Gold

President Hugo Chavez has signed a decree formalizing the nationalization of Venezuela's gold mining industry. The move Tuesday is aimed at giving the government total control over gold produced in the South American country.

Romanian Environment Minister Laszlo Borbely said Tuesday that a Canadian gold mine project would be given the green light only if it drops the proposed cyanide level in its tailings pond.

Shares in South Africa's Gold Fields, the world's fourth-largest gold producer, fell over four percent on Tuesday in its biggest one-day drop in 18 months as bullion's latest rally looked overdone.

Gold futures dropped for the first time in more than a week on Tuesday as global equity markets posted gains, buoyed by better-than-expected data from China. Gold for December delivery fell $19.80 or 1% to $1,873.50 an ounce at the start of trade in New York's Comex. On Monday the December contract rose $39.70, or 2.1%, Monday to settle at $1,891.90. Bullion is up 16% in August, heading for its best monthly performance since September 1999. Silver for December delivery in New York declined 1% to $42.94 an ounce after earlier touching $44.295, the highest price since May 3. It’s up 39% this year.

Medusa Mining Ltd advised the annual update of the JORC compliant ore reserve estimate for the Co-O Mine in the Philippines now stands at a probable reserve of 502,000 ozs contained in 1.5 million tonnes at 10.1 gpt Au.

Ivanhoe Mines (TSE:IVN,NYSE:IVN,NASDAW:IVN) announced an update to the production potential of its Oyu Tolgoi project.

Tawsho Mining Inc. (TAW.V) is now surging 32%, hits a new year high of about 37 cents earlier, after announcing results from its summer 2011 drill campaignon its Whisker Valley Gold Project.

Canadian company Silvercorp Metals Inc. said Monday it is buying a controlling share in two Chinese mining companies for about $10.4 million, including debt. Silvercorp will hold a 90 percent stake in Zhongxing Mining Co. Ltd. and Chuanxin Mining Co. Ltd. It will pay $4.3 million cash for the two companies and assume $6.1 million in debt. Silvercorp is making the purchase through its majority-controlled Henan Found Mining Co. unit.

Gold prices retreated from early record highs near $1,900 an ounce on Monday, as a rebound in stock markets from last week's lows gathered pace, denting interest in so-called safe haven assets like German bunds and bullion.