Rohstoffnews

28 Dez 2004 09:50

28.12.2004 06:14:56 Gold inches up in Asia, platinum hits 3-week high

(Updates to afternoon)

SINGAPORE, Dec 28 (Reuters) - Gold edged up in Asia on Tuesday on some buying in Tokyo as a weak dollar, which together with the devastating tsunami that swept South and Southeast Asia, elevated the metal's safe-haven status.

But volumes were thin with many dealers already out of the market for year-end holidays.

Platinum hit a three-week high on speculative buying after the dollar fell to a record low against the euro on Monday, making dollar-priced precious metals a bargain for holders of other currencies.

Spot platinum was trading at $862/867 an ounce by 0440 GMT, versus $858/863 last quoted in New York. In Tokyo, the benchmark December platinum contract added 14 yen per gram at 2,783 yen.

"It's a speculative buying. That's it. It's nothing to do with physical demand," one dealer in Tokyo said.

Some Tokyo dealers said a tsunami that killed more than 24,000 people in Asia raised gold's safe-haven appeal in Japan but buying interest was limited because of the holiday mood.

Tokyo precious metals futures market will be closed from Dec. 29 to Jan. 3 for the New Year holidays. In Asia, gold is used for investment for future sales in times of trouble as well as adornment.

"We are expecting some activities after the New Year holiday," said Itsuo Toshima, Japan and South Korea regional director of the World Gold Council.

Japanese investors have diversified to gold coins and bars amid a growing willingness to hold hard assets after a series of typhoons across Japan and a major earthquake in October.

Dealers in Japan remembered seeing an increase in demand for coins and gold bars after a 7.2 magnitude earthquake hit the western port city of Kobe in 1995, killing more than 6,400.

Earthquakes are common in Japan, one of the world's most seismically active areas. The country accounts for about 20 percent of the world's earthquakes of magnitude 6 or greater.

Tokyo suffered the Great Kanto Earthquake in 1923, a 8.3 magnitude tremor that killed more than 140,000.

Spot gold was quoted at $444.75/445.50 an ounce, compared with $444.35/445.10 last quoted in New York. The metal had touched a high of $445 an ounce in Asia.

The benchmark December gold contract in Tokyo gold futures rose 3 yen at 1,482 yen.

The euro bought around 1.3597 , down from late New York levels near $1.3620 and from its all-time high at $1.3640.

Dealers, however, said the dollar remained vulnerable to more sell-off because of the record current account deficits in the United States.

Uncertainty about the outlook for the U.S. economy and the dollar's weakness were expected to increase interest in gold, they said.

In other precious metals, palladium was at $185/190 an ounce, compared with $185.50/191.50 in late U.S. trade

Silver was little changed at $6.95/6.98 an ounce.

28 Dez 2004 14:48

28.12.2004 12:47:39 Newmont says Indonesian civil suit withdrawn

JAKARTA, Dec 28 (Reuters) - The world's biggest gold miner said on Tuesday that a $543 million civil lawsuit against a subsidiary, which claimed the unit caused heavy metals poisoning, had been withdrawn.

U.S. mining giant Newmont Mining Corp (/NEM.N) is embroiled in controversy over allegations surrounding mercury and arsenic levels in Buyat Bay near one of the unit's mines in the far north of Sulawesi island, 2,200 km (1,400 miles) northeast of Jakarta.

Six executives of the subsidiary, PT. Newmont Minahasa Raya, are under investigation over the issue and could face criminal charges for pollution.

Three Buyat Bay residents had brought the civil suit. Newmont Minahasa said in a statement the residents had withdrawn the action and as "part of the settlement the plaintiffs acknowledge that their claims were baseless".

The statement also said Newmont Minahasa had agreed, at the plaintiffs' request, to withdraw a $2 million suit of its own against an NGO official over his charges the unit's operations had caused Minamata disease, a form of mercury poisoning.

"We have always maintained that Newmont has not polluted Buyat Bay and that this will become evident when emotions settle down," the statement quoted Newmont legal adviser Mochamad Kasmali as saying.

The NGO official, Iskandar Sitorus, the head of the Legal Aid Foundation for Health Issues, confirmed to Reuters that the suit had been withdrawn.

Prosecutors have said they expect to file charges under environmental laws against the Newmont executives and Newmont Minahasa Raya next month.

A government-commissioned probe concluded last month that sediment in Buyat Bay had significant levels of arsenic and mercury.

Two earlier studies -- one by the Indonesian government and another by the World Health Organisation -- concluded Buyat Bay was not polluted.

The case is being closely watched by business groups, some of whom have criticised the government's pursuit of Newmont as unduly harsh and likely to discourage investment.

Environmental organisations are also watching closely. They say the case shows Jakarta is willing to get tough with polluters.

Zacks Sell List Highlights: Hecla Mining, KEMET Corporation, Altera Corporation, and Delphi Corporation

CHICAGO, Dec 28, 2004 (BUSINESS WIRE) -- Zacks.com releases details on a group
of stocks that are part of their exclusive list of Stocks to Sell Now. These
stocks are currently rated as a Zacks Rank #5 (Strong Sell): Hecla Mining
Company (NYSE:HL) and KEMET Corporation (NYSE:KEM). Further they announced #4
Rankings (Sell) on two other widely held stocks: Altera Corporation
(NASDAQ: ALTR) and Delphi Corporation (NYSE:DPH) To see the full Zacks #5 Ranked
list of Stocks to Sell Now then visit: http://at.zacks.com/?id=92

Since inception in 1988, the S&P 500 has outperformed the Zacks #5 Ranked Strong
Sells by 168.2% annually (11.8% vs. 4.4% respectively). While the rest of Wall
Street continued to tout stocks during the market declines of the last few
years, Zacks told investors which stocks to sell or avoid.

Here is a synopsis of why these stocks have a Zacks Rank of 5 (Strong Sell) and
should most likely be sold or avoided for the next 1 to 3 months. Note that a
#5/Strong Sell rating is applied to 5% of all the Zacks ranked stocks:

Hecla Mining Company (NYSE:HL) earnings estimates for the year ending December
2004 have moved lower by 5 cents, or about -45%, from two months ago. The
company said that this year, and this quarter in particular, its work in
lower-grade areas of its underground mines has resulted in somewhat lower
production and higher costs than last year. Hecla reported a third quarter net
loss of (10 cents) per share in early November, falling short of the consensus'
profit expectation.

