Gold futures turned modestly lower in early afternoon trading on Monday, fueled by a broad-based sell-off in financial markets and strength in the U.S. dollar.
COMEX gold futures, which stabilized above $1,680 for most of the morning, fell $13.00 to $1,670.00 per ounce as of 12:40pm ET.
The U.S. Dollar Index (DXY) advanced 0.6% to 77.031 this afternoon, while the euro currency dropped 0.7% to 1.3775 against the greenback.
Phil Streible, a senior market strategist at MFGlobal, presented a bearish case for the yellow metal in a recent note to clients. Gold’s “slow grind up” over the past two weeks “makes me think gold prices could correct,” he wrote. ”If it takes out $1,650 then $1,605 is the target.”
Claude Demonstrates Growth Potential of Amisk Gold Project
CLAUDE RESOURCES (CRJ.TSX, CGR: AMEX) provided an update from its 2011 exploration program at the 15,400 hectare Amisk Gold Project in northeastern Saskatchewan, Canada. The Amisk Gold Project is located 20 kilometers southwest of Flin Flon, Manitoba and is a 65:35 Joint Venture between Claude and St. Eugene Mining Corporation. Claude is the operator of the Joint Venture.
The Canadian-based gold producer reported that 18 holes in total and 5,500 meters have been drilled to date in 2011, with assays returned for 14 of the holes. The program tested from surface to in excess of 250 meters depth and was designed to expand the limits of the Amisk Gold Deposit as well as infill within the northern and eastern portion of the deposit. Full Claude Resources Press Release.
The Canadian-based gold producer reported that 18 holes in total and 5,500 meters have been drilled to date in 2011, with assays returned for 14 of the holes. The program tested from surface to in excess of 250 meters depth and was designed to expand the limits of the Amisk Gold Deposit as well as infill within the northern and eastern portion of the deposit. Full Claude Resources Press Release.
Highlights:
* 1.88 grams per tonne (g/t) gold and 12.4 g/t silver over 24.61 meters in hole AL-11-301.
* 0.51 g/t gold and 2.5 g/t silver over 89.75 meters in hole AL-11-306.
* 14 drill holes successfully confirmed continuity of gold mineralization within the northern and eastern portion of the deposit as well as demonstrated the potential for expansion to the east and southeast.
CLAUDE VS. S&P500, XAU
Brian Skanderbeg, Vice-President Exploration:
“The 2011 Amisk drill program successfully confirmed mineralization within the current resource model and demonstrates the potential for growth."
Paolo Lostritto, National Bank Financial:
“We reiterate our Outperform rating and C$3.30 target on Claude Resources shares...Catalysts continue to be:1) Madsen underground drill results, 2) Seabee shaft deepening coupled with Santoy ramp up, and 3) more Amisk drilling."
INTERACTIVE CLAUDE RESOURCES CHART
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