GOLD PRICE NEWS – The price of gold oscillated between gains and losses on Tuesday as financial markets consolidated following yesterday’s broad-based rally. The spot gold price held in a narrow range between $1,728 and $1,736 per ounce in overnight trading, while the U.S. Dollar Index stabilized near unchanged at 80.896. The SPDR Gold Trust (GLD), the world’s largest gold ETF and a proxy for the price of gold, inched lower by $0.11 to $167.76 per share.
Silver held steady alongside the gold price, near the flatline at $33.16 per ounce. Among other precious metals, platinum futures dipped 0.3% to $1,579.50 per ounce while palladium slid by 0.6% to $641.40 per ounce. As for cyclical commodities, copper futures were unchanged at $3.53 per pound while crude oil fell 1.0% to $88.36 per barrel.
Gold stocks gave back a portion of yesterday’s gains as the Market Vectors Gold Miners ETF (GDX) retreated by $0.47, or 1.0%, to $47.30 per share. The Market Vectors Junior Gold Miners ETF (GDXJ), comprised of many small- and mid-cap gold stocks, moved lower by $0.13, or 0.6%, to $22.07 per share.
Barrick Gold (ABX), the world’s largest gold producer, dropped by 0.3% to $34.19 per share. Newmont Mining (NEM), the largest U.S.-based gold miner and the only gold stock included in the S&P 500 Index, declined by 0.9% to $46.37 per share.
(Rankings and analysis on nearly every stock in the GDX and GDXJ at GoldAlert Pro – http://pro.goldalert.com)
Gold prices showed a muted response this morning to the latest U.S. economic report, which showed that Housing Starts in October rose to a seasonally-adjusted level of 894,000 – well above the 840,000 consensus estimate among economists.
Looking ahead, investors will keep a close eye early this afternoon on Ben Bernanke, who is scheduled to speak at the Economic Club of New York. There, the Federal Reserve Chairman will deliver a speech enetitled “The Economic Recovery and Economic Policy” at 12:15pm ET.
Jacob Oubina, U.S. economist at RBC Capital Markets, wrote in a note to clients that Bernanke is “obviously going to say the Fed will be as accommodative as possible for the foreseeable future, but he’s not going to provide details on what the extension of (Operation) Twist will look like.”
Premier Gold Mines Reports Encouraging Results at Rahill-Bonanza
Premier Gold Mines holds a 49% stake in Rahill-Bonanza through a joint venture with Red Lake Gold Mines Limited (RLGM) – which serves as operator of the Project, holds a 51% stake, and is an affiliate of Goldcorp Inc. The Project is strategically located in the heart of the main Red Lake "Mine Trend" between the Red Lake Gold Mines complex to the east, and the Cochenour ( Bruce Channel ) Project to the west. The property is being explored from both surface and underground. Full Premier Gold Mines Press Release.
- PG12110 tested the down-dip extension of the past-producing Wilmar Mine returning an intersection of 4.01 grams per tonne gold (g/t Au) across 20.5 meters (m), or 0.12 ounces per ton (oz/t) across 67.3 feet, including 11.51 g/t Au across 3.0 m (0.34 oz/t across 9.8 feet)
- PG12112 returned an interval of 1.52 g/t Au across 126.0 m (0.04 oz/t across 413.4 feet) with higher grade intervals of up to 27.08 g/t Au across 1.0 m (0.79 oz/t across 3.3 feet)
- Multiple gold-bearing horizons, in addition to those previously announced, have been intersected in the tram; eight closely-spaced holes have been drilled to test one of these structures hosting visible gold (assays pending)
- The regional drill program, consisting of flat holes drilled at regular intervals and up to 5000 feet (1,524.0 meters) in length has commenced with the first hole having been completed