28 Dez 2004 16:41

28.12.2004 16:25:36 NY gold off, silver up early in thin year-end trade

NEW YORK, Dec 28 (Reuters) - Gold futures slipped on Tuesday morning and other precious metals were mixed in trade thinned by year-end vacations and a UK bullion market holiday, dealers said.

A fresh all-time low in the dollar versus the euro supported gold in its recent $440 to $450 an ounce range. In silver, prices held above $7.00 an ounce and near their highest in three weeks.

"There was buying by Morgan Stanley early this morning, but volume is very thin, so anything that comes in is going to push this market," a floor broker said.

By 10:00 a.m. EST (1500 GMT) on the COMEX division of the New York Mercantile Exchange, gold for February delivery lost $1.00 to $445.20 an ounce, trading from $446.60 to $444.90.

Light liquidation weighed on gold after a report showing a U.S. consumer confidence index reading at 102.3 for December, which was above forecasts and November's reading.

Estimated gold volume was an extremely light 2,500 contracts by 9 a.m. Many participants were out of the market for UK public holidays on Monday and Tuesday. London bullion trade will reopen on Wednesday.

Commitments of Traders data from the Commodity Futures Trading Commission issued after Monday's close showed the net fund long position in COMEX gold futures rose to 90,253 contracts as of Dec. 21 from 87,794 lots a week earlier.

The 6-year old euro hit a record high for the fourth trading day in a row, reaching $1.3643 before easing, as confidence grew that central banks would not act to prevent the dollar's decline.

Metals were firm in Asia where countries on the shores of the Indian Ocean were digging through the devastation caused by a series of tsunami waves on Sunday that may have claimed around 50,000 lives.

Safe haven buying and dollar weakness lifted precious metals futures on the Tokyo Commodity Exchange before trading closed for the year. TOCOM activity resumes on Jan. 4.

Investment funds chased gold to a 16-year high near $460 an ounce early this month as the dollar fell on worries about economic growth and ballooning U.S. current account and budget deficits.

Spot gold slipped to $443.30/4.00 an ounce from Monday's close in New York at $444.35/5.10.

March silver rose 4.0 cents to $7.045 an ounce, trading between $6.995 and $7.075. On Monday, it touched its highest since Dec. 10 at $7.09. Spot hit $6.99/7.02 from $6.95/99 previously.

CFTC data showed funds' net long exposure in COMEX silver fell to 37,664 lots on Dec. 21 from 43,225 a week earlier.

NYMEX January platinum rose $1 to $876 an ounce. Spot platinum was quoted at $865/870.

March palladium fell $2 to $188 an ounce. Spot was indicated at $185/190.

Floor brokers said the market was focused on rolling long positions out of January platinum.

Starting Dec. 30, first notice day for NYMEX platinum and palladium deliveries will occur on the last business day of the month preceding the contract month, instead of the first business day of the contract month. This will align NYMEX with the practice for COMEX metals deliveries.

28 Dez 2004 17:24

28.12.2004 17:17:36 Gold legt dank schwachem Dollar weiter zu

Zürich, 28. Dez (Reuters) - Gold hat am Dienstag dank des weiter schwachen Dollar erneut zugelegt. Da London, der europäische Haupthandelsplatz für das gelbe Metall, feiertagsbedingt weiter geschlossen war, blieben die Umsätze sehr dünn. Der Markt in London öffnet am Mittwoch nach den zweitägigen Weihnachtsfeiertagen wieder.

Gold notierte zu Handelsschluss in Europa bei 443,10/443,80 Dollar je Feinunze nach 442,40/443,20 Dollar am Montagabend. Das Tageshoch wurde bei 445 Dollar erreicht. Erneut war die Handelsspanne sehr eng. Das letzte Goldfixing vom vergangenen Freitagvormittag hatte auf 442,20 Dollar gelautet.

Motor das Preisanstiegs bei Gold war einmal mehr der nachgebende Dollar. Der Euro stieg auf ein neues Rekordhoch von 1,3643 Dollar, bevor er am Nachmittag angesichts unerwartet guter US-Konjunkturdaten wieder etwas abbröckelte. Devisenmarktexperten gehen allerdings von einem weiteren Absinken des Dollar aus.

Ein schwacher Dollar macht das in der US-Währung angeschriebene Gold für Anleger aus anderen Währungsräumen attraktiver.

Eine Schweizer Grossbank gab den Gold-Kilopreis mit 16.065/16.315 (Vorabend 16.149/16.399) sfr an.

par/och

28 Dez 2004 22:39

28.12.2004 20:40:43 NY gold ends off, silver up in thin year-end trade

NEW YORK, Dec 28 (Reuters) - Gold futures finished lower on Tuesday and other precious metals were mixed in trade thinned by year-end vacations and a UK bullion market holiday, dealers said.

Better-than-expected U.S. consumer confidence data lifted the dollar off a record low versus the euro and limited demand for gold, which investors often use as an alternative to the dollar.

"The confidence data put pressure on gold," said James Quinn, AG Edwards & Sons commodity commentator.

"The industrial metals, among them silver and copper, responded more favorably to prospects for lower oil prices. The talk there was weaker energy prices are going to be good for the global economy, and that's good for industry," Quinn said.

"I don't think you're going to see real aggressive end-of-the-year trade this week," he added. "We have an abbreviated session Thursday, and we're off Friday, so I think whatever we're going to do will be done early tomorrow."

On the COMEX division of the New York Mercantile Exchange, gold for February delivery lost 90 cents to end at $445.30 an ounce, after dealing between $446.60 and $444.

Estimated final volume was a very light 20,000 contracts. Many participants were out of the market for UK public holidays on Monday and Tuesday. London bullion trade will reopen on Wednesday.

New York metals will close early at around noon on Thursday and stay shut Friday, when New Year's Day will be observed.

