Review of the precious metals market for 19.10.09
By admin at 20 October, 2009, 6:25 pm
Dynamics
On Monday 19 October to the results of auctions of the quotation for gold and silver have shown upward trends in price against the backdrop of the fall of the dollar in the currency market FOREX, and also because of the positive trend of the stock sites and adjacent markets, and due to technical factors.
As a result of trading on the COMEX, division of the New York Mercantile Exchange (NYMEX), quotes gold futures rose by 6.60 to 1058.10 dollars per troy ounce, quotes, silver futures rose 20 cents to 17.62 dollars per ounce.
Causes
On Monday, October 19 quotes for precious metals market showed upward trends in price against the backdrop of the fall of the dollar in the FOREX market due to rising risk appetite, based on the optimism about the prospects for reviving the global economy, but also because the positive trend of the stock sites, where the quarterly reports pushed major indexes to update the annual peaks - so, Dow Jones industrial average was 10092.19 (96.28), Nasdaq Composite - 2176.32 (19.52), SP 500 - 1097.91 (10.23), and adjacent markets, namely new annual highs in the oil market - about 80 dollars per barrel, and because of technical factors - levels of support for the graphics survived and were the starting point for growth. Quotes silver futures rose after the gold - one of the main causes of rising prices for copper.
From the news it may be noted that the company Barrick Gold Corp (Canada) has entered into an agreement with Xstrata Copper Chile SA, a subsidiary to Swiss Xstrata plc, to acquire for 465 million dollrov 70% of Chilean copper exploration project -gold deposits of El Morro in Chile. Developing a project of El Morro is located in the Atacama region, and, according to company Xstrata, has the resources in categories measured by the established 8,3 million ounces of gold and copper, 6.3 billion pounds (2857 tonnes). Barrick Gold in Chile already owns two major projects on development of deposits: 100% Pascua-Lama and 50% of Cerro Casale. The new project is located 70 km north of the Pascua-Lama and some 110 km south of Cerro Casale. The remaining 30% of the El Morro project owned by New Gold Inc (Canada), which has the first right to buy 70% of the project, which it can realize up to 11 January 2010
What to expect?
According to many analysts and traders, the price of gold may continue to grow and set new records next week against the possible fall of the dollar in the foreign exchange market, FOREX, and also because of the positive trend of the stock markets and adjacent areas.
Why worry?
Many analysts recommend to pay attention to record-high net speculative long positions, open to gold, the closing of which causes great concern about the possible strong downward correction.
Index of the Frankfurt Stock Exchange Xetra DAX rose 11.78 points, the index of the London Stock Exchange FTSE 100 rose 0.22 points
Forex on the European session
The desire of investors to take profits supported not too optimistic statistics from the U.S.
In the second echelon are allocated shares of Polyus Gold, which show striking growth
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