Gold is falling rapidly in morning trade Monday amid worries about the impact the SEC's lawsuit against Goldman Sachs will have not only on the banking sector, but on global financial markets in general.
While Goldman has responded aggressively against the Securities and Exchange Commission, many investors are concerned that the government will place more trading restrictions since the investment bank has been a major trader on the market.
At 0815 ET, gold is down 0.6% at $1,130.00 an ounce, while silver is down 0.5% at $17.59 an ounce, and copper is 1.0% lower at $347.95 a pound.
On the corporate front, there is talk that Newmont Mining Corp. ( NEM ) is in talks to take over Australia's Lihir Gold Ltd. ( LIHR ), as first reported by the Australian Financial Review. Lihir has already rejected a $8.45 billion offer from Newcrest Mining Ltd. ( NCM ), and it has hired Macquarie Capital Advisers to advise on other options.
Shares in Platmin Ltd. ( PLN ), meanwhile, fell to their lowest since October as the platinum producer sai it will raise $250 million selling new shares.
As for Kumba Iron Ore Ltd., it wants to speed up arbitration with ArcelorMittal South Africa over a supply deal dispute. Kumba Iron Ore, which is part of Anglo American plc ( AAUKY ), said that it has charged market rates for supplies to ArcelorMittal's ( MT ) South Africa unit, and has asked the company to pay the difference between a previous preferential rate and new prices into a special account pending on the resolution of the dispute.
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