Time to smelt?
posted on
Oct 22, 2010 04:12PM
(Edit this Message from the "Fast Facts" Section)
I wonder if it is time they seriously consider taking a load of concentrate to a smelter...
>G-20 meeting of finance ministers and central bank governors in >U.S. dollar index was up 0.1% at $77.52, while the euro was down slightly to $1.39 against the dollar. The spot gold price was down $1.70, according to Kitco's gold index.
As EverBank World Markets' assistant vice president Mike Meyer pointed out, one of the main drivers behind the U.S. dollar at the moment is uncertainty over the outcome of the G-20 meeting this weekend.
Meyer echoed the thoughts of many investors when he said, "I just don't understand how proclamations of a strong dollar, or at least one that isn't weakening, can even be discussed at a time when the Fed is talking about adding quantitative easing."
On Thursday, gold prices fell as the jobs report came out better than expected, a number of positive earnings reports emerged and the broader stock indices rose. Stocks ended higher yesterday after a volatile trading session.
Initial weekly claims declined by 23,000 to 452,000 in the week ended Oct. 16, from the week before. However, the extent of the decline was amplified by the Labor Department's upward revision of the previous week's figure to 475,000 from 462,000. Analysts on average predicted that initial claims would fall by 7,000 to 452,000, according to Briefing.com.
"With risk appetite and investor confidence showing signs of returning, there is the risk of further profit taking in both gold and silver; however with background dollar weakness lurking, investor concerns about the long-term inflationary implications of QE (quantitative easing) and physical demand at its seasonally strongest, we expect dips to remain well supported and viewed as a buying opportunity," FastMarkets.com research analyst James Moore said in a daily report.
In a daily report, BGC Financial technical strategist Roger Volz said gold has moved into the beginning of a 21 to 55 day corrective phase below $1,346 with its next downside continuation line at $1,310.
, a risky but sometimes more profitable way to >Barrick Gold (ABX) was up 0.4% to $45.63, and >Newmont Mining (NEM) was slipping 0.1% to $59.16 and http://moneycentral.msn.com/detail/stock_quote?Symbol=FCX">Freeport-McMoRan Copper & Gold (FCX) was down 2.4% to $94.12.