The price of gold in Sydney yesterday was USD$661.35 a fine ounce, up 75c on Wednesday’s close, the Herald Sun reports. Gold miners were mixed; Newmont (ASX:NEM) added 6c to AUD$4.81, Newcrest (ASX:NCM) stepped back 33c to AUD$21.99, and Lihir (ASX:LHG) put on 4c at AUD$3.21.
Barrick Gold (NYSE:ABX) has sold three-quarters of its stake in South Africa’s Gold Fields (NYSE:GFI), the world’s fourth largest gold producer. As a result, shares in Gold Fields jumped 2.4% to R126.99, outperforming a 0.47% rise in the gold mining index, Mining Journal reports.
In the next few days gold may touch a low of USD$655 as the Monsoon season sets in in India, according to Darren Heathcote, head of trading at Investec Bank. Quoted by Livemint.com, Mr Heathcote said that while imports of bullion by India peak in May, coinciding with the local wedding season, the onset of the monsoon season traditionally weakens demand.
Canadian gold producer Ivanhoe Mines (NYSE:IVN) is likely to pursue a sale to strategic parntner Rio Tinto (ASX:RIO) once the two companies have reached an investment agreement to develop Mongonlian copper-gold assets, FT.com reports, quoting a source close to Ivanhoe.
“If Rio concludes what we agreed in October, their final investment…they are not interested in just a minority stake or even a majority stake, they are interested in the whole thing,” said the source.
Newsroom reports that more than 10,000 jewelers across the Indian state of Maharashtra will close up shop on May 30 to participate in a ‘Peace March’ to government headquarters in Mumbai to demand heightened security measures for the trade. Maharashtra is India’s leading state for the manufacture and sale of gold jewelry, and there have been nearly 40 robberies in the area over the last 11 months.
Spain has severed relations with Florida-based Odyssey Marine Exploration (AMEX:OMR) over the company’s discovery of a wreck and subsequent export of gold and silver coins to the US, EUX TV reports. Spain argues that the company has not provided enough information about the nationality and whereabouts of the wreck, while Odyssey Marine claims the ship was found in international waters. The treasure on board the ship is said to be worth more than half a billion US dollars.
The Daily Reckoning Australia