The broader U.S. equity markets plunged Thursday, as the Dow Jones Industrial Average (DJIA) dropped 349.96 points, or 2.9%, to 11,546.48 in mid-day trading. In doing so, the Dow reached a new low for 2011.
Widespread liquidation on Wall Street was fueled by escalating concerns over deteriorating economic conditions in the U.S. and Europe. Weekly U.S. jobless claims remained over the key 400,000 level this morning, while the European Central Bank (ECB) pledged to purchase sovereign bonds to stem the tide of the European debt crisis.
Gold initially climbed as the broader markets fell, but the yellow metal turned sharply lower after ECB President Jean-Claude Trichet stated that despite the economic weakness, the ECB is not ruling out the possibility of additional interest rate hikes. Trichet also noted that the European financial system has ample liquidity and support, and that inflation risks have not abated in recent weeks.
COMEX gold futures, per the December contract, hit a new all-time high of $1,684.70 per ounce this morning, but slid toward unchanged at $1,665 per ounce as of 11:55am ET.
Silver followed the yellow metal lower, as the COMEX September futures contract retreated $1.05 to $40.71 per ounce.
The few asset classes holding firm on Thursday were the U.S. dollar and U.S. Treasuries.
The U.S. Dollar Index (DXY) climbed 1.4% to 74.922 against a basket of foreign currencies.
The yield on the ten-year Treasury Note tumbled 16 basis points to 2.47%, its lowest level since November 2010.
Premier Gold Mines Provides Mid-Year Update
- Premier Gold Mines recently announced its intention to acquire Goldstone Resources.
- New discoveries have been made at Hardrock including the recently identified Tenacity South horizon where drilling has confirmed high-grade mineralization up to 10.89 grams per tonne (g/t) gold across 10.0 meters including 45.40 g/t across 2.0m and 37.49 g/t across 2.1m.
- Drilling at the Rahill-Bonanza joint venture project in Red Lake continues to define high-grade gold mineralization within the "2E Horizon" with visible gold seen in recent down-plunge drilling.
- Drilling at the PQ North Project has intersected numerous gold-bearing shear zones in addition to mineralized iron formation units with alteration and mineralization similar to the nearby Musselwhite Gold Mine.
- The company has three drill rigs active at the Saddle Project in the Carlin Trend. Several holes have intersected significant mineralization and a results update will be provided in the coming weeks.
