O3 Mining investor knocks Agnico offer
Agnico, the second-largest gold miner by stock market value, agreed to acquire O3 last month for about C$204 million.
After an uneventful week where gold stayed within striking distance of $1,200 an ounce, Friday saw another big move in the price in heavy volume.
The first gap down came right at the open, when a huge sell order of more than 1.2 million ounces dropped the price out of it’s trading range.
Then around mid-day another series of trades took the price down to a day low of $1,163.90, a drop of 2.8% from yesterday’s close.
For the session volumes were heavy with the most active contract trading the equivalent of 24 million ounces, almost double the three-month average.
A freefall in the price of oil – down 10% on the day – and doubts about the outcome of the Swiss vote on the country’s gold reserves could partly explain the drop.
But the surprise scrapping of import duties by top gold consumer India should have buoyed the price. Even before the lifting of the curbs, India’s import of gold rocketed and providing a floor for the physical market.
By the close of trade on the Comex division of the New York Mercantile Exchange gold for February delivery was changing hands not far off the lows at $1,165.80 an ounce, down $31.70.
5 Comments
geeee
That is not heavy volume for recent gold trading days over the last month & I note that the paper boys managed on holiday trading to make gold give back all the gains in November just like they did for October in the final days on rather weak volume. The games continue with huge market paper forces at work & few in the media ever talk about the divergence between physical gold demand all over the planet and paper games on the CRIMEX and London fixes. Very little of this market passes the smell test but what else is new in the world of fiat currency wars and constant debasement by central bankers as they race to try and save the system from collapse, gives me the warm and fuzzies, NOT!!! Someday gold will really reflect reality as it should but it seems not today. This will not end well and you will not enjoy it!!
AU
Gold goes down and it’s a conspiracy. Typical gold bug bs.
Gold peaked when the vending machines showed up. Hyperbole brought on by feeding off each others’ blind faith. I’ll take Costco shares over a bar of gold any day…including 20 years from now.
Ken Chan
the Wall Street guys play the same game again and again, they would let gold go up like its a bull trend, then all of a sudden, they sell it by millions of ozs
Mike
It’s the only way to keep the US dollar high so the World Bank with a few others are selling big time. It’s a game they can do for so long as the greenback will go down eventually. The world slowly moves away from the dollar, there’s only one inevitable possibility…the dollar going down as well as the economy.
waleed
It is, in my point of view, a political game as the price of oil is going down due to point between America and Russia, China is also playing a key role in deteriorating dollar which would devaluate the Dollar. I have also lost my investment in gold as well when my margin level fall beyond 20% and i lost my total investment. The students must also provide assignment writing service to understand the change.