing supply, we've seen premiums increase at the mints and in the secondary market."

Sales at the U.S. Mint are up more than 25 percent for 2011 compared with those recorded in 2010. This increased demand is due to a move by many emerging markets to favor the commodity, and the rising value of the metal.

Companies and the associated silver mining stocks could rise by a significant margin if the demand continues to grow. Deposit-rich areas like Northwestern Mexico may benefit greatly from this increase in value.

The price of silver for December delivery is $30.13 per ounce, according to CNN.

Chinese copper demand remains constant regardless of price

Wed, 28 Sep 2011 18:08:41 GMT

While some metals may suffer due to rising costs and inflation in certain areas of the world, copper has seen constant demand from China despite an increase in price over the past several years, according to Metal Miner.

Aside from the benefits that copper holds against some metals - it does not oxidize, which decreases conductivity, and it is an excellent green electricity conductor - the metal has remained a targeted import for China, reported Morningstar.

China is the world's largest consumer of copper, with close to 40 percent of the demand, and when the nation suffered a slight economic drain between 2006 and 2010, raw material imports for the metal rose by up to 50 percent, Metal Miner reported.

This occurred even as the price of the commodity rose, and it showed that Chinese copper consumers do not find value or availability a hindrance. They do not find the amount of money to be historically high and have continued to import the metal at a phenomenal pace, according to the news source.

The increased demand in China, which is predicted to continue, bodes well for copper mining stocks of companies who own deposits in metal-rich areas like Northwestern Mexico.

Gold rallies as greenback drops

Tue, 27 Sep 2011 17:48:29 GMT

The price of gold rallied to reverse losses that had been incurred following a three-day sell-off that occurred in the commodity markets, according to Reuters.

Gold for December delivery, the most actively traded contract, rose $65.30 to $1,660.40 an ounce, marking an increase of 4.1 percent for the commodity, reported the news source.

"Given that we haven't had any correction for months, this has brought better value to the market for people who want to get back into gold," Robin Bhar, an analyst at Credit Agricole told Reuters. "I think gold's bottomed out here and longer term, have all the factors that were bullish for gold really been addressed?"

Currency debasement, economic imblances and sovereign debt were all cited as potential reasons why the market for the safe-haven commodity would continue to grow.

Actions within the European Union could help increase the value of the yellow metal, along with a weakening dollar that has been affected by a lack of unity among the leaders of the U.S., according to The Street.

The value of the yellow metal could increase significantly because of the lack of economic certainty in the EU and the U.S. Gold mining stocks for companies with large deposits of the commodity, like the Alaska and British Columbia regions, may rise sharply.

Silver prices fall slightly, recover in strong fashion

Tue, 27 Sep 2011 17:47:13 GMT

The price of silver had followed gold down during the three-day sell-off of commodities that occurred, but the metal was able to recover as investors returned to the safe-haven assets, according to the International Business Times.

Problems that have persisted in Europe concerning the default of Greece and debt in several other countries were some of the reasons that metals were able to recover. Investors ditched the more risky currencies in favor of gold and silver, The Wall Street Journal reported.

"Euro area politicians and policy makers are still behind the curve in tackling the debt problems and in successfully containing or reversing contagion," Suki Cooper, a precious-metals analyst with Barclays Capital, told the news source.

The price of silver for December delivery rose $2.68 to $32.66 an ounce, marking an increase of more than 9 percent for the metal. This sharp rise helped reverse losses that occurred last week, reported the Journal.

Silver mining stocks for companies that mine for the metal in deposit-rich areas like Northwestern Mexico could follow the rise of the commodity.

Experts note mining stocks may catch gold

Fri, 23 Sep 2011 18:08:39 GMT

A group of industry experts has predicted a sharp rise in the value of gold mining stocks due to the current difference that exists between these and the actual price that the metal is trading for, according to NewsMax.com.

Gold prices have surged more than 20 percent for the year, and mining stocks have yet to keep pace with this sharp rise. This has given investors a reason to bet on companies that extract these valuable resources, reported the news source.

