Gold is rising in morning trade Wednesday as the greenback
continues to slide against the euro. Moreover, many traders expect
the yellow metal to retain its sheen as an alternative asset on
buying interest from Chinese investors.
There is growing speculation that China could revalue its
currency, which in turn would strengthen the yuan and bolster
demand for gold, as it would become cheaper for Chinese investors
to buy up. The Chinese market accounted for 11% of global gold
demand in 2009.
At 0815 ET, gold is up 0.5% at $1,159.00 an ounce, while silver
is up 0.9% at $18.41, while copper is 0.2% stronger at $360.65 a
Palladium, meanwhile, reached a two-year high, lifted by strong
demand from car manufacturers buying the metal in anticipation of a
solid global economic recovery.
On the corporate front, Anglo Platinum (
) said that it would bolster output at South Africa's Mogalakwena
mine by 69% within five years. The mine is expected to produce
400,000 ounces of platinum in five years' time, compared to 237,279
last year. The company is majority owned by Anglo American (
Meanwhile, Mexican miner Fresnillo (
) reported gold production in the first quarter rising nearly 32%
to 85,097 ounces, while silver output rose 3% to 0.5 million
ounces. In addition, the company said that output from its new
Soledad-Dipolos gold mine has been better than expected thus far,
but it did not raise its target for overall gold production in
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