The price of gold in Sydney yesterday was USD$663.00 per fine ounce, up USD$3.85 on the previous day’s close, the Daily Telegraph reports. In the gold sector, Newcrest (ASX:NCM) dropped 22 cents to AUD$23.59, and Lihir (ASX:LHG) fell two cents at AUD$3.24.
Shares of Newmont Mining (ASX:NEM) fell 2.2% on Tuesday, after HSBC Global Research downgraded the gold miner to “neutral” from “overweight,” citing rising costs and weak production growth, Forbes reports. Victor Flores, an analyst for the research firm, said it appears that the market is ascribing Newmont’s performance woes to “the company’s inability to grow its production and on its rising cost profile”.
Western Goldfields (TSX:WGI) has announced reserve and resource increases at its Mesquite Mine in Imperial County, California. Proven and Probable reserves increased to 2.77 million ounces of gold. Measured and Indicated resources (inclusive of reserves) increased to 3.87 million ounces of gold.
Reuters UK reports that experts have claimed more research is needed on the potential health and environmental hazards of nanotechnology, which involves manipulating materials, including gold, on an ultra-small scale. Nanotechnology has the potential to make better products in many industries, but the particles used could be dangerous if they interact with the human body or the environment in unexpected ways.
Gold, for example, is inert in bulk; but when particle size reaches less than 2 billionths of a metre, the yellow metal turns blue and can bind to DNA.
Arabian Business reports that import duty on gold jewellery in Saudi Arabia has been lowered to 5%, the result of a Saudi cabinet decision on Monday.
The State Bank of Pakistan (SBP) is planning to re-value its gold reserves on a monthly rather than an annual basis, the International News reports. The aim of publishing the fund position on a monthly basis is to generate confidence among local and foreign investors.
Markets and Money