Gold

Mexican mining production rose 22% in April from the year-ago month, led by a big jump in output of copper, the National Statistics Institute, or Inegi, said Thursday. Copper production rose 77% to 32,324 metric tons.

Silver and gold prices fell further at the bullion market on moderate selling by stockists and investors amidst continuing bearishness in the global markets. Silver ready (.999 fineness) declined by Rs 125 per kg to end at Rs 51,585 from Friday's level of Rs 51,710.

The gold and silver markets are still in high risk territory vulnerable both ways. At the moment the direction of gold and silver, in the euro and the dollar is down.

Gold vending machines are to be placed in every major city in Britain after the country's first Gold to Go ATM was switched on in a West London shopping centre on Friday. The company behind the machines that vend a 1g bar the size of a cellphone sim card aimed at ordinary shoppers plans to install 50 across Britain over the next few years. "It has not even started. The buying power of the smart money has moved into gold, but we didn't see the normal consumer buying gold. We have yet to hit the record price from the 1980s," said Thomas Geissler, CEO of Ex Oriente Lux, which are already turning over $52m/year from machines in the Middle East and Germany.

MarketWatch reports gold futures lost ground in electronic trading Friday as the dollar strengthened against major rivals. Gold for August delivery declined $16.70, or 1.1%, to $1,486.10 an ounce on the Comex division of the New York Mercantile Exchange. A stronger greenback tends to discourage investment in dollar-priced commodities such as gold. The precious metal was also pushed lower as some uncertainty about the euro zone’s debt problems lifted. Despite the recent weakness, gold prices remain over 5% higher this year. Silver followed gold lower Friday, dropping close to 3%.

Timmins Gold Corp. reported an annual net profit of $11.5m for 2011, the first year of commercial operations of its San Francisco gold project in Mexico. The nine cent a share profit on revenues of $84.3m reported Thursday compared with a net loss of $8.6m last year when the company's income was zero. The company expects to average annual gold production of approximately 100,000 ounces at base case life of mine cash costs of US$489 per ounce. Timmins moved to the Toronto main board in March where it is worth some $137m.

Bloomberg reports South Africa risks cutting the mine output that contributes 8.8% of the economy as calls from within the governing political party for a state takeover of the industry deter investors, Impala Platinum Holdings said. Mine operators in South Africa are compelled by law to sell 26% of their assets to black investors by 2014 and boost numbers of black managers to help make up for discrimination during apartheid. Some companies had missed targets for 2009, the mines minister said at the time, adding that the industry had “not lived up to the spirit and intent” of the law.

An announced order for milling equipment for First Quantum's big Sentinel copper project in Zambia suggests a decision to go ahead with the project has already been taken. FLSmidth has received a contract worth approximately USD 50m from Kalumbila

The Osama bin Laden household in Pakistan's Abbottabad town used to buy and sell gold jewellery, perhaps as a way to raise money, it has emerged. Nearly two months after bin Laden was killed by US Navy SEALs who raided his Abbottabad hideout in the early morning hours of May 2. Photo is from the U.S. Government.