The Tokyo Commodity Exchange is closed for the year. TOCOM activity resumes on Jan. 4.

U.S. consumer confidence grew to a 5-month high in December, bolstered by improved job opportunities and cheaper energy, a report from the Conference Board said. The index rose to 102.3, which was above forecasts and November's revised reading.

The 6-year-old euro hit a record high for the fourth trading day in a row, reaching $1.3643, as confidence grew that central banks would not act to prevent the dollar's decline. The euro was last around $1.3605.

Analysts said they saw plenty of reasons to buy gold with uncertainty about the outlook for the U.S. economy, overall dollar weakness and demand growing from the launch of U.S. exchange-traded funds.

But in order to test the upside again, the market will need some more downward corrections, some sources said. Gold was pegged in a broad trading band between $440 and $450.

Investment funds chased gold to a 16-year high near $460 an ounce early this month as the dollar fell on worries about economic growth and ballooning U.S. current account and budget deficits.

In Asia, metals were stable overnight as countries on the shores of the Indian Ocean were digging through the devastation caused by a series of tsunamis on Sunday that may have claimed around 50,000 lives.

In New York, spot gold last traded to $443.90/4.60 an ounce, compared with Monday's close at $444.35/5.10.

March silver rose 5.3 cents to $7.058 an ounce, trading from $6.96 to $7.075. On Monday, it touched its highest since Dec. 10 at $7.09. Spot silver fetched $7.00/7.03, up from $6.95/99 previously in New York.

CFTC data showed funds' net long exposure in COMEX silver fell to 37,664 lots on Dec. 21 from 43,225 a week earlier.

NYMEX front-month January platinum closed up 30 cents at $875.30 an ounce. Next active April futures rose 80 cents to $873.30. Spot was worth $865/870.

Floor brokers said the market was focused on rolling long positions out of January platinum.

Starting Dec. 30, first notice day for NYMEX platinum and palladium deliveries will occur on the last business day of the month preceding the contract month, instead of the first business day of the contract month. This will align NYMEX with the practice for COMEX metals deliveries.

March palladium fell $1 to $189 an ounce. Spot hit $185/190.

29 Dez 2004 17:23

29.12.2004 16:18:09 UPDATE 1-Europe gold slides in thin trade as euro retreats

(Updates to afternoon)

LONDON, Dec 29 (Reuters) - Gold fell sharply in thin trade on Wednesday afternoon in Europe, with liquidation hastened in thin volumes by the euro's retreat from earlier record peaks versus the dollar, dealers said.

Spot gold was quoted at $439.45/440.20 per troy ounce by 1512 GMT, compared with $443.90/444.60 late in New York on Tuesday. The metal was fixed on Wednesday afternoon at $440.25.

The euro briefly set a record high against the dollar $1.3646 -- marking a fresh peak for the fifth session running before it stepped back to $1.3608.

Dealers said that while the dollar's respite against the euro dented the allure of gold for non-U.S. investors -- bullion's journey south was temporary.

"I don't expect it to trade much lower. Given the overall dollar weakness, gold looks still cheap...this might encourage some bargain hunters and help the metal to crawl higher again," a European dealer said.

He said however that gold would need to strengthen through $440 again in order to decrease downward momentum.

Dollar weakness has been the dominant factor behind gold's three-year run upwards, with prices reaching their highest in 16-1/2 years this month at $456.75 as worries about the ability of the United States to fund its ballooning twin deficits weighed on the currency.

"With trading volumes still very thin ahead of the New Year gold is likely to find tough resistance ahead of $448-450 with support seen at $438-40," James Moore of TheBullionDesk.com said in a daily report.

Bullion dealers have said they expect the metal to head higher in 2005, with some seeing prices reaching $500.

In other precious metals, silver edged up to $6.99/7.02 from $6.95/6.99 late in New York on Tuesday.

Platinum saw speculative buying in thin trade, with spot prices rising to $867.00/871.00 from $865.00/870.00 previously. Palladium eased to $182.00/186.00 from $185.00/190.00.

29 Dez 2004 19:02

29.12.2004 17:37:45 Goldpreis fällt um knapp sieben Dollar

London/Zürich, 29. Dez (Reuters) - Der Goldpreis hat am Mittwoch bei dünnen Volumen wegen Positionen-Glattstellungen um knapp sieben Dollar nachgegeben. Zu den Glattstellungen sei es gekommen, nachdem der Euro zum Dollar sein neues Rekordhoch nicht halten konnte, hiess es im Markt. Amerikanische Händler berichteten zudem, Spekulanten hätten darauf gehofft, dass die Flutkatastrophe in Südostasien dort zu einer Bewegung hin zum sicheren Gold führen würde. Als dies ausblieb, hätten im Futures-Handel Verkäufe eingesetzt.

Angesichts des schwachen Dollars, der Gold für Investoren aus anderen Währungsräumen günstig macht, sollte der Preisrückgang aber rasch zu einem Ende kommen, hiess es weiter. Das gegenwärtige Niveau sollte sich als stabile Unterstützungslinie erweisen. Optimistische Händler wollten für das kommende Jahr einen Goldpreis von 500 Dollar je Feinunze nicht ausschliessen.

Gold notierte zu Handelsschluss in Europa bei 436,55/437,30 (Vorabend 443,10/443,80) Dollar je Feinunze. Das zweite Londoner Goldfixing lautete auf 440,25 Dollar nach 443,50 Dollar am Vormittag. Am Montag und Dienstag hatte in London kein Handel stattgefunden.

Eine Schweizer Grossbank gab den Gold-Kilopreis mit 15.833/16.083 (16.065/16.315 ) sfr an.

ajs/par

29 Dez 2004 20:57

29.12.2004 20:42:51 NY gold ends down on firm dollar, no tsunami rally

NEW YORK, Dec 29 (Reuters) - U.S. gold futures tumbled almost 2 percent on Wednesday and silver also closed lower, as precious metals were slammed by fund selling in volatile trading ahead of the New Year's holiday.

A firm U.S. dollar, as well as gold's failure to rise on safe-haven buying after the Indian Ocean tsunamis and fears of physical selling due to the calamitous events in Asia, touched off some of the long liquidation, dealers said.

