The market of precious and industrial metals started the trading week with an increase.
The continuous conflict in Libya and the financial and political instability seen in different parts of the world keep supporting the precious metals. There is also some information that Saudi Arabia is on the verge of unrest and that the King Abdulla has even allocated $36B for public payments to prevent a revolt. At the moment it is geopolitical factors that influence various markets most of all, including the market of precious metals.
There is contradictory news coming from Egypt: the Centamin company (CEY.L) (CEE.TO) hasn’t received any governmental instructions to restrain the export of gold so far. So it is going to continue exporting gold. Even though, previously the authorities banned the export of gold in order to prevent the former officials from withdrawing the illegally earned riches.
Australia defended the position of the world’s 2nd largest gold exporter. It produced 266 tons of gold in 2010, which is 17% more than in 2009. It is the highest volume since 2003. China’s result is 341 tons for the same period.
India introduced a new investment scheme in gold (it implies investing the farmers’ revenues, which have recently seen significant growth and are expected to increase the demand for gold).
Southern Cross Goldfields Ltd, an ASX company (ASX: SXG), is engaged in research and development of high-quality gold assets in the South of Australia. The company announced that it had raised premium-quality surface gold having good development perspectives.
Coeur d’Alene Mines Corporation, The USA’s major silver producer (and one of the biggest gold producers), which owns mines in Bolivia, Mexico, Alaska, Nevada and Australia, announced on Monday that it was planning to produce 20 million ounces of silver and 250.000 ounces of gold in 2011. According to the announcement, the company expands its production capacity every year.
The Chinese and Indian jewelers’ demand for the precious metals remains high. The industrial metals have also seen some growth this week against the background of the weakening US Dollar and more expensive crude oil. Having analyzed the mentioned info we expect the uptrend to continue.
The Department of Commodity Trading, Masterforex-V Academy
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