Gold dipped early Tuesday morning, falling $2.50 to $1,602.30 per ounce. If the yellow metal closes lower on the day, it would mark the end of an eleven-day winning streak – the longest since January of 1980. Silver, which has appreciated 16.1% in the month of July, followed gold lower – declining $0.26 to $40.27 per ounce.
The research team at TD Securities, in its “Commodities Weekly” report, highlighted their bullish outlook for gold prices: “Gold should move higher throughout the summer as investors may not want to hold large greenback positions at a time when the euro and the US dollar are looking unstable. After all, Europe’s fiscal problems have not been permanently solved by any stretch of the imagination and the US still faces a possible default, which makes gold as a safe-haven investment more alluring.”
Gold has been supported by the fact that negotiations between President Obama and Congressional Republicans to raise the $14.3 trillion debt ceiling by the August 2 deadline have not yet resulted in an agreement. While a default remains unlikely, gold has been supported by investors seeking a safe haven and an insurance policy in the event a compromise is not reached.
Stock prices were set to open higher on Wall Street with S&P 500 stock futures gaining 9.40 to 1,309.80.
Platinum Group Metals Advancing to Production
The start of underground tunneling is scheduled for late July 2011. Full commercial construction is budgeted at $443 million and is expected to involve project loan financing once a full mining rights are approved and concentrate off-take terms are established. Full Platinum Group Metals News Release.
- In March 2011, Platinum Group Metals received the consent of the South African Department of Mineral Resources (DMR) for the Company’s plan for underground development of decline access for Project 1 and related environmental management program.
- In April 2011, the Company filed a mining right application and social and labor program with the DMR for the Project 1 Platinum Mine. This application was later accepted for processing by the DMR.
- In May 2011, construction for Phase 1 on surface infrastructure, excavation and construction began – it is proceeding safely and is on schedule.
- In early July 2011, the Company announced that underground mining contractor JIC Mining Services was awarded the contract for Phase 1 underground development of twin 1,200 meter central decline tunnels into the Project 1 platinum deposit for the purposes of retrieving a bulk sample and information for further mine design. JIC is now mobilizing to site.
