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Monthly Archives: April 2015

PRECIOUS-Gold eyes first weekly gain in four despite better U.S. data

May 1 Gold steadied on Friday after a 2 percent fall in the prior session on better-than-forecast U.S. jobs data, but despite losing some of its safe-haven status bullion was still on track for its first weekly rise in four.

FUNDAMENTALS

Spot gold was down 0.1 percent at $1,182.66 an ounce by 0042 GMT. Prices were set to see gains of around 0.4 percent for the week, the first weekly rise since early April.

U.S. gold was flat at $1,182 an ounce.

The number of Americans filing new claims for jobless benefits tumbled to a 15-year low last week and consumer spending rose in March, signs the economy was regaining momentum after stumbling badly in the first quarter. (more…)

CME Group bars two gold futures traders for allegedly spoofing

CME Group Inc on Thursday barred two traders from its markets for allegedly colluding to enter orders repeatedly with no intention of trading, a strategy that has been fingered as a key contributor to the 2010 Wall Street flash crash.

Heet Khara and Nasim Salim, both traders of CME Group’s gold and silver futures contracts on its Comex exchange in New York, are prohibited from trading for 60 days, according to a disciplinary notice released by the futures exchange giant.

Each trader, the notice said, “entered orders or layered multiple orders to encourage market participants to trade opposite his smaller orders resting on the opposite side of the book after receiving a fill on his smaller orders, each trader would then cancel the resting order or layered multiple orders that he had entered on the opposite side of the order book.”

Reuters was not able to immediately contact either trader to comment on the CME notice. (more…)

PRECIOUS-Gold falls after Fed does not rule out 2015 rate rise

Gold fell on Wednesday, extending the session’s losses after the U.S. Federal Reserve signaled it was taking a meeting-by-meeting approach on when to raise interest rates for the first time since 2006.

Following a two-day meeting, the Federal Reserve pointed to weakness in the U.S. labor market and economy, a sign it is struggling with plans to raise interest rates this year.

Spot gold fell to a session low of $1,201.13 after the Fed statement, and was down 0.6 percent at $1,204.70 an ounce at 3:03 p.m. EDT (1903 GMT). It gained nearly 3 percent in the last two sessions, rising to a three-week high of $1,215 on Tuesday.

U.S. gold futures for June delivery settled down $3.90 at $1,210.00 an ounce. (more…)

Yamana Gold pledges to fix executive pay plan after investors vote ‘no’

Yamana Gold Inc will change its executive pay plan to better reflect performance, the mid-tier miner told shareholders on Wednesday after they voted against the plan, a day after industry leader Barrick Gold Corp made the same promise to its unhappy investors.

More than 50 percent of Yamana shareholders who voted rejected the plan, according to early returns, Chief Executive Peter Marrone said after Yamana’s annual meeting in Toronto.

“We regret this result, although we have clearly understood the message,” Marrone told shareholders, adding that he had made a personal decision to waive 450,000 performance share units that he was awarded last June.

“I hope that they will be seen as a positive sign of our intention and commitment to aligning our compensation to performance,” Marrone said.

The stock units, which have been canceled, were related to Yamana’s and fellow Canadian gold miner Agnico-Eagle’s joint purchase of Osisko Mining in 2014. (more…)

PRECIOUS-Gold rallies above $1,200/oz as shorts take cover

Gold jumped more than 2 percent on Monday above $1,200 an ounce, on track for its biggest one-day rise since January as the rally had some dealers scrambling to cover short positions and the May options expiry triggered more buying.

The more volatile silver market rallied 5 percent, also on track for its biggest surge since January, supported by the gold market.

Spot gold was up 2.1 percent at $1,203.30 an ounce at 2:56 p.m. EDT (1856 GMT), well above the prior session’s five-week low. U.S. gold futures for June delivery settled up 2.4 percent, at $1,203.20 an ounce.

