The spot gold price closed in Sydney trading at USD$686 an ounce yesterday, down USD$2.65 an ounce on Tuesday’s close. Gold miners were mixed; while Newcrest (ASX:NCM) gained four cents to AUD$23.60 and Lihir (ASX:LHG) picked up one cent to AUD$3.02, Newmont (ASX:NEM) shed three cents to AUD$5.27.
In international trading overnight, gold fell by more than USD$10 to USD$673.90, while gold futures for June delivery fell USD$9.40 to an eight week low of USD$678. Bloomberg reports that a rebound in the dollar may have reduced the appeal gold as an alternative investment.
“The surprising strength in the dollar overnight has had a negative impact in the gold market,” said Daniel Vaught, a commodity analyst at A.G. Edwards. “You’re seeing general weakness in gold because it didn’t break out of USD$700 when it had the chance.”
Beleaguered gold producer Bendigo Mining (ASX:BDG) has released a quarterly report that saw a lift in its share price to AUD$0.38 cents at close. New Managing Director Rod Hanson described the March quarter as a “turning point” with exploration focusing on the more prospective Garden Gully line after the Sheepshead System returned disappointing results, Mineweb reports. The company produces 12, 822 ounces during the quarter, a lift on the previous quarter’s result of 9,209 ounces.
To counteract recent weak results in Canada, the Italian Trade Commission has organised a promotional event for Italian goldsmithery in Canada. Called Sublime, the showcase is aimed at promoting Italian gold jewellery across Canada, where there is intense competition from the United States and China.
In 2006, Italian gold jewellery earned C$3.3 million in export – just 7% of gold exports into Canada – and forecasts for 2007 are not good, according to Tandem Magazine.
A man who lived next to a cemetery in New York has been arrested for allegedly stealing jewellery and gold dental fillings from graves, Newsday reports. Joseph Vecchiarelli, 28, sold one ring and had a second in his possession, and was charged with six counts of interfering with a cemetery or burial ground and one count of larceny.
Vecchiarelli never sold the fillings. “You can’t do anything with that,” said a police officer.
The Daily Reckoning Australia