Commodities » Precious Metals

Gold and silver daily review (August 10, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Precious metals prices ended lower yesterday, snapping an eighth-session winning streak, pressured by a stronger dollar ahead of a closely watched policy statement by the Federal Reserve.

IN FOCUS

- The world's largest gold-backed exchange traded fund, SPDR Gold Trust said its holdings fell to 1282.75 tonnes by August 9, down by 18.079 tonnes from the previous business day.

- The world's largest silver-backed exchange-traded fund, the iShares Silver Trust, said its holdings stood at 9151.03 tonnes as of August 9, down by 34.26 tonnes from the previous business day.

- Yukon Nevada Gold Corp reached steady state production. The Plant operated during July and produced gold pro-rated at 100,000 ounces per year on an annualized basis

- Peru has given the green light to Newmont Mining and Buenaventura to begin operations at the La Zanja gold mine, which will produce more than 100,000 ounces a year, Buenaventura said on Friday.

- Kinross Gold Corp made the all-stock offer for Red Back, saying Red Back's two mines would help propel its annual output to about 2.6 million ounces by the end of 2010 and about 3.9 million ounces by 2015, making it a comfortable top-tier gold producer.

FUNDAMENTAL OUTLOOK

Precious metals prices are trading a tad lower on COMEX today. Precious metals prices are expected to remain under pressure in early trading session on account of a stronger dollar overseas. But, any major dip in prices can be used as a good buying opportunity in precious metals.