Gold reclaimed the $1,800 per ounce level Friday afternoon as the majority of the commodities complex rebounded from earlier weakness.
COMEX gold futures, per the December contract, initially slid toward $1,765 following release of Ben Bernanke’s speech after the Fed Chairman did not make any mention of QE3.
However, gold quickly bounced back, reaching an intra-day high of $1,812.60 per ounce at approximately 2:30pm ET and holding onto the majority of its gains later this afternoon.
Gold equities followed the yellow metal higher, with the AMEX Gold Bugs Index (HUI) reversing its earlier decline to advance 1.1% to 588.74.
Strength in gold coincided with weakness in the U.S. Dollar Index (DXY), which relinquished its earlier gains to trade lower by 0.6% at 73.81 against a basket of foreign currencies.
Platinum Group Metals Secures $260 Million Loan
An Updated Feasibility Study published for the WBJV Project 1 Platinum Mine in October 2009 planned for a steady state production rate of 275,000 4E ounces (platinum, palladium, rhodium and gold) per year at a capital cost of $443 million. Of the required capital cost, a fully funded Phase 1 $100 million surface establishment and underground decline development program is already in progress. Full Platinum Group Metals News Release.
- The $260 million senior loan includes a term of nine years, an additional working capital facility up to $25 million, and a standby subordinate loan facility for cost overruns, if any.
- The proposal includes a hedging strategy that maximizes the hedging of byproducts such as palladium, gold and nickel - thereby minimizing the ounces of platinum hedged over the loan life.
- The lending group of banks has a global presence, direct platinum industry experience and includes two of South Africa's major banks. Each bank has a defined role in order to assist with efficiency and a timely closing, currently expected by November 30, 2011.