"The disaster in Asia has surprisingly had very little impact in the financial markets, which is hard to understand," said William Adams at TheBullionDesk.com. "However, as gold and silver are an important form of savings in Asia, the devastation that this disaster has caused is bound to force many people to cash in their savings as they fight to survive and rebuild their lives and livelihoods."

"It is possible that precious metals prices have come off in anticipation of this extra supply," Adams said.

On the COMEX division of the New York Mercantile Exchange, gold for February delivery fell $8.30 to settle at $437 an ounce, after moving between $445.70 and $434.40, which marked its cheapest price since Dec. 10.

Estimated gold volume was brisk at 64,000 contracts, considering many participants were out of the market this week for vacations.

New York metals will close early at around noon Thursday and stay shut Friday in observance of New Year's Day which falls on a Saturday this year.

The Tokyo Commodity Exchange is closed until Jan. 4.

Floor traders said the first burst of selling came after the dollar bounced from a record low against the euro.

Gold's price often moves in opposition to the dollar as many investors use as an alternative to U.S. currency.

"We saw retail liquidation and that spread into the funds as we took out the 20-day and 50-day moving averages in gold," said a COMEX source.

The 6-year-old euro last fetched $1.3574. Earlier, it rose as high as $1.3646.

"I think we also saw liquidation after we couldn't rally safe-haven buying on this tsunami," added the COMEX trader. Gold historically has been seen as a store of value during times of instability.

In Asia, more than 77,000 were known to have died from Sunday's earthquake-generated waves that hit countries from Indonesia to India. An official with the Federation of Red Cross and Red Crescent Societies said the toll may hit 100,000.

In the gold market, dealer buying to cover short positions supported prices above session lows, traders said, but overall price direction was seen as guided by currency moves.

Brokers pegged chart support in COMEX gold at $435 and $432.90, with initial resistance at $443.

Funds chased gold to a 16-year high near $460 early this month as the dollar fell on worries about economic growth and ballooning U.S. current account and budget deficits.

Spot gold last priced at $435.30/6.05 an ounce, down from $443.90/4.60 at Tuesday's New York close. Wednesday's late fix in London was at $440.25.

March silver slid 23.1 cents to end at $6.827 an ounce, trading from $7.06 to $6.80, its cheapest since Dec. 20. Spot slid to $6.77/80 from $7.00/7.03 previously.

NYMEX front-month January platinum fell $12.80 to end at $862.50 an ounce. Next active April futures lost $13.30 to $860. Spot hit $862.50/867.50.

Floor brokers said the market was focused on rolling long positions out of January platinum.

Starting Dec. 30, first notice day for NYMEX platinum and palladium deliveries will occur on the last business day of the month preceding the contract month, instead of the first business day of the contract month. This will align NYMEX metals with the practice for COMEX metals deliveries.

March palladium fell $3.35 to $185.65 an ounce. Spot traded to $181/187.

30 Dez 2004 09:49

30.12.2004 06:09:36 Asia gold steady near $436/oz, more fund selling seen

(Updates to afternoon)

SINGAPORE, Dec 30 (Reuters) - Gold steadied at around $436 an on ounce in Asia on Thursday after volatile New York trade, but the yellow metal remained vulnerable to more fund selling ahead of New Year's holiday, dealers said.

Gold lost nearly $9 an ounce in the U.S. market on Wednesday, hitting a two-week low at $433.25 an ounce, due to year-end selling and a firmer dollar that took the shine off the yellow metal.

By 0454 GMT, spot gold was quoted at $436.10/436.75 an ounce, versus $435.30/436.05 last quoted in New York. Dealers pegged support at $433 an ounce and resistance at $437.

"I think we will see those levels -- $433 or $432 -- retested. It won't be a surprise to see a continuation of fund selling towards the end of the year," said one dealer in Sydney.

Trading in Asia was thin because of the absence of key player Japan but dealers reported fresh buying interest at the lower levels. Tokyo gold futures market is closed until January 4.

In Singapore, a centre for bullion trading in Southeast Asia, gold bars were steady at a premium of up to 10 U.S. cents an ounce to London spot prices .

"We see a bit of buying because prices are coming lower. (But) we are in a holiday mood," said Beh Hsia Wah, a dealer at United Overseas Bank in Singapore.

Dealers said tsunamis that killed nearly 80,000 people across the Indian Ocean coastline from Indonesia to Africa sparked limited safe-haven buying because investors, especially those in quake-prone Japan, were already on holiday.

Gold is used for investment for future sales in times of trouble as well as for jewellery and adornment.

Countries around the world sent rescue teams, food and millions of dollars in aid to the hardest-hit nations of Indonesia, Sri Lanka, India and Thailand to cope with the aftermath of the century's worst natural disaster.

Contaminated water, ruptured sewage systems and mosquito-borne diseases now stalk those who survived the killer wave on Sunday, triggered by a 9.0-magnitude underwater quake off the Indonesian island of Sumatra.

"I think the momentum now is that the funds are on holiday. So the disaster doesn't really move the market at the moment," said the Sydney dealer.

"Normally, when something bad happens in the world, gold will benefit from it," he added.

Funds chased gold to a 16-year high around $456.75 an ounce in early December on dollar weakness, geopolitical tension and high oil prices, which rekindles fears of inflation.

In the currency market, the euro firmed against the dollar to $1.3632 , close to a record high of $1.3647 set in the previous session.

Currency dealers expected further euro strength against other currencies because of persistent worries about the U.S. trade and budget deficits. A weaker dollar makes dollar-priced gold a bargain for holders of other currencies.

In other precious metals, spot platinum was quoted at $859/864 an ounce, versus $862.50/867.50 in New York. Sister metal palladium was at $183/188 an ounce, compared with $185/190 an ounce.

Silver was at $6.82/6.85 an ounce, compared with $6.77/6.80 in late U.S. trade.

30 Dez 2004 11:43

30.12.2004 10:23:13 Europe gold little changed early, focus on dollar

* Spot gold eases slightly to $434.90/435.65 by 0910 GMT from $435.30/6.05 quoted late in New York on Wednesday.

