Need To Know News

Metals finished the day mixed with Gold flat at 816.6, Silver off 0.5% to 13.035, Platinum up 1.5% to 1372 and Copper falling 0.8% to 339.70.

After repeatedly bouncing off session highs around 824 early in the session, Gold sold off into negative territory and hit a low of 805. However, it managed to rally into the close to finish relatively unchanged. Tomorrow, 805 will be support with the key 800 level below that. On the upside, the 9-day moving average (820.30) and today’s high (824.50) will be resistance.

Copper spent the afternoon challenging resistance at 340, but was unable to break through the level. 340 will also provide resistance tomorrow with today’s low of 360 serving as support.

Copper is down 1.1% to 339.10. In the morning, Copper broke through resistance at the 21-day moving average (345.65) for the first time since the end of July. However, Copper could not hold these gains and eventually broke back through the level after testing support for over an hour. It plunged down to a low of 336 before rallying into lunch to pare its losses. In the afternoon, the low of 336 will serve as support with the 340 handle as resistance.

ArcelorMittal, the world’s biggest steel producer, announced a $250mln agreement with Canada’s Adriana Resources for the development of an iron-ore port facility in Rio de Janeiro Brazil. The port will be built on lands acquired by Vancouver-based Adriana Resources in January.The announcement came on the heals of Arcelor’s $810mln acquisition of London Mining Brasil.

According to a company statement, the firm plans to use its share of Adriana’s port’s capacity to export iron ore from London Mining’s Brasil mine to its steel facilities in the Atlantic basin.

London Mining Brasil has an estimated 1,059 mln tonnes of iron ore resources, and ArcelorMittal is considering investing another $700 mln to increase production.

Since its creation in 2006, ArcelorMittal has been aggressively seeking to raise its iron ore self-sufficiency to 75% by 2012 from its current 45%, and has already raised its coal self-sufficiency to 20% from 15% following the purchases of mines in Russia and the U.S this year. The company has, over the past two years spent billions of dollars in investments and acquisition in both developing and mature economies.

Gold has come under increased selling pressure going into lunch in response to extended USD strength as the USD Index has shaken off earlier weakness to gain 0.4%. Gold appears to be headed for a re-test of the 800 handle after trading consistently higher than 820 overnight. Gold is down 1.1% to 807.90 and continues to be held below the 9-day moving average just under 820. Gold is in line with coincident lows from the end of November and will continue to take a tip from USD this afternoon.

Gold is down 0.3% to 814.30. In premarket trading Gold dipped to 812 but recovered to rally past yesterday’s high of 822.90. Gold could not break through resistance near intraday highs of 824.50, and sold off as floor trading began. Gold is now hovering around yesterday’s close of 816.80 with support down at 811.30 and the key 800 level.

Gold Action: Gold traded on a supportive footing in the European session, although it struggled to sustain upward momentum after the dollar made up ground late on in the European morning. Gold continued Tuesday’s rebound and extended to $817.80 highs, but eventually turned lower to trade back in to $806.90 lows.

The recovery in crude prices from Tuesday’s low has also helped sentiment, however, risk remains on the downside, with sentiment still weak. Gold traders are anticipating some physical demand on dips, with India in particular, expected to pick up their buying interest ahead of a series of key religious festivals.

Metals finished mixed on the day with Gold up 1.3% to 816.80, Silver flat at 13.105, Platinum down 3.1% to 1351.3 and Copper rising 3.4% to 342.85.

Gold broke key resistance at 800 and shot up to 820 around noon. It trickled downwards for the rest of the session, but held on to most of its gains. Tomorrow, resistance will be at today’s high of 820.80 with support at the 800 handle.

Copper rallied all the way up to the 21-day moving average of 347, but couldn’t break through resistance. It sold off into the close and also fell below Thursday’s high of 343.40.

Yesterday’s close of 13.10 served as resistance for Silver for much of the day, but that level was breached around lunch and Silver reached a high of 13.335. Silver could not hold those gains, however, and sold off until it hit 13.10, which had turned into support.

Platinum continued its run downwards although it finished well of its low of 1307. Platinum is off 34% in the last 5 weeks.

Canadian junior miner PolyMet Mining is about to revitalize the town of Hoyt Lakes, Minnesota, by reviving an abandoned copper and nickel mine.

It’s part of a broader trend that has pushed the total value of all mining projects planned for the US and Canada to more than quadruple to $34.1bln in 2007 (from $7.47mln in 2004). Investors betting on miners with North American holdings have gained more than those betting on established giants like Ivanhoe and Moto Goldmines.

Although commodity prices have retreated in recent weeks, copper prices are still 300% higher than they were 5 years ago, while nickel is up 93% and gold has more than doubled. These increases are encouraging mining companies to take a second look at abandoned mines in North America where operations are free of the political instability, changing laws and rising royalties plaguing miners in developing countries.

Gold, up 1.4% to 817.20, continues to trade near session highs leading into the close with the 9-day moving average above price at 827.37. Gold is currently trading above Thursday’s close and is testing upper trend line support from its sell-off beginning mid-July.

If Gold can maintain its momentum it could make a run at 840, which represents last week’s high and 25% retracement from its August 15 low at 776.80. Gold will continue to take a tip from USD, which is backing away from its recent surge.