Gold

US stocks were driven down at Tuesday’s start with the Dow Jones falling as much as 250 points as Belgium's Dexia become the first Eurozone bank to be bailed out before making a dramatic about turn during the last hour of trade to end up 153 points or 1.4%. The S&P 500 dropped shortly after the opening bell only to end up 2.25% at 1,124 points, but is still down 18% over the last four months. The resource-heavy TSX composite index were almost at a two-year low before making up some of the lost ground to end down just two-thirds of a percent. Gold could not capitalize on the ongoing volatility and fell further after hours to trade at $1,623/oz. Bullion had briefly dipped below $1,600/oz before noon.

CME Group, which operates the largest  US futures exchanges, will from today increase to $500 million the amount of physical gold its US clearing members can post as collateral for margin requirements, more than double the existing $200 million. The Chicago-based firm which first accepted bullion two years ago is the latest of a number of  exchanges including IntercontinentalExchange and other financial services companies like JP Morgan that accept the use of gold as collateral, which essentially places the precious metal in the top tier of asset classes alongside government bonds and currencies. The World Gold Council is also lobbying to have the Basel Committee on Banking Supervision  do the same, which could have widespread repercussions for bullion.

Globex Mining Enterprises Inc. CA:GMX 0.00% (frankfurt:G1M)(otcqx:GLBXF) is pleased to provide shareholders with information regarding a recent drill hole completed on our 100% owned Beacon claim, east of Val D'Or, Quebec based upon recent geological interpretation. ROUYN-NORANDA, QUEBEC, CANADA--(Marketwire - Oct. 4, 2011) - GLOBEX MINING ENTERPRISES INC. (TSX:GMX)(FRANKFURT:G1M)(OTCQX:GLBXF) is pleased to provide shareholders with information regarding a recent drill hole completed on our 100% owne...

Explor Resources Inc. (TSX VENTURE:EXS) (PINK SHEETS:EXSFF) (FRANKFURT:E1H) is pleased to announce the beginning of a 30,000 meter drilling program on the Timmins Porcupine West Property. ROUYN-NORANDA, CANADA--(Marketwire - Oct. 4, 2011) - Explor Resources Inc. (TSX VENTURE:EXS) (PINK SHEETS:EXSFF) (FRANKFURT:E1H) is pleased to announce the beginning of a 30,000 meter drilling program on the Timmins Porcupine West Property...

A Chinese company has made another bid to secure iron ore and other metals beyond its borders. On Tuesday Hanlong Mining said it will buy Perth-based Sundance Resources for US$1.57 billion. AFP reported that Hanlong will acquire Sundance through a scheme of arrangement, after lifting its offer to 57 cents cash per share from 50 cents back in July.

A statement put out by Ivanhoe Mines and partner Rio Tinto on Monday saying it has formally informed the Mongolian government it won't renegotiate the terms of the Oyu Tolgoi investment did not have the desired effect and the share was beaten down 6.6% on Monday. The counter’s losses began after rumours – now confirmed – surfaced that the Mongolian government is rethinking a 2009 deal that gave Ivanhoe Mines and Rio Tinto a 66% stake in Oyu Tolgoi and that it now wants half of the $6 billion gold and copper project.

An illegal work stoppage at La Arena Gold Oxide Mine has been resolved and mining operations have resumed, Rio Alto Mining (CVE:RIO) said on its website today.

Olympus Pacific Minerals TSX:OYM, ASX:OYM has formed a joint venture with Abra Mining & Industrial Corporation (AMIC) and other companies to develop the Capcapo gold project in the Philippines.

December gold added $35 or 2.2% to trade at $1,657.10 an ounce in noon dealings in New York on Monday regaining a sliver of the ground lost during September, the worst month for the precious metal since the start of the 2008 recession. September was a particularly volatile period for gold. Early on the metal hit an intraday record of $1,923.10 only to shed 17% over the course of the month. Today's dealings are also in sharp contrast to a week ago: in Asian trade on Monday September 26 bullion plunged $130 within a few hours, a move which many gold bugs are now saying had nothing to do with fundamentals but was intended to send a message.