Gold declined sharply today, slipping all the way down to US$1,100/oz just two days after standing above US$1,130/oz as the US Dollar extended gains today on a weaker euro, which got hit by Greece’s debt situation, and yesterday’s declines in global stock markets after quarterly reports from Bank of America (NYSE: BAC) and Morgan Stanley (NYSE: MS) missed market expectations, boosting the greenback’s appeal as a safe haven for investors.
Gold, which is seen as an investment alternative to the US Dollar, was supported by a fall in bond yields in the US.
Meanwhile, platinum retreated from recent highs that it was able to reach due to the anticipated demand from new US exchange traded funds, causing Bank of America Merrill Lynch to up its price forecast for the metal to US$1,750/oz in 2010 and US$2,000 in 2011.
Today, gold declined to US$1,104/oz, while silver and platinum declined to US$17.67/oz and US$1,605/oz respectively.
Mining stocks were mixed in London today.
Platinum miner Lonmin (LSE: LMI) led the sector in the FTSE 100 with a gain of nearly 2%. Gold miner Randgold Resources (LSE: RRS) declined marginally, while silver producer Fresnillo (LSE: FRES) was down 2.3%.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) posted a small gain.
Gold miner Petropavlovsk (LSE: POG) led the midcaps with a 3.6% advance, while Aquarius Platinum (LSE: AQP) declined marginally and silver producer Hochschild Mining (LSE: HOC) lost 2%.
Kazakhstan operating gold producer and copper developer Frontier Mining (AIM: FML) was the top performer among the small caps with a 6% climb.
Most other juniors were in decline. African focused nickel and gold exploration and development junior Nyota Minerals (ASX&AIM: NYO) and Uzbekistan focused gold miner Oxus Gold (AIM: OXS) were in correction, sliding 7% and 6% respectively. Kyrgyzstan focused gold explorer and developer Chaarat Gold Holdings (AIM: CGH) and Fiji focused gold miner Vatukoula Gold Mines (AIM: VGM) both lost more than 5%. Africa operating gold miner GMA Resources (AIM: GMA) declined 4%. http://www.proactiveinvestors.co.uk/companies/news/12472/gold-falls-to-1104-on-stronger-us-dollar-bofa-merrill-lynch-ups-platinum-price-forecasts-12472.html
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