Gold falls as US dollar rises on euro zone jitters
Gold fell this afternoon under pressure from a surge in the US dollar, which came as the euro declined following a disappointing auction of Italian debt.
The euro zone's third largest economy saw yields on its six month noted jump from 3.5 percent at the previous auction to 6.5 percent, while yields on its two year bonds rallied to a euro era high of 7.83 percent.
The outcome of the auction added to fears that the European debt crisis is spiralling out of control.
It also didn't help that Moody's decided to downgrade Hungary's credit rating to junk status.
Gold was able to recoup some of its losses later in the session as traders bought into the cheap price after the yellow metal slipped below US$1,675 per ounce.
Gold traded at US$1,690/oz this afternoon, down US$4 from Thursday's close. Silver declined 49 cents to US$31.38/oz and platinum fell US$4 to US$1,533/oz.
Today's top risers in the sector were:
Alecto Minerals (LON:ALO), up 31.5 percent at 1.97 pence at midday
Medusa Mining (LON:MML), up 8.5 percent at 360 pence
Highland Gold Mining (LON:HGM), up 4 percent at 179 pence
Obtala Resources (LON:OBT), up 2.5 percent at 32.55 pence
The top fallers were:
Orsu Metals (LON:OSU), down 8 percent at 7.25 pence at midday
Solomon Gold (LON:SOLG), down 7.5 percent at 7.75 pence
GoldStone Resources (LON:GRL), down 5.5 percent at 4.6 pence
Peninsular Gold (LON:PGL), down 5.5 percent at 26 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
