Gold prices fall after euro zone bond auctions
Gold prices declined today as demand for the US dollar, an alternative asset to the yellow metal, surged after today's European bond auctions disappointed.
Spain sold a little more than €3.5 billion of 10 year notes, which was within its target range of between €3 and €4 billion. However, Spain saw its average yields jump to 6.975 percent, just short of seven percent, the level of borrowing costs that has forced Ireland, Greece and Portugal to ask the EU for financial aid.
Meanwhile, France, which auctioned off its five year notes today, saw its average yields surge from 2.31 percent at the previous auction to 2.82 percent.
The outcome of the auctions added to concerns that the euro zone crisis is spiralling out of control and could potentially trigger a financial meltdown in Europe.
Gold traded at US$1,740/oz this afternoon, down US$22 from Wednesday's close. Silver slipped 99 cents to US$32.71/oz and platinum slumped US$17 to US$1,600/oz.
Today's top risers in the sector were:
Mariana Resources (LON:MARL), up 29 percent at 10.99 pence at midday
Pan African Resources (LON:PAF), up 3 percent at 14.4 pence
GGG Resources (LON:GGG), up 2.5 percent at 19.3 pence
Kryso Resources (LON:KYS), up 2.5 percent at 28.75 pence
The top fallers were:
Oxus Gold (LON:OXS), down 17.5 percent at 1.05 pence at midday
African Consolidated Resources (LON:AFCR), down 14.5 percent at 2.56 pence
Orsu Metals (LON:OSU), down 9 percent at 7.75 pence
African Mining and Exploration (LON:AME), down 7.5 percent at 5.55 pence
Related news
- London Mining remains on track to hit 2012 production target at Marampa
- Ceres Power Holdings reports significant improvements of its fuel cell products
- Oxford Catalysts Group shares advance as it announces first start-up of FT reactor
- Mariana Resources kicks off drilling programme at Las Calandrias gold-silver project
- Orogen Gold begins Phase 1 drilling programme at Deli Jovan
- Magnolia Petroleum on track to hit 100 wells target by end-2012
- Mwana Africa sells 15pct stake in Freda Rebecca gold mine for $405k - UPDATE