"At some point it has to turn," Nick Holland, chief executive of Gold Fields, the fourth-largest gold miner, told NewsMax.com. "We’re just at a strange point in the cycle."

Hedge funds and a broad range of investors have seen this gap as a potential opportunity to capitalize on the low value that gold mining stocks have, relative to the price of gold.

Higher dividend payouts may also push investors towards the gold mining stocks, as the valuations for these transactions are at extremely low levels in the current market, ETF Trends reported.

Gold mining companies who are in deposit-rich areas such as Alaska could benefit greatly from this move by investors.

Indonesia mine strike could impact supply of copper

Thu, 22 Sep 2011 16:49:06 GMT

The mining strike at the Freeport-McMoRan copper and gold mine could affect the global supply of these two commodities, something that could lead to a higher value for both of the metals, The Associated Press reported.

Gold mining stocks and copper mining stocks of other companies could benefit from the decreased amount of output from the mine, as estimates from the company reveal that 940 million pounds of copper and 415,000 ounces of gold could be severely impacted by the work stoppage, according to the news outlet.

"It comes alongside an absolute plethora of other disruptions experienced this year, and that is certainly feeding through into a tighter (copper) concentrate market," Nicholas Snowdon, an analyst with Barclays Capital, told Reuters.

The miners' union is demanding a significant pay raise due to the rising value of the commodities, and has enacted a monthlong strike in an effort to show their grievances with the company, according to the news source.

Mining operations in other parts of the world could benefit from the depleted global supply, as projects in metals-rich areas like Northwestern Mexico may see a rise in profits.

Industry experts bullish on value of silver

Wed, 21 Sep 2011 16:39:05 GMT

The precious metals market has been a showcase for the increasing value of gold, but industry experts have also noted the likely rise that will occur for silver in the coming months, Reuters reported.

With the price of silver already having doubled in the past 12 months, experts have detailed that this is not a random occurrence. Economic conditions throughout the world could lead the metal higher, according to the news source.

"What we're seeing in prices of silver now is a completely natural response to the economic malaise," John Smith, chief executive of Silver Standard Resources, said at the Denver Gold Forum. "This is not a sector to rent. This is a sector to hold. What we're seeing in the world is not an issue that going to be solved quickly."

Silver has many uses outside of being a safe-haven asset, as it is the best metallic conductor of electricity. This could lead to a rise in the silver mining stocks, which may follow the price of the metal upwards in the coming months, according to Seeking Alpha.

Places like the Northwest region of Mexico, which are silver-rich areas, could benefit from the rise in the value of the metal.

Italy's credit downgrade could give boost to gold mining stocks

Tue, 20 Sep 2011 18:02:24 GMT

Tuesday, September 20 saw gold futures rise in value following the Monday night reduction to Italy's debt credit rating, per the order of Standard and Poor's rating service, published reports indicate.

Thus the sovereign debt crisis tearing through the euro zone has claimed another victim as Italy's rating reduces from A+ to A, according to Dow Jones Newswires. The credit rating service pointed to poor economic growth and ripening political issues, both of which do not enhance the outlook for the third-largest economy in Europe.

After having dropped in value 1.9 percent on Monday, gold futures are driving higher on Tuesday as they typically do during rough economic periods. Monday's losses were partially attributable to a dollar strengthening against six counterpart currencies.

Gold futures are currently sitting at around $1,800 per ounce.

As the price of gold drives higher, it is likely to give a boost to gold mining stocks as companies seek to extract the yellowish metal from the ground. Areas such as south central Alaska and British Columbia offer a great deal of gold opportunities.

Experts note gold prices could reach $2,200 by end of 2011

Mon, 19 Sep 2011 17:29:27 GMT

A combination of world economic factors and higher demand could lead to a significant rise for the price of gold, as several industry experts predict that the metal will reach $2,200 an ounce by the end of 2011.

