Precious Metals Market Review: Gold Surges on Technical Trades

Strategic Insights -

The New York precious metals market experienced a significant surge in gold and silver futures trading on Tuesday, driven by technical chart-based buying. Despite the price movements, analysts noted that the unusually light volume after Christmas might have exaggerated the magnitude of the price changes. This article provides an overview of the key takeaways from the market review, including notable developments in the industry.

Key Takeaways:

  • New York gold and silver futures finished sharply higher on Tuesday due to technical chart-based buying.
  • Volume remained unusually light after Christmas, potentially exaggerating the price movements.
  • Freeport-McMoRan Copper & Gold Inc. (FCX) has been shielded by a web of political and military ties from pressures to clean up waste dumping practices at its mine in Indonesia.
  • Newmont Mining Corp.'s (NEM) South American unit expects investments of $300 million in the Yanacocha gold mine operations in 2006.
  • Russia's Bank of Khanty-Mansiysk has purchased 31.9 tonnes of gold and 130 tonnes of silver so far this year.
  • Crosby Capital Partners Inc. has expressed concerns over Antofagasta PLC's deal to acquire a 19.95% stake in Tethyan Copper Co. Ltd.
  • Barrick Gold Corp.'s (ABX) CEO, Greg Wilkins, has stated that a breakup of the company's bid to buy Placer Dome Inc. (PDG) for $10.4 billion is unlikely.
  • Placer Dome Inc. (PDG) has agreed to a friendly takeover deal with Barrick Gold Corp. (ABX) for $10.4 billion.

Statistics:

  • $300 million: Expected investments in the Yanacocha gold mine operations in 2006 by Newmont Mining Corp.'s (NEM) South American unit.
  • $200 million: Spent on waste cleanup at the Papua New Guinea mine's subsidiary, PT Freeport Indonesia, in 2004.
  • 19.95%: Stake acquired by Antofagasta PLC (ANTO.LN) in Tethyan Copper Co. Ltd. (TYC.AU) through the deal.
  • 31.9 tonnes: Gold purchased by Russia's Bank of Khanty-Mansiysk so far this year.
  • 130 tonnes: Silver purchased by Russia's Bank of Khanty-Mansiysk so far this year.
  • $10.4 billion: Price tag for Barrick Gold Corp.'s (ABX) bid to buy Placer Dome Inc. (PDG).

Sources:

  • Dow Jones Commodities News via Comtex
  • The New York Times
  • Dow Jones Newswires
  • El Comercio
  • Prime-Tass
  • Crosby Capital Partners Inc.
  • Barrick Gold Corp.
  • Placer Dome Inc.