Gold futures rebounded from substantial losses on Tuesday as the U.S. dollar turned lower against the euro currency this afternoon.
COMEX gold futures for February 2012 delivery – the most actively-traded contract – fell to as low as $1,705.70 per ounce this morning amid widespread selling in precious metals. However, the yellow metal bounced back to close with just a $2.70, or 0.2%, loss at $1,731.80 per ounce,
Silver futures followed a similar path to that of gold, with the COMEX February 2012 contract sliding to an intra-day low of $31.65 per ounce early in the day. Gold’s sister precious metal, however, finished firmly in positive territory – by $0.37, or 1.2%, at $32.74 per ounce.
Gold and silver stocks turned sharply higher as precious metals rebounded, with the Philadelphia Gold & Silver Index (XAU) jumping 2.1% to 205.61.
The euro initially dropped to 1.3334 amid renewed sovereign debt concerns on Tuesday, but climbed back above the 1.34 level this afternoon. The euro received a boost from comments by U.S. Treasury Secretary Tim Geithner, who stated that he was “very encouraged” by the progress European policymakers have made in addressing the debt crisis. Geithner’s vote of confidence came following meetings with ECB President Mario Draghi and Bundesbank chief Jens Weidmann.
Extorre Reports Significant Increase in Gold Resources
The new resources will form the basis of an updated mining and economic study for the project, which is scheduled for release during the first quarter of 2012. Extorre will evaluate the potential for a mine development at a larger scale (1,000-1500 tonnes per day). The study will be at a confidence level sufficient for the Board to make a financing and mine development decision. Full Extorre Gold Mines Press Release.
- The new resource estimate is based on all drilling data available as of October 10, 2011 and includes maiden contributions from four new mineralized zones: Zoe, Martina, Carla, and Nini.
- Indicated and Inferred resources increased by 46% and 166%, respectively, compared to the previous resource estimate.
- Considerable potential for additional mineralization remains at the majority of the veins included in the resource, both along strike and at depth.