Gold pares gains after US stocks fall
Gold prices pared early gains this afternoon, but found enough support to stay above the US$1,600 per ounce mark. The yellow metal rallied earlier today after the European Central Bank (ECB) lent more than expected to European banks to boost liquidity in the sector.
While expectations were for €250 billion to €300 billion, the ECB provided €489 billion in three year loans. The tender lifted confidence in the strength of the European banking sector.
Later in the day, however, the US dollar, which is seen as an alternative investment to gold, rose after stocks in the US fell sharply in early trade, prompting investors to pour money into the safe haven greenback.
US equities were dragged down by a disappointing update from tech giant Oracle, whose quarterly revenues missed forecasts as some of its major customers did not close orders. Shares in Oracle tumbled 14 percent after the report was released.
Gold traded at US$1,614/oz this afternoon, unchanged from Tuesday's close. Silver fell 9 cents to US$29.48/oz and platinum fell US$1 to US$1,428/oz.
Today's top risers in the sector were:
Central Rand Gold (LON:CRND), up 41 percent at 1.1 pence at midday
Conroy Gold (LON:CGNR), up 11 percent at 3.6 pence
Angel Mining (LON:ANGM), up 8.5 percent at 1.6 pence
Norseman Gold (LON:NGL), up 7.5 percent at 4.9 pence
Avocet Mining (LON:AVM), up 5 percent at 195.25 pence
The top fallers were:
Alecto Minerals (LON:ALO), down 8.5 percent at 1.6 pence at midday
African Consolidated Resources (LON:AFCR), down 8.5 percent at 2.41 pence
Solomon Gold (LON:SOLG), down 7.5 percent at 9 pence
ECR Minerals (LON:ECR), down 6 percent at 1.01 pence
Orsu Metals (LON:OSU), down 5 percent at 7.01 pence
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