MELBOURNE AUSTRALIA (Daily Reckoning): The gold price lost around USD$4.60 overnight to $USD645.50 an ounce. According to reports from the ABC, this was due to significant falls on Wall Street overnight after a weak report on retail sales renewed investors’ fears about a possible slowing of the US economy.
The Sydney Morning Herald reports that gold closed $USD1.60 lower at $USD650.80 per fine ounce in Sydney last night. Lihir Gold (ASX: LHG) dropped 5c to AUD$3.12, Newcrest (ASX: NCM) lost 7c to AUD$21.21 but Newmont (ASX: NEM) added 2c to AUD$5.40.
President of the German Central Bank or Bundesbank, Axel Weber, has said that the bank plans no substantive gold sales in the current year of the central bank gold agreement and has made no firm decision for next year. Resource Investor reports that Bundesbank has already sold 5.3 tonnes of the 8 tonnes of gold it had set aside for gold coins.
North Atlantic Resources has commenced its second drilling program at the Massala gold project in southern Mali. The main target of the drilling program is the environment surrounding a reverse circulation drill hole from 2006 which intersected 12 metres grading 3.26 grams of gold per tonne.
Gold futures closed lower Tuesday after stalling at the USD$650 per ounce level, as traders watched moves in the US dollar and oil in the hope of predicting the precious metal’s next direction.
According to reports from Radio New Zealand, Fiji’s interim cabinet has endorsed Emperor Gold Mining Company’s sale of the closed down Vatukoula gold mine to an Australian company.
Resource Investor reports that Rajesh Exports, the world’s largest manufacturer and exporter of gold jewellery, has moved into the retail business by launching retail outlets called Laabh. The company has launched 27 outlets in 23 cities across India.
Government lawyers in Philadelphia are arguing that a family that asked the US Mint to authenticate 10 extremely rare coins cannot prove they were obtained legally and has no right to them, the International Herald Tribune reports. The gold coins, 1933 “double eagles” that were never circulated, could be worth millions of dollars apiece. A comparable one sold for USD$7.59 million in 2002 – the highest price ever paid for a coin.
The Daily Reckoning Australia