Gold Lower on Profit-Taking, Rising Dollar Vs Euro


Gold is on the decline in early morning trade Thursday, as profit-taking on its three-month highs hit and the dollar's gains against the euro diminished investors' appetite for the yellow metal.

Concerns about Greece's debt situation and the European Union's response to it continue to keep investors on their toes, and so long as uncertainties persist, the dollar is seen gaining ground which in turn would diminish the allure of alternative assets. The European Central Bank and the Bank of England's decision to keep interest rates unchanged was as expected, and has had little impact on the metals market.

At 0810 ET, gold is 0.5% lower at $1,147.70 an ounce, while silver is nearly 1% lower at $18.02 an ounce, and copper is down 1.6% at $354.05 a pound.

In South Africa, gold output fell 9.2% in February compared to the same month a year ago, while total mineral production gained 5.8%.

On the corporate front, Australia's Mincor Resource ( MCR ) has kicked off a study that may lead the company to reopen its Miitel nickel mine. Mincor had stopped operations at the mine in 2008 due to low nickel prices, but since then base metal prices have gained and are seen rising still further amid renewed hopes for business growth.

Meanwhile, Brazilian mining giant Vale's ( VALE ) request to the European Commission to investigate whether steelmakers colluded in price talks was dismissed as absurd by Eurofer, a trade group representing European steelmakers. Vale is the biggest iron ore producer in the world, and earlier this month, Vale and BHP Billiton ( BHP ) ended a decades-old system of fixing iron ore prices on an annual basis, and instead agreed to short-term price setting with Asian steel mills.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: BHP , MCR , VALE

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