PR: Gold falls, but stays above $1,200 as markets decline on weak corporate data
Spot gold prices inched lower today following yesterday’s rally, which saw the yellow metal rise above US$1,210/oz on increased safe haven demand after rating agency Moody’s decided to downgrade Portugal’s bonds by two notches.
The move raised concerns over Europe’s debt situation and prompted investors to pour money into precious metals to avert risks.
Gold has recently posted new record highs at US$1,265/oz before retreating to below US$1,200/oz as investors were dumping the asset to make up the losses in equity markets, which were in decline on disappointing US economic data as well as concerns over Europe’s debt woes and further monetary policy tightening by China.
Gold slid to US$1,207/oz today, while silver and platinum declined to US$18.15/oz and US$1,521/oz respectively.
Major mining stocks were in decline today. Platinum miner Lonmin (LON:LMI) was at the bottom of the pile with a 1.6% loss. Randgold Resources (LON:RRS) declined 1.3% and Silver miner Fresnillo (LON:FRES) posted a small loss. African Barrick Gold (LON:ABR) was unmoved.
Specialty chemicals firm Johnson Matthey (LON:JMAT) was just above the opening level.
Midcaps followed. Silver producer Hochschild Mining (LON:HOC) declined 4%, while gold miner Petropavlovsk (LON:POG) lost 2.5% and Aquarius Platinum (LON:AQP) posted a small loss.
Turkey and Saudi Arabia operating gold explorer KEFI Minerals (LON:KEFI) outperformed the sector, climbing 5.5%. Turkey and Ethiopia operating gold miner Stratex International (LON:STI) and Africa operating gold miner GMA Resources (LON:GMA) moved with the majors, slipping 6.5% and 6% respectively.