The chief executive for Duet Commodities Fund Ltd., Tony Hall, has predicted a sharp rise in the price of the precious metal.

"The fear of recession, the fear of worse economic numbers is weighing on commodities and stopping gains from fundamentals from coming through," noted Hall. "We still believe in the gold story. If you believe the world is in trouble or in further economic growth disruption, then gold is a good safe haven."

Reuters reported that several major mining executives have also pointed to the potential rise to the $2,200 mark by the end of 2011, as these industry leaders have also pointed to the rise of gold mining stocks because of the increased demand for the commodity.

The projections from industry experts have given rise to confidence in the metals sectors, especially in places like British Columbia and Alaska where significant gold mining projects have begun.

Gold prices rise on renewed European concern

Fri, 16 Sep 2011 17:42:28 GMT

The price of gold rose the most in a week on September 16 and reversed slight losses that have occurred in recent trading following news that Europe's debt crisis has not subsided and may resurface, Bloomberg reported.

European finance ministers ruled out the most recent efforts to prop up the faltering economy, along with giving no indication of a future allotment of financial aid for lenders within the continent, according to the news source.

"They’re only really geared to put out spot fires and play brinkmanship, rather than to deliver a killer package that will actually resolve all their issues," Tom Price, an analyst at UBS AG, told Bloomberg by telephone from Sydney. "In that environment, the problem drags on for years, not months, and it’s a great environment for gold."

More than eighteen months of crisis-fighting and a total of $352 billion of aid for Portugal, Greece and Ireland have failed to stabilize the markets in the EU and has spread the problem to Spain, reported the news source.

The price of gold rose $33.30 to $1,814.70 an ounce, marking an increase of 1.87 percent for the commodity, CNN reported.

Gold mining stocks for companies that are extracting the metal, especially in resource-rich areas like western Mexico and Alaska, may rise alongside the commodity.

Gold mining stocks poised for boom, experts say

Wed, 14 Sep 2011 17:30:06 GMT

Though gold mining stocks have performed well in the recent weeks, the trends have favored the metal itself. This is set to change as experts have predicted a significant boom in the near future.

The volatile swings for the price of gold have led to a fluctuation of gold mining stocks in the recent months, but the gold mining stock indices have changed less in the past several weeks and have been on an upwards trajectory, according to Mineweb.

Record profits and significant increases in reported earnings for many major gold producers have led the trend upward, as these companies have sparked a move by traders to favor the mining stocks for the commodity, instead of the actual value of the metal, reported the news source.

The mining risk that had been holding these stocks back has subsided in recent weeks and the commodity price fluctuation is no longer as significant of a factor in the value of mining assets.

It is not just the major players that attractive picks for the impending boom, as smaller mining companies are being adopted into the group of stocks that could represent the boom, according to GoldPrices.biz.

Operations that are underway in the gold-rich region of western Mexico could stand to benefit from the mining boom and market shift.

Gold mining stocks rise on performance of metals market

Wed, 14 Sep 2011 13:46:41 GMT

Gold mining stocks are now rising at a rate that rivals the increases that have been observed by precious metals over the past several months due to the global insecurities that exist, Commodity Online reported.

The rise of these gold mining stocks has been fueled by the precious metals market that has seen sharp increases due to the Eurozone debt crisis, U.S. economic recovery concerns and the global inflation that has taken place, according to the news source.

Shares of the gold mining stocks often rise when the rest of the stock market swoons, as these investments are viewed as safe-haven outlets for traders, reported Cabot Headline News.

"The typical miner has production costs south of $600 an ounce, and is actively selling gold for $1,800," a Seeking Alpha report outlined. The price of gold may reach levels that are much higher than the current $1,800 that has been the standard.

Significant gold mining efforts are underway in Mexico and British Columbia, as these sites are capitalizing on the high value that precious metals have reached in the markets.

Gold demand to increase by end of 2011

Tue, 13 Sep 2011 18:01:01 GMT

Though the demand for gold dropped in the second quarter of 2011, the precious metal is expected to benefit from an increased demand at the end of the year, according to Reuters.

