PT: Gold Price Easing Slightly Following Overnight Strength, Futures
Overnight the yellow metal advanced once again after coming under pressure towards the end of the day in London. Through the afternoon in America and later in Asia, gold found support, rising to an intraday high around $1,011.
In London this morning the futures market has seen some light selling, as speculators continue to take profits, capping the gold rally. The December gold contract is being exchanged at $1,008 after revisiting yesterday’s high early in the session.
Several reports this morning suggest that a further rally in gold would come under pressure as it progressed towards last year’s all time high. Recent weeks have seen investors flock to gold, prices have rallied as high as $1,025 as futures approached all time highs. With today’s momentum building, gold will have achieved it strongest quarterly performance in over eighteen months.
Elsewhere, some analysts insisted that a gradual consolidation period would benefit the gold market. Investors will no doubt be watching any further developments with intent.
On the London Stock Exchange, gold equities have generally been mixed. International gold producer Randgold Resources (LSE: RRS) reversed yesterday’s gains, sliding 73p per share to trade at £43.03.
Canada based Yamana Gold (LSE: YAU) led the FTSE 250 gold stocks, rising 2% while Petropavlovsk (LSE: POG) was fractionally lower, losing just 2 pence.
In London the junior market was led by Pacific-Rim focused exploration play Solomon Gold (AIM: SOLG). Solomon Gold holds some of the most prospective virgin pacific rim territory available for giant copper gold deposits. Solomon shares rose 10% this morning.
Elsewhere, fellow Asia-Pacific explorer, Philippines focused Metals Exploration (AIM: MML) and South American based explorer Mariana Resources (AIM: MARL) both gained 4.5%.
Canada based developer Cluff Gold (AIM: CLF, TSX: ) rose almost 3% this morning. Cluff appointed Pater Gardner new chief financial officer, the former CFO of Alexander Mining PLC (AIM: AXM).
European Gold (AIM: EGU) rose 2.5%. Middle Eastern operating and multi-listed Centamin Egypt (AIM: CEY, TSX: CEE, ASX: CNT) and Pan African Resources (AIM: PAF) both gained 2%.
A number of the AIM market's other gold stocks were slightly weaker this morning.
Kazakhstan operating copper-gold focused developer Frontier Mining (AIM: FML) slipped 5% following a series of volatile trading sessions. African focused GoldPlat (AIM: GDP) fell 4%, while Leyshon Resources (AIM: LEY) and Norseman Gold (AIM: NGL) both dropped over 3%.
