PR: Gold poised as fearful investors worry over European banks
Gold prices are poised just below record levels, as fear once again reared its head in the European banking sector.
Investors are particularly cautious as doubts over the sustainability of national debt among Eurozone members are again resurfacing.
After making an intraday high at US$1,264/oz, the December gold futures contract on the Chicago Mercantile Exchange, was last trading at US$1,256/oz.
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Stratex International’s latest JV with Teck Resources in line with “Find it, Prove it, Move it” modelNorseman Gold posts A$20.4 million maiden profit, eyes acquisitionsMinera IRL plans follow-up drilling at new zone of Ollachea gold project“As the economic outlook continues to be volatile gold will remain a very attractive investment”, Fairfax Securities mining expert John Meyer said.
In a daily market report, the analyst highlighted that investors are seeking a safe-haven investments.
Gold is one of the most widely recognised safe-have assets, as it usually moves inversely to stock markets, and crucially the US Dollar.
The yellow metal was trading at all time highs in early summer when the concerns over the health of Europe’s banks were at their peak, declined with investors preferring to invest in the US dollar. It strength has continued for the past two months, rallying from below US$1,200/oz to nearly reach its record highs of US$1,265/oz.
The other precious metals, silver and platinum, have also been strong trading at $20.00/oz and US$1,557 respectively.
Among London’s major mining stocks, African Barrick Gold (LON:ABG) was one of the top performers, rising 1.25% to 606.6p.
Mexican silver miner Fresnillo (LON:FRES) was also particularly strong, climbing just under 1.5% to trade at £11.16 per share.
Johnson Matthey (LON:JMAT), the autocatalyst manufacturer which is closely tied to the platinum market, advanced 1.42% to £17.18.
Randgold Resources (LON:RRS) shares added almost 1% to £60.85, similarly Lonmin (LON:LMI) also gained nearly 1% to £16.01
In the mid-cap sector, Hochschild Mining (LON:HOC) was the strongest, the diversified silver miner climbed 2.19% to 367.9p.
Russia-based gold miner, Petropavlovsk (LON:POG) advanced 2% to £11.23, while Aquarius Platinum (LON:AQP) rose by almost 1%, and were last trading at 304.5p.
At the junior end of the market, Mariana Resource (LON:MARL) was particularly strong, jumping over 13% to trade at 29p per share.