“It’s quite undervalued and we’ve had a long period of consolidation around the $1,200 mark,” said Mark O’Byrne, research director of bullion dealer GoldCore, noting that the breach of the $1,200 level spurred additional technical buying.

O’Byrne said that while there were several factors spurring the session’s rally, short-covering could be the primary driver

Options-related buying also buoyed prices with U.S. May options set to expire at the end of the day with relatively heavy open interest at the $1,200 strike price, traders said. (more…)

All Barrick Gold director nominees appointed to company board

All 13 director nominees have been appointed to Barrick Gold Corp’s board, the gold miner said on Tuesday.

Ahead of Barrick’s annual meeting, a few shareholders had said they would withhold votes from directors due to unhappiness about the Toronto-based miner’s executive compensation plan.

Russia’s Nord Gold to increase free float to over 30 pct on LSE

Russian gold miner Nord Gold said on Monday its board had approved an increase in the company’s free float to more than 30 percent on the London Stock Exchange.

The approval came as part of Nord Gold’s capital markets strategic initiative, the company said in a statement, without providing further details.

Saudi Ma’aden’s gold and metals unit gets 1.2 bln riyal loan

Saudi Arabian Mining Co (Ma’aden) said its gold and base metals unit had obtained a 1.2 billion riyal ($320 million) loan from the state-affiliated Saudi Industrial Development Fund to help develop the Ad Duwayhi mine.

The loan will be repaid in 14 installments spread across seven years and was financially guaranteed by Ma’aden, the company said in a statement on Sunday. Ma’aden Gold & Base Metals Co operates five gold mines in Saudi Arabia, according to the company website. ($1 = 3.7500 riyals)

PRECIOUS-Gold falls to 1-month low as global equities hit all-time highs

Gold hit its lowest level in more than a month on Friday, falling for the third straight week as strength in global equities diverted interest from the precious metal, although uncertainty over the timing of a U.S. rate rise kept prices in a tight range.

Spot gold was down 1.4 percent at $1,177.03 an ounce at 2:34 p.m. EDT (1834 GMT), while U.S. gold futures for June delivery settled down $19.30 an ounce at $1,175. That marked spot gold’s largest single-session decline since March 6.

Spot prices are down 2.2 percent this week, their biggest weekly loss in seven weeks.

World stocks hit all-time highs on Friday as corporate updates in Europe and a post-dotcom-boom peak for the U.S. Nasdaq stoked investor optimism. (more…)

El Salvador sells 80 pct of gold reserves to hedge risk -central bank

El Salvador’s central bank sold about 80 percent of its gold reserves last month to diversify risk and take advantage of the metal’s appreciation, a central bank official said on Friday.

The country, which has been dollarized since 2001, sold 5.412 tons of gold for $206 million, which will go into the Bank’s reserve portfolios to protect it against market volatility.

The poor Central American nation was the only country to sell gold in March, while Turkey, Belarus, Kazakhstan and Russia increased their holdings, according to data released by the International Monetary Fund on Friday.

El Salvador’s central bank expects the economy to grow 2.8 percent this year, above the 2.2 percent reached in 2014, thanks to a U.S. recovery and lower oil prices.

PRECIOUS-Gold rises from three-week low on soft U.S. dollar

Gold rose from a three-week low on Thursday, following its biggest drop in over a month on Wednesday, as the dollar retreated on weaker-than-expected U.S. economic data.

Spot gold was up 0.8 percent at $1,197.35 an ounce by 2:31 p.m. EDT (1831 GMT), after touching its lowest since April 1 at $1,183.65.

Commodities were broadly higher as oil touched its highest price this year. The bellwether Thomson Reuters/Core Commodity CRB index rose over 1 percent.

Gold fell 1.3 percent on Wednesday, its biggest daily decline since March 6, pressured by a stronger dollar after U.S. home resales surged to a 1-1/2-year high in March.

U.S. gold futures for June delivery settled up 0.6 percent at $1,194.30 an ounce. (more…)