According to the World Gold Council, gold mining stocks may benefit from the increased demand for the metal, as robust jewelry buying in India and China and a recovery in investment demand could lead to a higher-than-expected value for these assets.

The overall demand for the commodity fell 17 percent year-on-year in the three months from April to June, but the third quarter opened with industry analysts projecting a sharp rise due to increased investments from China and India, reported Reuters.

Saudi Arabia has also contributed a significant amount of resources to investing in the metal, helping gold mining stocks move up due to the Arab nation's demand for the commodity, Commodity Online reported.

Gold operations in Sonora, Mexico, may benefit from the increased demand for the precious metal, as this region holds a large deposit of the resource.

Silver prices expected to make run this fall, economist says

Tue, 13 Sep 2011 13:08:28 GMT

According to a chief economist with GoldMadeSimpleNews.com, silver is set to make a significant run this fall, possibly reaching levels of up to $65 an ounce. The metal is projected to rise due to the drop that had occurred earlier in the year, reported the International Business Times.

Silver has been projected to reach higher levels due to the potential influx of capital that may come with the Indian wedding season and a move away from the currency markets as the world economies continue to struggle, the news source reported.

"It just stabilized so well after the May decline from $50 per ounce," Thomas Paterson told the Times. "Silver is a better play than gold for the next three to six months. I could see a quick run to $65 or so."

While the projected rise is set to take place in the near future the price of silver for December delivery dropped slightly in trading on September 12 following the weekend. The precious metal declined $0.01 to $40.20 an ounce, marking a drop of 0.04 percent for the commodity, CNN reported.

Silver mining stocks in areas that are rich in resources like Mexico and British Columbia may benefit from the potential rise in value of the metal.

Demand from solar industry may push up silver mining stocks

Wed, 07 Sep 2011 13:00:33 GMT

When most people think of silver uses they typically think of table settings and jewelry, however the precious metal has a myriad of uses.

One of the most important and fast-growing uses of the whitish metal is in solar installations. According to the Solar Energies Industries Association, the number of solar photovoltaic installations in the U.S. jumped from 435 in 2009 to 878 in 2010.

According to the Market Oracle, this increased demand from the solar industry has pushed up the price of silver up.

Silver market expert David Morgan told the news source that he believes that silver prices will sit at around $45 per ounce in the fourth quarter of 2011, which is close to the metal's all-time high of slightly more than $50.

Increased prices of the precious metal are going to give a push to silver mining stocks. One of the best locations in the world for silver mining is Mexico, particularly in Sonora.

As the demand for silver in a variety of sectors increases, so too will silver mining stocks.

Demand for copper, other metals expected to skyrocket in near future

Thu, 01 Sep 2011 17:04:57 GMT

An official for a prominent mining company recently said that global demand for copper and other metals will increase at an astronomical rate over the coming years.

David Joyce, Rio Tinto's MD for iron ore, told the Africa Downunder conference, in Perth, Australia, that demand for copper, iron ore and aluminum would increase two-fold within two decades, reports Creamer Media's Mining Weekly.

While that figure is certainly "staggering" - as Joyce put it - the executive put the increased demand in a perspective that really drove his point home.

"To put this in perspective, the mining industry would need to mine, process and move more raw materials and minerals in the next 20 years than it has done in the past 10,000 years," he said.

The increased demand is expected to result from the further development of countries around the world, which will need the useful metals to construct buildings, cars and electronic devices.

Such an increase would likely drive copper mining stocks upward as operators in areas such as Mexico could capitalize on the increased demand.

As Chile copper production falls opportunities for other countries rise

Wed, 31 Aug 2011 19:20:20 GMT

Chile saw its production of copper during July plummet amid strikes and poor weather.

According to Chile's National Statistics Institute, the country's copper production fell by 18 percent on the year in July to 373,498 metric tons, reports Dow Jones Newswires. Chile produces about one-third of the world's copper, meaning this decrease in production may lead to increased opportunities for copper mining stocks in other parts of the world.