* Bullion recovers poise in thin trade after liquidation sparked by a retreating euro in the previous session.

* Euro last at $1.3620 after market fell from Wednesday's record peak at $1.3646.

* Silver firms slightly to $6.78/6.80 from $6.77/6.80 in New York on Wednesday.

* Platinum slips to $859.00/864.00 from $862.50/867.50, while palladium firms to $183.00/188.00 from $181.00/187.00.

30 Dez 2004 14:50

30.12.2004 13:12:18 Silver fixed lower, Europe gold tightly traded

* Silver fixed lower at 677.00 cents per ounce compared with previous fix at 697.00 cents. Spot market eases to $6.76/6.79 by 1207 GMT, from $6.77/6.80 in New York on Wednesday.

* Spot gold eases to $434.00/434.75 per troy ounce by 1207 GMT from $435.30/436.05 quoted late in New York on Wednesday.

* Bullion consolidating in thin trade after liquidation sparked by a retreating euro in the previous session.

* Euro last at $1.3607 after market fell from Wednesday's record $1.3646.

* Platinum slips to $855.00/860.00 from $862.50/867.50, while palladium firms to $183.00/187.00 from $181.00/187.00 previously.

30 Dez 2004 14:58

30.12.2004 12:14:29 Europe gold in tight ranges, eyes dollar/euro

LONDON, Dec 30 (Reuters) - Gold hovered either side of unchanged on Thursday morning in Europe as prices consolidated after the previous session's liquidation sparked by the dollar's brief respite from a record low against the euro, dealers said.

Spot gold stood at $434.50/435.25 by 1103 GMT, compared with $435.30/436.05 quoted late in New York on Wednesday.

Bullion lost almost 1.5 percent during European trade on Wednesday as the euro fell below $1.36 against the dollar -- giving participants an excuse to exit stale long positions.

But dealers did not expect the market's shift lower to shake gold out of its overall bull run.

"For the next day or two, I think gold will probably see more pressure to the downside," Peter Hillyard, head of European metal sales at ANZ Investment Bank, said, adding that slippage would be corrective.

"The market would need to hold above $428 in any move lower and I think it will," he added.

The dollar was back on the defensive on Thursday, as the euro moved close to the record peak set in the previous session at $1.3646.

Dollar weakness has been the dominant factor behind gold's three-year run upwards, with the dollar price reaching the highest in 16-1/2 years this month at $456.75 as worries about the ability of the United States to fund its ballooning twin deficits weighed on the currency.

Bullion dealers have said they expect the metal to head higher in 2005, with some seeing prices reaching $500.

"Looking further ahead it is unlikely that gold can withstand the supportive forces of a slipping dollar. This might trigger some buying interest in early 2005," Alexander Zumpfe of Dresdner Kleinwort Wasserstein said in a daily report.

In other precious metals, silver firmed slightly to $6.78/6.80 from $6.77/6.80 in New York on Wednesday.

Platinum slipped to $857.50/861.50 from $862.50/867.50, while palladium firmed marginally to $182.00/186.00 from $181.00/187.00.

30 Dez 2004 17:25

30.12.2004 16:19:31 COMEX gold trades quietly lower before early close

NEW YORK, Dec 30 (Reuters) - Gold futures softened but held above a prior near three-week low on Thursday morning in extremely light trading before an early close and Friday's holiday to mark the New Year.

A steady dollar kept gold just below unchanged, with dealer buying supporting the metal at lower prices after year-end fund long liquidation on Wednesday shoved it as low as $434.40, traders said.

"It's very quiet and there's no real follow-through liquidation," said one gold desk dealer. "It seems there isn't anyone in the market with the early close today."

Trading sources have said the tsunamis that killed at least 120,000 people across the Indian Ocean coastline from Indonesia to Africa had sparked only limited safe-haven buying this week because investors, especially those in earthquake-prone Japan, were already on holiday.

Gold is used for investment for future sales in times of trouble as well as for jewelry and adornment.

By 9:50 a.m. EST (1450 GMT) on the COMEX division of the New York Mercantile Exchange, gold for February delivery eased 30 cents to $436.70 an ounce, within a range of $437.90 to $434.70.

New York metals will close early at around noon and stay shut on Friday in observance of New Year's Day which falls on a Saturday this year.

The Tokyo Commodity Exchange is closed until Jan. 4.

The 6-year-old euro was barely changed at around $1.3598, hovering below Wednesday' record high of $1.3646.

Gold's price often moves in opposition to the dollar as many investors use the precious metal as an alternative to the U.S. currency.

Most currency traders believe the dollar's downtrend is intact and therefore the euro's bull run should have further to go in 2005.

Funds chased gold futures to a 16-year high at $458.70 early this month as the dollar fell on worries about economic growth and ballooning U.S. current account and budget deficits.

Chartists view support in COMEX gold at $435 and then at $432.90, with resistance seen looming at $443.

Spot gold fetched $435.10/5.60 an ounce, down slightly from $435.30/6.05 at the previous New York close. Thursday's early fix in London was at $435.15.

March silver rose 0.8 cent to $6.835 an ounce, trading $6.80 to $6.87. Spot was up at $6.79/82 from $6.77/6.80 previously.

NYMEX front-month January platinum slid 50 cents to $862 an ounce. Next active April futures were flat at $860. Spot reached $857/861.

Illiquid March palladium inched down 65 cents to $185 an ounce. Spot traded to $183/187.

Starting Dec. 30, first notice day for NYMEX platinum and palladium deliveries will occur on the last business day of the month preceding the contract month, instead of the first business day of the contract month, aligning NYMEX division metals with the practice for COMEX products.

30 Dez 2004 17:47

30.12.2004 16:41:56 UPDATE 1-Europe gold climbs in tight range, eyes dollar

(Updates to afternoon)

LONDON, Dec 30 (Reuters) - Gold clawed higher in Europe on Thursday as prices consolidated after the previous session's liquidation, which was sparked by the dollar's brief respite from a record low against the euro, dealers said.

Spot gold stood at $437.00/437.50 by 1525 GMT, compared with $435.30/436.05 quoted late in New York on Wednesday.

