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
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
On the corporate front, Australia's Mincor Resource (
) 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 (
) 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 (
) ended a decades-old system of fixing iron ore prices on an annual
basis, and instead agreed to short-term price setting with Asian
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