Dynamics On Thursday, February 4 quotes for gold and silver closed with a large decrease in value against the strengthening U.S. dollar on the foreign exchange market, FOREX, and also because of the negative dynamics of neighboring markets and stock exchanges, and technical reasons.
According to the results of trading on the COMEX, division of the New York Mercantile Exchange (NYMEX), quotes gold futures fell to 49.00 to 1063.00 dollars per troy ounce, quotes, silver futures fell 97 cents to 15.35 dollars per ounce.
Causes On Thursday, 4 February futures on precious metals have completed trades with a decrease in the price of the following factors: 1 - strengthening of the dollar in the FOREX market amid falling risk appetite after economic makrostatistiki and news (as reported by the Ministry of Labor, the number of initial applications for unemployment benefits rose by 8000 to 480 000), 2 - Economic News - news about the increasing concerns regarding the fact that Greece, Portugal and Spain could face difficulties when trying to regain control of their budgets, thereby jeopardizing the fragile economic recovery the euro zone, only increased the pressure on gold, 3 - negative dynamics of stock exchanges, where the major U.S. stock indexes closed in negative zone against the disappointing financial statements of some companies and economic news (Dow Jones industrial average - 10002.18 (-268.37 , or -2.61%), Nasdaq Composite - 2125.43 (-65.48, or -2.99%), SP 500 - 1063.11 (-34.17, or -3.11%)), 4 - for technical reasons - Gold futures overcame a strong technical resistance in the area 1100.00 U.S. $ per troy ounce, which prompted investors to take profit on many fronts, 5 - reduction in adjacent markets, namely the fall in prices on the oil market. On the background of the reluctance of investors to risk prices of other precious metals at auction in New York also fell.
From the news it may be noted that Yamana has decided on the further development of its gold project in Brazil, Ernesto, this decision was based on positive results of a feasibility study and to increase the resources on the results of exploratory drilling. The project is represented by two fields. For the primary calculations, the duration of mining is estimated at seven years, with current reserves of gold, 710 thousand ounces (22 tons), established resources are estimated at 854 million ounces (25 tonnes). Construction of the mine to begin in mid-2010. And production - at the end of 2012. Expected capital expenditure of 116 million dollars. Operating expenses should make 427 dollars an ounce. Deposit Pau-a-Peak is located 62 km. to the south of the deposit and available for Ernesto road. Two fields are treated as a single project with excellent infrastructure will be developed in two mines, but the processing of ore will be produced at one of the gold plant.
What to expect? Traditional purchase of precious metals in the early years of the funds, the general improvement in investor sentiment, as well as lowering the U.S. dollar will provide sustained support for quotations of gold and silver. However, the situation could change dramatically if the dollar will resume its strengthening, as the inverse correlation between the dollar and the prices of precious metals continues.
Why worry? volatile changes in the currency market may be reflected in the sharp fluctuations of prices for precious metals.
Review of the precious metals market for 04.02.10
Dynamics On Thursday, February 4 quotes for gold and silver closed with a large decrease in value against the strengthening U.S. dollar on the foreign exchange market, FOREX, and also because of the negative dynamics of neighboring markets and stock exchanges, and technical reasons.
According to the results of trading on the COMEX, division of the New York Mercantile Exchange (NYMEX), quotes gold futures fell to 49.00 to 1063.00 dollars per troy ounce, quotes, silver futures fell 97 cents to 15.35 dollars per ounce.
Causes
On Thursday, 4 February futures on precious metals have completed trades with a decrease in the price of the following factors: 1 - strengthening of the dollar in the FOREX market amid falling risk appetite after economic makrostatistiki and news (as reported by the Ministry of Labor, the number of initial applications for unemployment benefits rose by 8000 to 480 000), 2 - Economic News - news about the increasing concerns regarding the fact that Greece, Portugal and Spain could face difficulties when trying to regain control of their budgets, thereby jeopardizing the fragile economic recovery the euro zone, only increased the pressure on gold, 3 - negative dynamics of stock exchanges, where the major U.S. stock indexes closed in negative zone against the disappointing financial statements of some companies and economic news (Dow Jones industrial average - 10002.18 (-268.37 , or -2.61%), Nasdaq Composite - 2125.43 (-65.48, or -2.99%), SP 500 - 1063.11 (-34.17, or -3.11%)), 4 - for technical reasons - Gold futures overcame a strong technical resistance in the area 1100.00 U.S. $ per troy ounce, which prompted investors to take profit on many fronts, 5 - reduction in adjacent markets, namely the fall in prices on the oil market.
On the background of the reluctance of investors to risk prices of other precious metals at auction in New York also fell.
From the news it may be noted that Yamana has decided on the further development of its gold project in Brazil, Ernesto, this decision was based on positive results of a feasibility study and to increase the resources on the results of exploratory drilling. The project is represented by two fields. For the primary calculations, the duration of mining is estimated at seven years, with current reserves of gold, 710 thousand ounces (22 tons), established resources are estimated at 854 million ounces (25 tonnes). Construction of the mine to begin in mid-2010. And production - at the end of 2012. Expected capital expenditure of 116 million dollars. Operating expenses should make 427 dollars an ounce. Deposit Pau-a-Peak is located 62 km. to the south of the deposit and available for Ernesto road. Two fields are treated as a single project with excellent infrastructure will be developed in two mines, but the processing of ore will be produced at one of the gold plant.
What to expect?
Traditional purchase of precious metals in the early years of the funds, the general improvement in investor sentiment, as well as lowering the U.S. dollar will provide sustained support for quotations of gold and silver. However, the situation could change dramatically if the dollar will resume its strengthening, as the inverse correlation between the dollar and the prices of precious metals continues.
Why worry?
volatile changes in the currency market may be reflected in the sharp fluctuations of prices for precious metals.
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