logo-loader

Gold eases lower as fund holdings continue to fall

Published: 00:52 09 Apr 2013 AEST

no_picture_pai

Gold eased lower again reversing the good gains seen Friday when US jobs data came in much lower than expected and spooked equity markets.

Spot gold fell US$1.59 to US$1,575.31, with the price again hurt by selling by holders of exchange traded funds.

Holdings in the world's major gold exchange-traded funds fell to their lowest for 18 months last week. Selling by ETF holders has been a major feature behind the 6% fall in the gold price since the start of 2013.

Recent strength in the US dollar has also hit the price of the metal. Gold tends to move in the opposite direction the US currency, but even a weaker dollar today could not inspoire much buying interest. 

At the company level, it was a better day for Polymetal and its backers. The Russian gold and silver producer increased its dividend by 55% as sales climbed 40% to US$1.85bn on the back of a sharp increase in gold and silver production. 

Net profit increased to $394 mln or $1.03 per share, from $289 mln or $0.74 per share in the previous year after one-off tax charges. 

Cash costs were little changed at $703 per oz with total gold equivalent production 31% higher at 1.06mln ounces, 6% above forecasts.

Annual gold and silver production both increased 33% to 589,000 oz and 26.5 Moz respectively. Polymetal added it was on track to meet its 2013 target of 1.2 Moz of gold equivalent.

Elsewhere the silver price rose US$27.19, while platinum added US$8 to 1,531.

Major movers

Polymetal up 47p at 885p

Randgold Resources unchanged 5,290p

Anglo American  up 2.5p at 1,642p

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

7 hours, 20 minutes ago