Bullion lost almost 1.5 percent during European trade on Wednesday as the euro fell below $1.36 against the dollar -- giving participants an excuse to exit stale long positions.

But dealers did not expect the market's shift lower to shake gold out of its overall bull run.

"The market is still very thin, but we found some buying on the back of the weaker dollar -- it looks like we may stay around these levels tomorrow as the U.S. market will be shut," one dealer said.

The dollar was back on the defensive on Thursday, as the euro moved close to the record peak set in the previous session at $1.3646.

Dollar weakness has been the dominant factor behind gold's three-year run upwards, with the metal's price reaching its highest in 16-1/2 years this month at $456.75 as worries about the ability of the United States to fund its ballooning twin deficits weighed on the currency.

Bullion dealers have said they expect gold prices to rise in 2005, with some seeing prices reaching $500.

"Looking further ahead it is unlikely that gold can withstand the supportive forces of a slipping dollar. This might trigger some buying interest in early 2005," Alexander Zumpfe of Dresdner Kleinwort Wasserstein said in a daily report.

In other precious metals, silver firmed to $6.83/6.86 from $6.77/6.80 in New York on Wednesday.

Platinum slipped to $857.00/861.00 from $862.50/867.50, while palladium firmed marginally to $183.00/187.00 from $181.00/187.00.

Baker reflects on silver, Hecla's future
Dorothy Kosich
'30-DEC-04 06:00'

SPOKANE, Washington--(Mineweb.com) Hecla Mining President and CEO Phillips "Phil" S. Baker heads a century-old Coeur d'Alene, Idaho-based mining company he feels offers an excellent future as a mid-tier, gold equivalent mining company.

Starting off as an accountant, who rose quickly through the ranks to become CFO, Baker has shepherded major deals for Pegasus and Battle Mountain Gold prior to joining Hecla in 1991.

Some of the projects were not exactly a cinch as Baker can attest. As CFO and heir apparent for Battle Mountain Gold, Baker spent years prowling the halls of Congress, and enduring countless anti-mining tirades from the world's news media, international organizations, and environmental groups for two unpopular mining projects--the New World Project near Yellowstone, and the Crown Jewel project in Washington state.

Baker, however, finally got a break from the anti-mining world stage when he joined Hecla, a 114-year-old company, which is one of the grand ladies of Idaho's internationally renown Silver Valley. Hecla has four silver and gold mines operating in the U.S., Venezuela, and Mexico. The company's estimated production for this year is forecast at 8 million ounces of silver and 215,000 ounces of gold with total average cash costs estimated in the range of $185/oz of gold and less than $2.00/oz of silver.

Despite the fact that Hecla produces both gold and silver, Baker is definitely a silver aficionado. Earlier this month, he organized and hosted a day-long Silver Summit at the Northwest Mining Association (NWMA). Molded in the style of the dynamic individuals at the helm of silver companies in North America, Baker is a 44-year-old, tall, ebullient, personable, bigger-than-life Texan, who actually got his start in his native state's oil and gas industry.

Earlier this month, Baker agreed to an interview with Mineweb that actually spanned several hours of give-and-take discussion. No topic was off-limits or even a sore point or bone of contention, a rare trait when interviewing mining company executives in the wake of Sarbanes Oxley.

SILVER'S FUTURE

Baker feels that those billions of ounces of silver that came onto the market during the days of the Hunt Brothers are largely gone. "Certainly until the end of the decade, the outlook for silver looks tremendous," he predicted.

"Silver is in everything. The reason it's in everything is because it's been so cheap. The silver price is going to have to be at a much higher level for a significant period of time before people will find alterntives. In some cases, there aren't very good alternatives."

Baker feels that technology is leading the way on the use of silver. Even Bill Gates is rumored to have a 10-15% investment in silver, he speculated, meaning that more silver consumption uses are probably on the horizon.

Hecla organized the NWMA Silver Summit because "we want to encourage geologists to look for silver because there is a shortage of good quality silver assets. We're trying to be supportive of the industry," Baker explained.

Baker anticipates that the silver price will trade in a range of $7/oz or plus and may rise as high as $10/oz. However, in managing its operations, Hecla uses a sub-$7 price scenario, according to Baker. "I think the outlook for gold is very good," Baker said. "Again, though, when we budget, we try to force the organization to operate at lower prices."

Meanwhile, Hecla's hedging to acquire La Camorra, Venezuela's largest gold mine in operation, will end this month. To acquire a mine or assure the viability of a project, Baker said Hecla is willing to consider hedging.

HECLA'S OUTLOOK

Baker joined Battle Mountain Gold in 1986, then went to Pegasus, returned to Battle Mountain, and subsequently joined Hecla. He joined Hecla when gold was around $250 to $300 per ounce. At that time, he realized that the company could make money at those prices given the quality of its assets. "That was very, very attractive to me because I believed the prices were going to go up for gold and silver."

Nevertheless, Baker admitted that "it's been disappointing that we haven't seen stock prices grow as much as I thought." He believes that the answer to that dilemma may lie in Hecla's reserve/resource position. In a November news release, he declared that "our emphasis now is on expanding our resource and reserve base, which we expect to grow significantly over the next two to three years, leading to increased production in future years." However, he added, Hecla doesn't expect to yield substantive results until the latter half of the current decade or the beginning of the next decade. "This is not going to do a whole lot for us over the next 18 months."

Unlike a number of other companies, Hecla enjoys a perspective that comes from a century of mining. "You look at all of these promotional companies and they are serving a purpose. But, most of them do not expect to develop these properties and live with them. We're going to develop them and have to live with the decisions that we make, maybe for decades," Baker said.

Hecla ranks at the smaller end of mid-tier mining companies because it is a gold-equivalent basis roughly 350,000-ounce producer. It also means that projects the big major miners will pass on will be far more meaningful to a Hecla. "We'll have the opportunity to pick up more things than other guys will be willing to do and, subsequently, go up the scale," Baker predicted.

However, Baker isn't inclined to have Hecla invest in junior mining companies. First, Hecla can't afford to make that investment. Secondly, "I have not seen that be terribly successful," Baker explained. "There have been a few examples where it has just about put companies under or has put them under."

