Video: West Red Lake Gold works to restart Madsen mine
The company is optimistic about the potential of its Red Lake assets in the storied gold district of northern Ontario.
So far this week there is an enormous amount of news that could significantly impact the precious metals markets especially Gold. Thankfully there seems to be a bit more stability in the European Union however, the mounting Geo-political tensions and economic data revealed this week has got Gold traders nervous in anticipation.
The tension between North and South Korea is threatening to become more than words as North Korea severed all ties with Seoul South Korea…. South Korea has formally accused North Korea of sinking on its Naval Ships in March and resulting in the loss of 46 lives ….The South Korean people are demanding United Nations Security Council to enact justice… North Korean leader Kim Jong-Il’s reported that “His troops are combat ready”…. This situation is a powder keg…….. Usually warring environments send investors to “Safer Haven” markets…primarily Gold….
The Middle-east is also experiencing Geo-political conflict as it was reported that Iran and Kurdish troops are clashing along the border…it had been reported that Iranian troops traveled 5 kilo meters inside the Iraqi border… Later…the the Iraqi Kurdish government admitted there was “activity” on the border but denied that Iranians traveled within the Iraqi border………
Also reports have confirmed the tensions between Israel and the Palestinians are also at a fever pitch…. Middle –east conflicts especially in Oil producing states also tend to help the price of gold…. It was also reported that Iran’s Central Bank will sell 45 Billion Euro’s from its reserves to buy U. S Dollars and gold ingots… according to state –owned Press TV…..
The IMF (International Monetary Fund) reported it had sold 14.4 tons of gold in the open market in April…… Leaving them with 152.8 tons for sale….. The physical demand for Gold is still very high… The U. S mint reported record sales last month citing huge demand for 1 ounce Gold coins…..
Initial Jobless Claims: The number of U.S Workers seeking jobless benefits fell to 453,000… This was a decrease of 10,000….(10,000 more Americans receiving a paycheck…
General Motors: TOTAL sales were up 16.6% versus one year ago……..
Thursday’s mid-session we learned that Kansas City FED Boss Thomas M Hoeing stated” the economic recovery Is stronger than expected” and the process of job creation Is taking hold” reported “inflation will rise during the recovery”… And added” this is the first step to normal policy which is raising Rates”….he hinted rates could be raised by the end of summer…. This news along with strong resistance over the $1225.00 – 1227.00 levels sent spiraling downward…..Anytime you mention rate hikes and the FOMC the “Gold “Bulls” tend to take profits…..
We are experiencing global turmoil and expect the volatility and extreme choppiness to continue…. Feel free to email with Gold trading questions.
Mike Daly / Gold Specialist
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*THERE IS EXTREME RISK TRADING FUTURES, OPTIONS, and FOREX*
