Best of the Week
Most Popular
1.Gold Price Trend Forecast, Where are the Gold Traders? - Bob_Loukas
2.Stocks Bear Market of 2017 Begins? Shorting the Dow At its Peak! - Nadeem_Walayat
3.Betting on President Trump Leaving Office Early, Presidency End Date - Betfair Market - Nadeem_Walayat
4.Why Stock Market Analysts Will be Wrong About 2017 - Clif_Droke
5.Is This The Best Way For Investors To Play The Electric Car Boom - OilPrice_Com
6.Silver Price 2017 Trend Forecast Update - Video - Nadeem_Walayat
7.Gold Price Set For Very Bullish 2017, Trend Forecast - Austin_Galt
8.10 Things I learned From Meetings With Trump’s Transition Team - - John_Mauldin
9.How Investors Can Profit From Trumps Military Ambitions - OilPrice_Com
10.Channel 4 War on 'Fake News', Forgets Own Alt Reality Propaganda Broadcasting - Nadeem_Walayat
Last 7 days
Stock Market SPX New All-time Highs Continue - 25th Feb 17
POWERFUL GOLD & SILVER COILED SPRINGS: Important Charts You Have To See - 25th Feb 17
Underperformance in Gold Stocks Argues for Interim Peak - 25th Feb 17
Watch What Happens When Silver Price Hits $26...  - 25th Feb 17
Gold Futures Buying Yet to Start - 25th Feb 17
When the Stock Market Flying Pig Tops - 24th Feb 17
Gold, Second Fed Hike and Interest Rates - 24th Feb 17
Bitcoin Price Hits Record High! - 24th Feb 17
Another Stock Market Bubble? Bring it On! - 24th Feb 17
What Investors Need To Know About U.S. Money Market Funds? - 24th Feb 17
When Was America’s Peak Wealth? - 24th Feb 17
The Oscars – Worth Their Weight in Gold? - 24th Feb 17
The Best Reasons to Buy Gold in the Age of Trump - 22nd Feb 17
Silver, The Return of Stagflation - 22nd Feb 17
Why EU BrExit Single Market Access Hard line is European Union Committing Suicide - 22nd Feb 17
Gold: Short End US Rates Matter More Than Long End Real Yields - 22nd Feb 17
CONTINENTAL RESOURCES: Example Of What Is Horribly Wrong With The U.S. Shale Oil Industry - 22nd Feb 17
Here’s Proof Rising Rates Are Good for Gold - 21st Feb 17
Gold and Silver Weekly Update - 21st Feb 17
US Dollar and Gold Battle of the Cycles - 21st Feb 17
NSA and CIA is the Enemy of the People - 21st Feb 17
Big Moves in the World Stock Markets - Big Bases - 21st Feb 17
Stock Market Uptrend Continues - 21st Feb 17
Brent Crude Oil Price Technical Update: Low Volatility Leads to High Volatility - 20th Feb 17
Trump’s Tax System Could Spark The Wave Of Self-Employment - 20th Feb 17
Here’s How to Stay Ahead of Machines and AI - 20th Feb 17
Warning Signs Of Instability In Russia - 20th Feb 17
Warning: This Energy Investment Could Wreak Havoc On Your Portfolio - 20th Feb 17
The Mother of All Financial Bubbles will be Unimaginably Destructive when it Bursts - 19th Feb 17
Gold’s Fundamentals Strengthen - 18th Feb 17
The Flynn Fiascom, the Trump Revolution Ends in a Whimper - 18th Feb 17
Not Nearly Enough Economic Growth To Keep Growing - 18th Feb 17
SPX Stocks Bull Market Continues to make New Highs - 18th Feb 17
China Disaster to Trigger Gold Run, Trump to Appoint 5 of 7 Fed Governors - 18th Feb 17

Market Oracle FREE Newsletter

State of Global Markets 2017 - Report

South Africa Unrest To Affect Gold Bullion Supply And Support Gold Price

Commodities / Gold and Silver 2012 Sep 27, 2012 - 10:25 AM GMT

By: GoldCore

Commodities

Best Financial Markets Analysis ArticleToday’s AM fix was USD 1,755.25, EUR 1,365.32, and GBP 1,084.16 per ounce.
Yesterday’s AM fix was USD 1,763.75, EUR 1,369.80 and GBP 1,089.07 per ounce.

