Gold futures continue to be subdued by this week’s early Dollar rebound, the Dollar Index has continued to add to yesterday’s gains, largely due to the dollar strengthening over the Euro. However with the dollar index currently holding 77.08, it still represents a substantially weaker dollar than this time last year.
Despite last weeks record weekly ‘net long’ positions of over 29 million ounces, the gold price is receiving support just below the $1,000 mark.
Prices have maintained the majority of last week’s gains, some analysts and investors are hoping that this week’s initial activity merely represents a consolidating pause before an attempt to build on last weeks rally.
North American gold equities have started the day cautiously positive despite the drop in gold prices.
Canadian-based Yamana Gold (NYSE:AUY) advanced almost 2%, multi-national gold producer Randgold Resources (NYSE:GOLD) rose 1% on the open this morning, gaining 75 cents per share. Similarly Barrick Gold Corp (NYSE:ABX) also started the day positively.
Second-tier gold miners are generally strong following the increasing gold price, international gold producer IAM Gold (NYSE: IAG) hit $14.50, gaining over 1½% in early trading, New Gold (AMEX:NGD) has also started the day higher, up over 1% at $3.71. However, Agnico Eagle(NYSE:AEM) fell 27 cents to $69.14.
Junior gold stocks started the day with mixed fortunes. South American focused exploration play Exeter Resource Corp (AMEX: XRA) advanced further on its recent strong performance, following Monday’s announcement of a substantial resource estimate. Exeter rose a further 5% today, reaching another new yearly high of $4.53.
Nevsun Resources (AMEX: NSU) rose 2% in early deals, Mexican explorer Minefinders (AMEX: MFN) was also positive, gaining 1.5%. Keegan Resource Inc AMEX: KGN) rose 9 cents to $3.74, while Ontario based Rubicon (AMEX: RBY) was trading at $3.90, down 2% on the day.
Centamin Egypt (AIM: CEY, ASX: CNT, TSX: CEE) and Eldorado Gold (TSX:ELD; NYSE:EGO) were virtually unchanged.