Gold was on the rise today despite a stronger US dollar. The yellow metal got a boost from a survey by consultancy Thomson Reuters GFMS, which said prices could reach US$1,800 per ounce before the end of the year, in part due to further easing by the world’s central banks.
Speaking of which, China today reported that its surplus surged 42.9 percent in June from a year earlier as imports rose only 6.3 percent, while exports surged 11.3 percent.
The data fuelled speculation that the government could easy its monetary policy further after slashing its deposit rates last week.
Yesterday China reported a decline in consumer price inflation to 2.2 percent last month from three month in May, giving the central bank room for stimulus.
Demand for gold was also supported from the results of this week’s meeting of euro zone finance ministers, which agreed the terms of a bailout for Spanish banks.
The euro zone’s fourth largest economy saw its borrowing costs fall sharply on the news with yields on its benchmark 10 year bonds fall 0.3 percent to 6.75 percent.
Gold traded at US$1,590/oz, up US$3 from Monday’s close. Other precious metals moved in the opposite direction with silver slipping 10 cents to US$27.24/oz and platinum falling US$6 to US$1,433/oz.
Toda’s top risers in the sector were:
Orosur Mining (LON:OMI), up 6 percent at 43.99 pence at midday
Highland Gold (LON:HGM), up 4.5 percent at 111.5 pence
Chaarat Gold (LON:CGH), up 3.5 percent at 21.72 pence
Centamin (LON:CEY), up 3.5 percent at 68.55 pence
The top fallers were:
Triple Plate Junction (LON:TPJ), down 9.5 percent at 1.65 pence at midday
Avocet Mining (LON:AVM), down 6.5 percent at 67.75 pence
SolGold (LON:SOLG), down 5.5 percent at 4 pence
Condor Gold (LON:CNR), down 4.5 percent at 93 pence