Silver is trading at $34.10/oz, €26.62/oz and £21.13/oz. Platinum is trading at $1,647.00/oz, palladium at $632.40/oz and rhodium at $1,075/oz.


Gold fell $10.10 or 0.57% in New York yesterday and closed at $1,751.30. Silver hit a low of $33.32, but it recovered and rallied back finishing with a gain of 0.56%.

Gold inched up on Thursday but continued tension over the eurozone debt crisis has bolstered the dollar, weakened oil and is expected to limit bullions gains.

Protests against government austerity are on the rise in Greece and Spain and have led to violence against police in Athens.

Downward pressure on oil is negative for gold. Higher oil prices, a sign of soaring inflation, sends investors to gold as a hedge to rising costs. The correlation between oil and gold was at 0.367, just under a 6 month high hit earlier in the week. A reading of 1 shows perfect correlation and the two assets move in tandem.

SPDR Gold Trust ETF saw its largest 1 day drop in holdings since May (10 tonnes), but this may be due to end of quarter window dressing.

Gold will continue to be supported by the ‘US Fiscal Cliff’ which is the US government deadline to agree on a plan to decrease the federal budget or trigger $600 billion in spending cuts, which will create austerity for the people and a huge knock to an already unstable US economy.

In South Africa, gold mine strikes ceased nearly 39% of production, at AngloGold Ashanti Ltd. (ANG) and Gold Fields Ltd. (GFI), as labour walkouts spread across the country amid demands for above-inflation pay increases.

Today, AngloGold, the world’s 3rd largest gold producer, said all of its South African mines have been stopped. Gold Fields lost nearly 32,000 ounces, or metric ton, of output because of strikes at its KDC and Beatrix sites. The Kopanang mine was shut down after a strike last week that began with 5,000 workers, and AngloGold decided to halt all South African operations as most of its 35,000 employees have joined the industrial action.

In addition to the mining strike there is also a transport strike. More than 20,000 freight transport workers are also on strike, demanding a wage increase of 12%, reports the South African Press Association. Unions rejected an offer of a staggered increase of 8.5% next March followed by an additional 0.5% in September, SAPA said.

The Lonmin Plc’s Marikana platinum mine northwest of Johannesburg endured a six-week strike that took 46 lives and concluded last week with miners receiving pay increases of almost 22%, which is four times the country’s August inflation rate.

Due to the settlement on Sept. 20th with Lonmin platinum workers, gold miners have decided on wildcat strikes instead of using the National Union of Mineworkers representative’s to negotiate with employers.

AngloGold workers on strike at the Kopanang mine since Sept. 10th were told by a company spokesman, “Wages are not something that’s negotiated at company level, and won’t be.”

While the company received wage demands today from the strikers, it doesn’t intend to negotiate directly with them.

Production costs for Mining companies in South Africa have been soaring as above-inflation hikes in wage and electricity costs have risen in the past 3 years. Power costs rose 26% in 2011 and 25% in 2010. Mines have to dig deeper and it is harder to yield output as orebodies continue to dwindle.

South Africa’s gold yield was 1.35 million ounces this quarter, according to the Chamber of Mines. It was the 5th largest gold producing nation in 2010, according to GFMS Ltd. However, South Africa’s production has been decreasing every year.

In total there are about 100,000 miners and transportation workers on strike in South Africa.

Certainly this disruption in production will cause a contraction in supply, while consumer demand and central bank demand in the yellow metal are on the rise, compiled with the central banks printing money to bolster their sagging economies - all signal a very bullish environment for gold.

For the latest news and commentary on financial markets and gold please follow us on Twitter.

GOLDNOMICS - CASH OR GOLD BULLION?




'GoldNomics' can be viewed by clicking on the image above or on our YouTube channel:
www.youtube.com/goldcorelimited

This update can be found on the GoldCore blog here.

Yours sincerely,
Mark O'Byrne
Exective Director

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W www.goldcore.com

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

GoldCore Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife