Gold futures plunged Wednesday, with the COMEX February 2012 contract settling down by $76.20, or 4.6%, at $1,586.90 per ounce. The yellow metal reached an intra-day low of $1,565.70 per ounce before paring its losses as the U.S. Dollar Index backed off its intra-day high.
This marked the lowest closing level for a most-actively traded contract since mid-July. On an intra-day basis gold futures fell to $1,535.00 on September 26, however, but settled that day at $1,594.80 per ounce.
Silver futures plunged alongside gold, as the COMEX February 2012 contract dropped $2.33, or 7.4%, to $28.94 per ounce. Platinum tumbled $66.00, or 4.4%, to $1,426.30 per ounce, while palladium retreated $44.55, or 6.7%, to $619.60 per ounce.
Commenting on the rout in precious metals, Jeff Wright – metals and mining analyst at Global Hunter Securities – stated that “It’s the never-ending European debt crisis still playing out, combined with some year-end profit-taking and a weakening of the euro. A number of funds are rotating into money-market funds in the U.S. It’s safe and they don’t have volatility.”
Premier Gold Expands High-Grade Zones at Trans-Canada Project
- Four zones are currently being drilled including the HGN, F2, North Shear and Key Lake (West Extension)
- The HGN and F2 zones are located proximal to the historic mine workings and remain open both up and down plunge
- The North Shear is a new discovery located between the Hardrock and Little Long Lac Mines and the West Extension target is a high grade target along strike from the Key Lake deposit that was acquired through Premier's acquisition of Goldstone Resources earlier in 2011
- These zones have characteristics similar to the high-grade past producing Little Long Lac (600,000 ounces gold produced at a grade of 11.7 grams per tonne) and Leitch (847,900 ounces produced at a grade of 31.5 grams per tonne) Gold Mines that are located on the Trans-Canada Project
