Gold futures rallied Monday amid widespread strength in many U.S. dollar-denominated asset classes. COMEX gold futures, per the December 2011 contract, climbed $35, or 2.1%, to settle at $1,670.80 per ounce.
Later this afternoon in electronic trading, gold futures reached $1,675.60.
The Wall Street Journal noted that Credit Agricole analyst Robin Bhar wrote in a note to clients that resurgent Asian physical demand is helping to support the gold market. ”Intraday price volatility has subsided sharply, a major factor in giving the bulls enough confidence to re-enter the market against a background of very active physical buying,” Bhar noted.
He later added that gold bar supply is tightening in Hong Kong and Singapore, while premiums are now at their highest level since February of this year.
Silver futures jumped alongside the yellow metal, with the COMEX December 2011 contract advancing $0.99, or 3.2%, to $31.98 per ounce. Platinum futures rose 2.1% to $1,525.10 per ounce, while palladium surged 4.9% to $614.30 per ounce.
The U.S. Dollar Index, a trade-weighted composite of the greenback against a basket of the world’s other leading currencies, slid 1.5% to 77.593. The euro – the largest component of the Index – rallied 1.9% to 1.3641 against the dollar in afternoon trading.
Premier Gold Hits High-Grade at Trans-Canada
The PEA will consider several possible options available to Premier in assessing how best to optimize key assets in the Trans-Canada Project – including the Hardrock, Brookbank, Key Lake and Kailey Deposits. The JDS team of experienced mining professionals will augment Premier's exploration expertise to provide, in 2012, a clear economic framework and vision to advance the project toward development. Full Premier Gold Mines Press Release.
- Initial follow-up drilling returned some of the highest recorded assays, resulting in multiple ounce intercepts in several of the target areas.
- The Trans-Canada Project is host to several past-producing mines which collectively produced more than 4 million ounces of gold from depths within 600 meters of surface between 1938 and 1968.
- The Hardrock Deposit is host to a NI43-101 compliant mineral resource estimate that includes 3.6 million gold resources.
