Gold shares slid Friday, as the AMEX Gold Bugs Index (HUI) fell 1.7% to 505.48 in morning trading.
The sector was pressured by gold bullion, which turned lower after earlier holding steady near $1,520 per ounce. The yellow metal tumbled to an intra-day low of $1,505.40, before paring a small portion of its losses to trade close to $1,510 per ounce.
Weakness in the gold sector was fueled by a modest rally in the U.S. Dollar Index (DXY), which climbed 0.3% to 76.12 against a basket of foreign currencies.
One company in the gold sector under considerable pressure on Friday was AngloGold Ashanti (AU), which retreated $1.08, or 2.6%, to $40.38 per share. According to optionMONSTER.com, significant put buying in AU occurred on Thursday.
The firm noted that “6,170 August 39 puts traded, while there was no previous open interest. Almost all of those puts were bought, with the largest block of 4,575 picked up for $1.55, which was the ask price at the time.”
“There was no corresponding trading in the underlying shares, so this could be hedging of an existing long position against further declines. Or this could be a straight bearish bet, especially as they traded near the lows of the day. Those puts closed the day at $1.20.”
Other notable decliners in the gold sector included HUI components IAMGOLD (IAG) and Randgold Resources (GOLD). This morning, IAG and GOLD dropped 3.6% and 1.3%, respectively.
Platinum Group Metals Reports Acceptance of WBJV Mining Rights Application
Platinum Group Metals (PLG.NYSE AMEX) announcement that the South African Department of Mineral Resources (DMR) has accepted the Company’s application for a mining right for the WBJV Project 1 Platinum Mine. This development indicates that the company has complied with submission requirements and can now proceed with the completion and submission of its Environmental Impact Assessment (EIA) and Environmental Management Programme Report.
On March 28, the emerging platinum producer received the consent of the South African Department of Mineral Resources for the company's detailed underground development plans and environmental management program, including the mining of a bulk sample. Civil engineering contractors are mobilizing and development is advancing on the project, which is strategically located on the world’s most prolific platinum-producing belt.
Platinum Group Metals is also conducting exploration work on its Canadian properties located near Thunder Bay, Ontario. Full Platinum Group Metals News Release.
PLATINUM TO FOLLOW SILVER?
