Review of the precious metals market for 20.10.09
By admin at 21 October, 2009, 7:24 pm
Dynamics
Tuesday, October 20 on the basis of volatile trading quotes on gold and silver showed a slight upward trend in prices against a background of strengthening U.S. dollar on the currency market FOREX, and also because of the negative dynamics 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 0.50 to 1058.60 dollars per troy ounce, quotes, silver futures fell 7 cents to 17.56 dollars per ounce.
Causes
Tuesday, October 20 quotes for precious metals market rose in early trading but then lost some captured positions on the background of strengthening the U.S. dollar in the FOREX market after unexpectedly gloomy statements by the representatives of the Bank of Canada and the release of the report of the Ministry of Commerce, as well as due to the negative dynamics of the stock sites, where major stock indexes finished the session in the red zone (Dow Jones industrial average - 10041.48 (-50.71), Nasdaq Composite - 2163.47 (-12.85), SP 500 - 1091.06 (-6.85)), and adjacent markets, namely the first eight days of declines in oil prices, and because of technical factors - there was some profit-taking, while traders who previously bought gold at lower prices, were selling it.
From news can note that in accordance with the assessment conducted in preparation in 2009 by Terrane Metals Corp. Project Mount Milligan in British Columbia, gold reserves in the forthcoming development of the deposit are estimated at 6 million ounces, is 31% more in comparison with the previous estimate. Mount Milligan - copper-gold porphyry deposit, located close to the surface, with dimensions of 2.5 km. x 1,5 km. x 400 m. The mine is planned to produce 44 million tons of ore per year. In the first place to work off the mineralizedzone, close to the surface and with a high content of metals. Validity of a new enterprise in the latest estimate has increased by 45% to 22 years. Capital expenditures are estimated at 915 million Canadian dollars (887 million dollars). Proved reserves of the Mount Milligan deposit are 274.6 million tons of ore with a copper content of 0,210% and 0,438 g. of gold /ton, probable reserves - 207,8 million tons with a copper content of 0,187% and 0,322 gold g. /t.
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.
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