One of the major problems faced by the Chilean copper industry was a strike at BHP Billiton's Escondida mine, which is the largest such mine in the world. The strike reportedly halted operations at Escondida for 10 days.

According to Bloomberg, while the production of copper fell in Chile, demand for the metal has remained high.

"Consumption has been the engine of the economy and has grown quite strongly without showing signs of deceleration," Flavio Magnasco, chief economist at Banco Falabella, told the news source. "There may be months where production will be lower, but as consumption remains strong, output will have to continue rising."

This output may come from a variety of places other than Chile such as Alaska and Mexico, which both have vast deposits of copper.

Indonesia mine strike could boost copper mining stocks

Tue, 30 Aug 2011 11:28:08 GMT

Workers at a major copper mining operation in Indonesia may go on strike, which would likely give a boost to copper mining stocks in other areas of the world, such as Mexico.

According to Reuters, workers at the Freeport-McMoRan Copper & Gold's Grasberg mine plan to strike after a dispute over pay was not resolved. The news source reports that this action would lift the price of copper as supplies of the metal diminish.

Union official Virgo Solossa told the news provider that the two sides remain far apart.

"The gap between what we wanted and what the company offered was enormous. They think a bonus is considered a rise, for us a pay rise is a pay rise," he said.

A strike of 8,000 workers at the mine in July resulted in the loss of 35 million pounds of copper production, reports Reuters.

This loss of the supply would likely boost copper mining stocks in other places as the metal is needed for building construction, power transmission and electronic manufacturing.

Some particularly promising copper operations are located in Sonora, Mexico.

Gold continues to set records

Thu, 25 Aug 2011 17:29:07 GMT

Gold prices recently passed the $1,900 per ounce mark for the first time in history, indicating that gold mining stocks may be a wise investment.

While the price of the yellow metal has fallen into the low $1,700 per ounce range after reaching its record high, there are many experts who are still optimistic about the future of gold prices.

"Gold has continued to blast ahead even with a relatively strengthening U.S. dollar, strongly performing treasuries and other safe havens," Peter Richardson, chief metals economist with Morgan Stanley Australia Ltd., told Bloomberg . "All of that tells me that this is really all about preserving real purchasing-power."

While buying the precious metal itself has been a good investment over the course of the year - the price per ounce has increased greatly since January - purchasing gold mining stocks is also likely a smart move.

Many companies around the world have been looking for and extracting the precious metal, with some of the most promising projects located in South Central Alaska and British Columbia.

A survey conducted by Bloomberg revealed that the median prediction for gold prices had the yellow metal trading at $2,000 per ounce by December of this year.

Expert: Silver could hit $50 per ounce

Fri, 19 Aug 2011 17:52:24 GMT

Silver mining stocks rose dramatically on Friday, following the market turmoil caused by the U.S.' downgraded credit rating, according to the International Business Times. Although gold was initially the only precious metal to increase, silver soon followed and rose to $42.04 an ounce, reports the news source.

Some market analysts believe silver prices will continue to increase. Paul Walker, GFMS global head of precious metals, told Barrons that he believes silver will rise as the price of gold continues to surge.

"Silver will benefit from the same factors as that of gold from rising investment drivers," Walker stated in a firm market review.

Both silver and gold have commonly been considered safe investment options during times of economic uncertainty. However, with gold predicted to rise to $1,900 an ounce, many smaller investors have turned to silver as a cheaper alternative, according to the newspaper. Walker predicts that silver could reach $50 an ounce over the course of the coming months.

Silver mining is a rapidly expanding industry. Many mining companies are currently finding opportunities for growth in Mexico.

Gold prices hit another record in good news for gold mining stock holders

Thu, 18 Aug 2011 17:38:12 GMT

While gold recently fell below $1,800 per ounce, economic uncertainty around the world has helped again push the yellowish metal passed the benchmark price.

