Gold is tanking in morning trade as equities worldwide bounced
back up and profit-taking kicked in. Certainly, with gold reaching
record highs last week, analysts broadly agree that the yellow
metal's gains cannot continue indefinitely.
Still, as the euro remaining weak against the dollar and worries
about sovereign debt risks spreading beyond the Greek borders
persist, gold continues to be regarded as a safe haven in the
At 0815 ET, gold is 1.6% weaker at $1,208.80 an ounce, while
silver is down 0.7% at $18.73 an ounce, and copper is up 2.7% at
$3.00 a pound.
Holdings in the biggest gold-backed ETF, the SPDR Gold Trust,
rose by 3.04 metric tons to a record 1,217.11 metric tons.
On the production side, Venezuela announced that it will double
its gold output next year to 10 tons from its current level of 4.2
tons. Industries and mining minister Jose Khan said that production
could triple and reach 15 tons by 2012, as he showed Chinese
officials the country's Capitan Eduardo Vera ore-processing
As for Harmony Gold Mining Co. (
), the company has agreed with unions to continue operations at one
of its three loss-making shafts in South Africa that it had planned
to close down. Last month, Harmony said that it will slash 3,700
jobs by shutting down three shafts at its Virginia mine in Free
State province. Under its latest agreement with the unions,
however, Harmony will keep one shaft open if it does not make
losses for two straight months and the total costs remain under
$33,750 per kilogram of gold.
Meanwhile, customers strapped for cash will be able to convert
their gold and silver jewelry into greenbacks at Kmart and Sears.
Sears Holdings Corp. (
)said that the service will be available at its two retailing
group's jewelry departments which will ship the items to Pro Gold
Network, a company that buys precious metals from consumers.
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