Gold prices bounced back today following yesterday’s sharp fall with spot gold prices rising slightly to get back above US$1,130/oz after the US Dollar eased against the euro after climbing on China’s yesterday’s monetary policy decisions, which toppled precious metals along with other commodities.
China’s central bank upped the reserve requirements for banks by 0.5% to 15% of their deposits shortly after increasing bank-reserve ratios and interbank rates to curb economic activity and prevent the economy from overheating to cause oil, precious and base metals to slide while the US dollar strengthened.
Gold spot prices fell to US$1,124/oz after reaching above US$1,160/oz. Silver and platinum also improved, rising to US$18.41/oz and US$1,570/oz respectively.
Miners retreated with platinum producer Lonmin (LSE: LMI) leading the way in the FTSE 100 with a 1.6% slide. Gold miner Randgold Resources (LSE: RRS) declined 1.2%, while fellow blue chip silver miner Fresnillo (LSE: FRES) was flat, as was specialty chemicals firm Johnson Matthey (LSE: JMAT).
Midcaps followed with the exception of Aquarius Platinum (LSE: AQP), which posted a small gain. Silver producer Hochschild Mining (LSE: HOC) was at the bottom of the pile with a 2.6% decline, while gold miner Petropavlovsk (LSE: POG) was down 1.5%.
Kazakhstan operating gold producer and copper developer Frontier Mining (AIM: FML) and Brazil focused gold miner Horizonte Minerals (AIM: HZM) surged 14% to lead the juniors. African focused nickel and gold exploration and development junior Nyota Minerals (ASX&AIM: NYO) followed, tacking on nearly 7%.
South Africa and Botswana operating diamond miner Firestone Diamonds (AIM: FDI) and Latin American precious metal miner Minera IRL (AIM: MIRL) rose 5% and 4.5% respectively.
Iran focused gold explorer Persian Gold (AIM: PNG) and South Africa focused emerging platinum producer Platmin (AIM: PPN) headed in the opposite direction, shedding 6% and 4.5% respectively. Lesotho operating diamond miner Kopane Diamond Developments (AIM: KDD) slipped 4%.