Gold futures for December delivery rose above $1,824 per ounce on August 18, an intraday record, according to The Wall Street Journal. However, many analysts do not believe that gold's rise is done.

Sanya Harnpatanakitpanich, the head of derivatives at Globlex Securities, told the Bangkok Post that he believes that gold will reach $2,000 an ounce if any of the European nations struggling with the sovereign debt crises have their credit ratings downgrading like the U.S.

"Gold and silver are very volatile at the moment," he said. "The price will vary in line with news from the U.S. and the euro zone."

The rising price of the precious metal will also likely increase the value of gold mining stocks as operators attempt to extract more of the substance from the earth.

A number of potentially lucrative mining operations are currently being conducted in Alaska, British Columbia and Mexico.

Gold has increased in value by more than 25 percent since the beginning of the year.

Gold exploration projects in Alaska highlight state's strong mining outlook

Tue, 16 Aug 2011 15:50:50 GMT

Gold exploration in Alaska continues to be strong as a number of companies are hoping to find large deposits of the yellowish metal in the state.

Alaska is a well-known location for gold mining with vast quantities of undiscovered deposits of the expensive metal. Gold prices recently topped $1,800 for the first time before retreating slightly, showing the value that gold mining stocks can present.

A number of gold exploration companies are checking out potential deposits in Western Alaska related to the high-grade Ben Vein system.

It is estimated by several companies that there are more than 150,000 ounces of gold in the area. One estimate puts the potential amount of gold in the region at 1 million ounces.

In addition, it is believed the area contains more than 300,000 ounces of silver. Silver mining stocks may increase as the whitish metal has approached record highs this year.

Western Alaska isn't the only place in the Land of the Midnight Sun that has a positive gold outlook as South Central Alaska also provides strong gold mining opportunities.

Gold prices soar following U.S. credit downgrade

Fri, 12 Aug 2011 17:14:13 GMT

Gold hit a record high on Monday as prices increased to $1,715 an ounce, according to Reuters. The soaring prices are due to investors reaction to the U.S. Treasury’s downgraded credit rating, reports the news agency.

After Standard & Poor's lowered the credit rating from AAA to AA-plus, many investors responded by purchasing gold, according to The Wall Street Journal. Gold is commonly considered a safe investment during difficult economic times because it generally maintains its value better during financial instability than other assets, reports the newspaper.

Although the credit downgrade may cause problems for the economy as a whole, it has proven to be beneficial for gold mining stocks. The International Business Times reports that many gold mining companies’ stock prices have increased by about 5 percent. The price of shares in these companies is expected to continue to rise as the price of gold increases, according to the media outlet.

Gold prices have increased by 20 percent this year, according to The Wall Street Journal. Goldman Sachs forecasts gold prices will increase a projected 5.8 percent over the next six months, reports the news source.

Analysts suggest silver prices will soar

Fri, 12 Aug 2011 17:10:25 GMT

Gold stocks have increased dramatically recently and some analysts believe that silver mining stocks will soon follow, according to Mine Web. Phil Baker, CEO of Hecla Mining, predicts that the high price of gold will cause an increased demand for silver, reports the news source.

Silver has often been considered a viable second choice to gold in times of economic instability, according to CNN Money. Due to the sky-rocketing price, gold has become too expensive for many smaller investors, reports Mine Web. “Silver is a retail investment,” Baker told the news source.

Although silver was down 3 percent yesterday, recent reports indicate the silver mining stocks are on the rise, according to The Wall Street Journal. George Gero, RBC Wealth Management precious metals strategist, told the newspaper that this initial lag is expected, but demand will likely continue to increase due to the lower price in comparison with gold.

Baker also stated his belief that silver stocks will rise, adding that he believes the white metal will increase even more dramatically than gold has, according to Mine Web. “If you’re convinced that gold will continue to have strength, then we believe silver will follow,” Baker told the news agency.

