PR: Gold Drops To $1,054 As US Dollar Gains Against Euro On Debt Concerns
Gold declined sharply yesterday and extended losses today as the US Dollar gained speed on concerns surrounding the debt situation in eurozone countries Greece, Portugal and Spain, which have pushed down Europe’s single currency to help the US Dollar Index, which measures the greenback’s strength against a basket of six currencies, to six month highs.
The yellow metal, which is seen as an alternative investment and moves inversely to the US Dollar, slipped to US$1,054/oz not long after recapturing the US$1,100/oz mark.
Other precious metals followed with silver and platinum spot prices declining to US$15.11/oz and US$1,478/oz respectively.
Holdings in the world’s largest traded gold-backed exchange fund SPDR fell by a further 5.79 metric tonnes to 1,104 tonnes after showing continuing declines in January.
All major mining stocks slipped into the red today. Platinum miner Lonmin (LSE: LMI) led the decline with a 4.5% loss. Fellow FTSE 100 constituents gold miner Randgold Resources (LSE: RRS) and silver and gold producer Fresnillo (LSE: FRES) followed, sliding 3.2% and 2.6% respectively.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) was down 1.7%.
Midcaps fell into the same pattern with silver producer Hochschild Mining (LSE: HOC) sliding to the bottom of the pile with a 5.7% decline. Aquarius Platinum (LSE: AQP) was close, shedding 5.3% and gold producer Petropavlovsk (LSE: POG) was down 3.3%.
Small caps also were in decline. Turkey focused gold miner Ariana Resources (AIM: AAU) slipped 19% on no news. African focused nickel and gold exploration and development junior Nyota Minerals (ASX&AIM: NYO) was down 10%, while Uzbekistan focused gold miner Oxus Gold (AIM: OXS) followed with an 8% slide.
Kazakhstan operating gold producer and copper developer Frontier Mining (AIM: FML) dropped 5% and Kyrgyzstan focused gold explorer and developer Chaarat Gold Holdings (AIM: CGH), South Africa and Botswana operating diamond miner Firestone Diamonds (AIM: FDI), Philippines focused gold producer Medusa Mining (AIM&ASX: MML), Western Australia operating Norseman Gold (AIM: NGL) and Fiji focused gold miner Vatukoula Gold Mines (AIM: VGM) all were down 4%.
Africa focused gold miner Pan African Resources (AIM: PAF) and Africa operating gold and platinum miner Goldplat (AIM: GDP) lost 3.5%.
