Gold Rises as Dollar Falters, Hopes High for Chinese Investors


Shutterstock photo

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 pound.

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 ( AMS ) 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 ( AAL ).

Meanwhile, Mexican miner Fresnillo ( FRES ) 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 2010.

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

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

This article appears in: Investing , Commodities
More Headlines for: AAL , AMS , FRES

More from MT Newswires


MT Newswires

MT Newswires

Market News, Commodities
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by