Nevertheless, Hecla would love to do joint ventures. However, Baker is wary of a commitment made on a contractural basis, rather than by the geology. "We're going to be judicious on entering into ventures and creating these commitment schedules that rule our decisions, rather than geology, " he explained.

Baker explained that "the market understands the difference between a vein miner and these big open pits. But, it's hard for people to make that leap of faith that they're not taking on an excessive amount of geological risk by relying on us finding more ore at depth." he explained.

"At the end of the day, we've recognize that and that's why you're seeing the sort of exploration spending ($25 million in 2004) that we're making. We think over the course of two or three years, we will be able to build up our resource base to a certain degree. It's not going to be magical. It's not going to be a big open pit, the nature of the geometry is such that you're never going to get that," Baker said. "But, maybe we can get a little more in front of us and get people a little more confident that, when we grow our production, it's going to be sustainable."

"With the amount of money that has flown into this industry, people are going to make some big, big mistakes and some assets are going to come very cheap," Baker declared. He feels that Hecla mainly competes with Coeur d'Alene, Cambior, Placer, Goldcorp, Agnico-Eagle, Meridian and Ridgemont in the underground mining category.

"The whole industry is under tremendous pressure to do acquisitions. People are going to do some stupid transactions, I suspect," Baker suggested, adding that Hecla also faces that pressure. "While reserves appear to be an issue on a valuation standpoint--it puts limits on where our stock price will go--we don't have a lot of pressure where people are saying `you are running out of reserves tomorrow.'

"The market seems to have gotten over that. But having said that, they're still not willing to say, `Okay, at the Lucky Friday, you've been doing it for 15 years, you're going to do it for another 20 years. I'm going to value it that way.' That's what we're trying to do with the drilling is to move people along that curve," Baker explained.

Hecla is definitely in an acquisition mode, with its top M&A priority of a larger reserve/resource base. The company also is looking for something "jurisdictionally that gives us a jumping off point to do more," he added. "Hecla did this in the past. They went in and got very discrete assets and they operated those things and that was it. It wasn't a strategic acquisition that says, if I do this, I am now in a strategic position to be able do these other things."

"We're not going to do just one-off transactions," he declared, "it's got to lead someplace."

"Ideally, we'd like to be in a position where we have one or more of these large silver assets that are of high quality. ...There is sort of a spectrum of these things that we would like to have. We want to stay committed to being a silver producer," he added. "We would love to see the company three, four, five times its size."

Baker said he doesn't view Hecla as a potential takeover target. "Having this small resource base is a two-edged sword," he remarked. "It's almost a protection against being taken over. ..There aren't a lot of companies interested in doing the sort of mining that we're doing." Nonetheless, Baker feels Hecla offers an advantage as a vein miner. "What would be nice is if you could take on our vein mines, and throw in a couple of large tonnage mines that we could get maybe similar valuation," he added.

Hecla has been mining in Idaho's Silver Valley for 100 years, and is in litigation with the government over environmental liabilities stemming from historic mining in the entire valley. Meanwhile, the company doesn't seem to attract the attention of the anti-mining NGOs.

Hecla's stock performance declined in early December although metals prices were higher, and more exploration was underway.

Hecla views Venezuela as the place "where we can move and grow the fastest," according to Baker. For instance, Hecla was able to go into production at Mina Isadora in only four years. "There's more of those types of opportunities within the land package that we already have, and we're trying to acquire more land," Baker said. Mexico also offers Hecla a good future in Baker's estimation. "I think some guys are going to break their picks with the ejdios," Baker speculated, suggesting that Hecla's ejido expertise will allow the company to step in.

While China and Asia will be a driver for some time, Baker said Hecla is not actively trying to do something operationally in the area. For now, Hecla is largely sticking to the Americas.

Hecla is looking for both gold and silver properties, which offer both underground and open pit opportunities. "We're not the right guys for earlier staged projects," he explained, adding, however, that exceptions exist in Venezuela, Mexico and Nevada. Hecla is hoping for future projects that are 50,000 to 60,000 ounce of annual gold production, and/or 300,000 to 400,000 ounces of reserves and resources.

Hecla's silver criteria is tougher. The company will consider polymetallic deposits if silver is the predominate metal. "It's got to have cost structure that we think can survive," Baker said. "We realize that we have to look further afield. There are some countries that are not at the top of our list. It's got to be a spectacular sort of deal."

30 Dez 2004 18:40

30.12.2004 17:16:43 Gold erholt sich in Europa von Vortagesverlusten

London/Zürich, 30. Dez (Reuters) - Gold hat sich am Donnerstag in Europa etwas von den Vortagesverlusten erholt. Insgesamt bewegte sich das gelbe Metall in engen Spannen. Gegen Handelsschluss in Europa notierte die Feinunze bei 437,00/437,50 Dollar verglichen mit 436,55/437,30 Dollar am Vorabend.

Nachdem Gold am Vortag im Zuge des sich etwas erholenden Dollar knapp sieben Dollar verloren hatte, setzte eine technische Gegenbewegung ein, so Händler. Der Motor für die Preisentwicklung bleiben weiterhin die Devisenmärkte, hiess es. Der Euro zog am Nachmittag nach Veröffentlichung eines schlechter als erwarteten Einkaufsmanagerindex für Chicago für Dezember auf 1,3630 Dollar an. Am Mittwoch war es nach dem Erreichen eines neuen Rekordhochs von 1,3646 Dollar zu Gewinnmitnahmen in der Einheitswährung gekommen.

Ein schwacher Dollar macht das in der US-Währung angeschriebene Gold für Investoren aus anderen Währungsräumen günstiger.

Die Umsätze an den Edelmetallmärkten blieben saisonal bedingt dünn und dürften sich wohl auch am Freitag, wenn die Märkte in den USA geschlossen bleiben, nicht beleben. Marktteilnehmer schliessen nicht aus, dass Gold Anfang 2005 die Marke von 500 Dollar knacken könnte, weil die Schwäche der US-Währung angesichts der hohen amerikanischen Haushalts- und Leistungsbilanzdefizite anhalten dürfte. Anfang Dezember hatte Gold mit 456,75 Dollar den höchsten Stand sei 16-1/2 Jahren erreicht.

