Dynamics
On Monday 24 August at the tender quotes for precious metals suddenly gravely diminished in value due to increased sales on the basis of technical factors amid falling stock price with the highs reached earlier, and because strengthening the U.S. dollar in the currency market FOREX.
As a result of trading on the COMEX, division of the New York Mercantile Exchange (NYMEX), quotes on gold decreased by 11.00 to 943.70 dollars per ounce, silver prices rose 3 cents to 14.23 dollars per ounce.
Causes
On Monday, August 24 quotes for precious metals market has shown a significantdrop in price. U.S. stock indexes closed down different direction, but the companies' shares are down from peaks reached earlier due to the fall of the financial sector amid expectations of significant write-offs due to credit losses, the publication of weak corporate reports, as well as comments by a well-known analyst Richard Bove that 150-200 more U.S. banks will fail in the banking crisis. Some market participants may also sell gold because of fears the expiration of the option period, which is expected on Wednesday. Moderate growth in the U.S. dollar in the FOREX market is also restrained the rise in prices for gold. The technical picture is only reinforced the decline of the golden quotes because they have been punched important support levels and moving averages.
From news can note that the third volume of gold production in North America, a Canadian company, Kinross increased its gold production in the first half of 2009 on 47,3% to 1.087 million ounces (33.8 tonnes) of gold equivalent. This is largely managed through the door at full capacity, Russia Kupol, which owns 75% of Canadians. Following six months of production at the Dome was 491.388 million ounces (13.2 tonnes) of gold equivalent, representing about one-third of the total production of Kinross. Inspired by her success, the Canadians are going to build up, the extraction of gold from the field to 800 thousand ounces (25 tonnes). Kinross Gold to develop fields in the United States, Canada, Chile, Brazil, Ecuador and Russia. Total in 2008, Kinross produced 1.84 million ounces (57.2 tonnes) of gold. Kupol develops CJSC Chukotka GGK (25% owned by the administration of the Chukotka AO and 75% - Kinross Gold). In 2008 it had produced 537 thousand ounces (16.7 tonnes) of gold and 5.562 million ounces (173 tonnes) of silver. Kinross Gold Corp in 2009, almost 50% to 25 tons (800 million ounces), will increase gold production in Russia Kupol. Previously, the company's management was planning to boost production for the year to 23 tons, however, impressed with the results of the Dome in the first half, decided to add another 2 tons of the forecast. We have very good performance over the past seven months, and if so will continue, we eat our up to 2009 to 25 tons of gold, - says a company representative.
What to expect?
The main positive factor for the precious metals market is the stability of the neighboring markets, namely the oil sector and the market of non-ferrous metals. According to some analysts, stock sites have a little break and you'll soon continue their ascent, while positively influencing the market of precious metals.
Why worry?
Negative on the market of precious metals can produce expectations of low inflation, which were expressed by members of the U.S. Federal Reserve during the past last week in the U.S. city of Jackson Hole conference. Proof of this are recent data on inflation in the U.S..
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