Copper stocks should rise after hitting lowest price in 8 months

Fri, 12 Aug 2011 17:09:37 GMT

Copper is expected to rebound after hitting its lowest price in eight months, according to Mining Weekly.com. The London Metal Exchange (LME) saw copper sink to its lowest price yesterday since December 1, 2010, according to the media outlet.

Copper mining stocks can often be indicative of the economic climate, according to The Wall Street Journal. Copper is a commonly used commodity in everything from cars and plumbing to electronics like iPhones. In bad economic times many people stop buying these goods, causing the demand for copper to decrease, reports the newspaper.

However, some analysts believe copper will soon begin to rise, and the severe drop was mainly due to the frenzy caused by U.S.’ lowered credit rating, according to Mining Weekly.com. Yang Jun, analyst for China Futures, told the news source that he believes that the recent low will be the lowest of the year. “We should see copper moving upwards of that from here on,” Jun told the media outlet.

Adam Klopfenstein, an MF Global senior market strategist, sees a positive outlook for copper stocks and stated his belief that demand for the metal will increase, according to The Wall Street Journal. The newspaper also reports that copper’s cheaper price will likely interest international investors such as China.

Gold mining stocks may be a smarter play than bullion

Fri, 12 Aug 2011 17:07:43 GMT

Many people have been investing in gold bullion in recent years but gold mining stocks may be investors' best bet.

The price of gold has skyrocketed in the past month, recently crossing the $1,800 per ounce threshold before retreating slightly. Much of this rise is due to uncertainty caused by the sovereign debt crisis and Europe and the temporarily resolved debt ceiling debate in the United States. However, SmartMoney says that investing in gold mining stocks may be a better move than simply investing in gold.

According to the news source, there were a number of opportunities over the past few years where investing in certain gold mining stocks would have led to a better return than investing in bullion. Indeed, at times such stocks can be had for next to nothing, such as following the financial crisis in 2008.

The news provider reports that silver mining stocks may be an even smarter move, as the whitish metal has doubled in value over the past year and even approached its record high of more than $50 per ounce. Gold has gone up about 25 percent over the same period.

Two mining exploration projects approved in Alaska

Thu, 11 Aug 2011 17:58:20 GMT

Federal regulators have given the go ahead for to mining projects in roadless areas in Alaska, which could potentially include gold exploration.

U.S. Forest Service Alaska Regional Forester Beth Pendleton said that approval was granted for the two exploration projects, which are located on Prince of Wales Island and Woewodski Island, respectively, reports the Juneau Empire.

"Last Friday USDA Under Secretary Harris Sherman approved exploration in inventoried roadless areas for both the Woewodski and Bokan Mountain mining exploration projects," Pendleton said in a release. "This approval will allow the companies conducting the exploration to create helicopter landing pads at drilling sites, and in the case of Woewodski, allow drilling equipment to be winched from some of its sites."

According to the statement, no roads will be constructed and site reclamation will occur after drilling has been finished.

The Empire reports that the approval was needed because of the Roadless Rule, which can impact projects in areas where there is no road access.

If anything of worth is found during the exploration, gold mining stocks, as well as copper mining stocks, could potentially be affected.

Gold exploration to commence in southern British Columbia

Thu, 11 Aug 2011 17:56:01 GMT

Gold exploration recently began slightly more than 200 miles to the north east of Vancouver, British Columbia.

The drilling will be completed over the next three months and is expected to reach a depth of 12,000 meters, according to a release. It is located in the Elk property in southern British Columbia. The gold on the property - which reportedly covers 16,700 hectares - is expected to include 500,000 ounces of gold resources.

Gold mining stocks should continue to rise as debt crises on both sides of the Atlantic play out. While America's Congress was able to agree on a deal to raise the debt ceiling, a number of countries in Europe - including Greece, Spain, Ireland and Italy - struggle with a sovereign debt crisis. These issues have combined to push gold up to record highs, with the yellowish metal now being sold for more than $1,650 an ounce.

Assessments have shown that the area in which this gold exploration will take place could be a good place for an open pit gold mine.