Precious metals futures settled lower on Tuesday amid modest strength in the U.S. dollar and ongoing sovereign debt concerns in Europe.
COMEX gold futures, per the February contract, closed down by $13.80, or 0.8%, at $1,664.50 per ounce – thereby negating yesterday’s $14.30 advance.
Silver futures for February delivery on the COMEX finished with a loss of $0.30, or 0.9%, at $31.98 per ounce. The decline represented exactly half of yesterday’s $0.60 rise.
Gold and silver came under pressure as the euro currency slid as much as 0.5% to 1.2954 against the U.S. dollar this morning. However, in afternoon trading the euro recovered the majority of its decline against the greenback.
Other precious metals finished in the red as well, with platinum retreating 0.9% to $1,547.30 per ounce and palladium slipping 1.3% to $679.95 per ounce.
Cyclical commodities were mixed on Tuesday, as crude oil dropped 0.6% to $98.95 per barrel while copper advanced 0.2% to $3.81 per pound.
Platinum Group Metals Moves Forward Toward Production
In August, Platinum Group Metals entered into a mandate letter with a consortium of financial institutions – including Barclays Capital and the Standard Bank of South Africa Limited – for a $260 million project finance loan to enhance the development of the Western Bushveld Joint Venture (WBJV) Project 1 Platinum Mine. Full Platinum Group Metals News Release.
- Preparation of detailed banking documents for the senior loan facility with the mandated syndicate of banks is ongoing
- The completion of this documentation, due diligence, hedging establishment and off take negotiations are expected to be completed during Q1 and Q2 of calendar 2012
- Project 1 is advancing towards a 275,000 ounce per year platinum, palladium, rhodium and gold planned production profile
- Full commercial construction is budgeted at $443 million and initial commercial production is scheduled for late 2013