Das Nachmittagsfixing in London lautete auf 435,60 Dollar nach 435,15 Dollar am Vormittag und 440,25 Dollar am Mittwochnachmittag.

Eine Schweizer Grossbank gab den Gold-Kilopreis mit 15.840/16.090 (Vorabend 15.833/16.083) sfr an.

Der Widerstand regt sich............

30 Dez 2004 20:53

30.12.2004 20:42:48 Pro-mining journalist released after Peru kidnap

By Eduardo Orozco

LIMA, Peru, Dec 30 (Reuters) - A Peruvian journalist seized by mob of armed villagers in a remote Andean jungle, was released on Thursday four days after he was abducted, beaten and tied to a post for supporting a copper mining project, police said.

"He was rescued in the early hours with bruises all over his body from the beatings he received from the peasants, who released him when he promised to be more objective on the subject of mining," said Praxedes Guerrero, police chief in the small town of Huancabamba near Peru's border with Ecuador.

Duber Mauriola, who runs a small local radio station, was seized on Monday by locals fearing contamination of their land from the British-run Rio Blanco mine project. He was forced to walk 10 hours across the Andes to the village of Huancacarpa, where his captors tied him up in the town square.

Guerrero said the release of Mauriola was negotiated. "We agreed not to press charges against (the mob) but we arrested four people in Huancabamba for inciting the kidnap," he said.

One of the detainees was Josefa Adrianzen, a local environmental official briefly abducted by another group in an apparent reprisal, and later turned over to the police.

Mauriola's captors accused him of supporting exploration by Britain's Monterrico Metals Plc (/MNA.L), which is investing $370 million in Rio Blanco and hopes it will become Peru's No. 2 copper mine. Peru is the world's No. 5 copper producer.

Locals fear the mine will destroy their agricultural livelihood. Farms in the area produce corn, wheat, potatoes, beans and limes.

MOB JUSTICE
Several times this year, local communities in remote areas of Peru largely forgotten by the state have brutally taken the law into their own hands.

In April, the mayor of an Andean village near Bolivia was beaten to death by a mob accusing him of corruption.

Chilling TV pictures in October showed a mob setting fire to a man they accused of stealing a gas canister, and the same month peasants beat to death a man for stealing five hens.

There have been similar cases of vigilante justice in the Peruvian capital Lima, as well as in Bolivia and Mexico.

Protests against mining -- an industry dominated here by major international groups -- have also multiplied. Though mining is the backbone of Peru's economy, and many projects are in dirt-poor regions, locals increasingly fear their traditional farming livelihoods will be destroyed.

Locals in a lush lime- and mango-producing valley claimed victory last year when the big Tambogrande mining project being developed by Canada's Manhattan Minerals Corp. (/MAN.TO) was dropped after months of protests.

Protests also forced U.S.-based Newmont Mining Corp. (/NEM.N) and Peru's Compania Minera Buenaventura (/BUEv.LM)(/BVN.N) to scrap gold exploration at their Cerro Quilish site last month.

Rio Blanco has itself also been targeted in the past: around 1,000 peasants armed with shotguns, machetes and sticks marched on the project in April.

30 Dez 2004 20:54

30.12.2004 19:25:05 COMEX gold rises, ends '04 up 6 percent

NEW YORK, Dec 30 (Reuters) - Gold futures closed higher on Thursday in last-ditch trading before the New Year's holiday, as a lower dollar helped boost the precious metal above previous three-week lows, traders said.

Adding to the currency-based bounce was moderate dealer interest in the yellow metal at cheaper prices following Wednesday's bout of year-end fund liquidation, they added.

"There were not too many market participants in today, and so there's a bit of book squaring," said Paul McLeod, vice president of precious metals at Commerzbank. "We ended right back on the 50-day moving average, so we'll see how it breaks in the new year."

The market should stay volatile into 2005, but gold's upward trend is likely to continue after prices rose nearly 6 percent this year, McLeod added.

"I don't think the bull run is over, but it's looking a little tired out. I think next year we will see higher highs but not yet a $500 price," he said. "I think $470 is a good high to shoot for."

On the COMEX division of the New York Mercantile Exchange, gold for February delivery rose $1.40 to $438.40 an ounce, within a session range of $434.70 to $439.80.

Estimated turnover was a quiet 23,000 contracts, versus volume of 64,000 Wednesday, when February gold slid as low as $434.40, its cheapest since Dec. 10.

"It's very quiet and there's no real follow-through liquidation," one desk dealer said during early trading.

New York metals will be shut on Friday in observance of New Year's Day, which falls on a Saturday this year.

Trading sources have said the tsunamis that killed at least 120,000 people across the Indian Ocean coastline from Indonesia to Africa sparked limited safe-haven buying in gold this week because investors, especially those in earthquake-prone Japan, were already on holiday.

Gold is used for investment for future sales in times of trouble as well as for jewelry and adornment.

In the foreign exchange, the dollar weakened after a below-consensus snapshot of regional U.S. business activity kept it under selling pressure. The euro rose to $1.3625 in late trade, not far from Wednesday's record high at $1.3646.

Gold tends to move in opposition to the dollar as many investors use the metal as an alternative to the greenback.

Most currency traders believe the dollar's downtrend is intact and, therefore, the euro's bull run should have further to go in 2005, which in theory should bolster gold prices.

Funds chased COMEX gold to a 16-year high at $458.70 early this month as the dollar fell on worries about economic growth and ballooning U.S. current account and budget deficits.

Spot gold priced at $437.20/7.70 an ounce, above Wednesday's New York closing quote at $435.30/6.05. Thursday's afternoon fix in London was at $435.60.

March silver rose 1.0 cent to end at $6.837 an ounce, trading $6.80 to $6.885. Spot was indicated at $6.79/82 versus $6.77/6.80 previously.

Front-month January platinum rose $1.20 to $863.70 an ounce. Next active April futures dipped 30 cents to $859.70. Spot platinum was at $856.50/861.50.

Thinly-traded March palladium eased 40 cents to $185.25 an ounce. Spot traded to $182/188.