Gold Prices Head South As Dollar Rebounds

Gold prices along with the SPDR Gold Trust (ETF) (NYSEARCA:GLD) lost ground during the European morning hours as the started started gaining against major world currencies. However, gold has remained at a level near its one-year high with gold stocks rising again today.

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Gold prices go south

Gold prices for April delivery fell 0.95% to $1,252.80 during the early U.S. trading hours. The April contract for gold ended on Thursday after registering a surge of 2.86% at $1,265. Futures are likely to find support at $1,234.50 and resistance at $1,280.70.

During the first two months of 2016, gold prices went up by 16% following a weak 2015. The appetite for safe haven assets increased as equity markets across the world witnessed high volatility partially due to the slowdown in China.

In other metals, Silver futures for May delivery fell 0.21% to $16, mimicking the direction of gold prices.

Newmonts Copper Operations

According to Bloomberg, an Indonesian consortium has been formed to raise $1 billion with the aim to buy the copper operations of Newmont Mining Corp (NYSE:NEM) in Indonesia. The investors in the group are holding active discussions with banks on raising $750 million through senior loans and $250 million through mezzanine debt. Malayan Banking Bhd. and Societe Generale SA are the two banks that are actively involved in the talks.

Meanwhile, IAMGOLD Corp (USA) (NYSE:IAG) has updated its shareholders that it has sold its stake, worth 21,875,000 common shares, in Galane Gold Ltd. After the sale, IAMGOLD holds no interest in Galane. The sale of its stake comes after Galane indirectly bought a share in Mupane gold mine in Botswana, Africa from IAMGOLD, in line with its announcement dated August 31. 2011.

Apart from this, Lake Shore Gold Corp (NYSEMKT:LSG) has published a note to its investors stating that the ISS Proxy Advisory Services and Glass, Lewis & Co., have suggested a business combination with Tahoe Resources.

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