Gold equities ease as gold price awaits direction from the Fed and Forex markets
Gold appeared to be consolidating this week's gains in Europe earlier today, however In New York gold future began to slip lower. The Comex contract has dropped somewhat and is currently trading just below US$1,012.
Earlier in the session gold futures once again tested the $1,020 level, however global market appear generally cautious ahead of this evenings US Federal Reserve rate decision. Like Gold the US Dollar is largely unmoved as it continues to trade near annual lows throughout the course of today's trading.
The Fed is widely expected to maintain current rates; however analysts and investors are expected to scrutinise the tone of the statement. Analysts will gauge the Fed's attitude towards the sustainability of the recent unprecedented economic stimulus.
Depending on the detail and tone of the Fed's reaction, the US economy‘s growth prospects and the Dollar's inflation risk will no doubt come under speculation. Gold investors are expected to remain poised ahead of today's meeting which is scheduled for 14:30 Eastern Time (18:30 BST).
On Wall Street Gold equities have experienced mixed fortunes, Major International producer Randgold Resources (NYSE: GOLD) were positive, rising over 1% to trade at $73.90. Similarly the world's largest gold producer Barrick Gold (NYSE: ABX) progressed at a slower rate to rise marginally, up ½% at $37.68.
Canada-based Yamana Gold (NYSE: AUY) were relatively unchanged losing just a small fraction of a percent.
Second-tier gold miners were generally weaker in North America this morning, although there has been a few bright spots.
Nevsun Resources (AMEX: NSU) is among the few gold stocks rising in New York today rising to an intraday high of $2.13. Timmins Gold Corp (TSX-V: TMM) also joined the rising list, adding almost 3% on the Toronto's Venture exchange.
Fellow Canadian junior, the early-stage explorer Golden Chalice Resources Inc (TSX-V: GCR) also advanced 3%, after they confirmed the purchase of a block of 10 new claims in Ontario's Timmins district.
South American focused exploration play Exeter Resource Corp (AMEX: XRA) has consolidated recent gains. Exeter pushed slightly higher this morning after yesterday saw Exeter advance strongly following their Argentinean discovery.
Trading in international gold producer IAM Gold (NYSE: IAG TSX: IMG) was relatively neutral, with IAM Gold slipping marginally to trade at $14.65.
Multi-listed, Middle East focused Centamin Egypt (AIM: CEY, ASX: CNT, TSX: CEE) dropped 2%, while Keegan Resources Inc (AMEX: KGN) also fell almost 2%. Agnico Eagle (NYSE: AEM) lost 48c to trade at $69.30.
Ontario based Rubicon (AMEX: RBY) and New Gold (AMEX:NGD) each dropped 1½% in New York this morning, Mexico focused explorer Minefinders (AMEX: MFN) were also negative dropping 1%.
Elsewhere, Toronto Venture stock Victoria Gold Corp (TSX-V: VIT) fared less well following the rest of the sector down, slipping more than 1% in Canada.
Dual listed Eldorado Gold (TSX:ELD; NYSE:EGO) and low-cost gold producer Gold Resource Corp (OTCBB: GORO) were both unchanged.
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