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Gold Up as Euro Rises, Solomon Islands Bullish on Nickel Mining Future

25 March 2010 (Midnight Trader)

Gold is on the rise in morning trade Thursday, as the dollar weakened against the euro as investors monitored the ongoing European Union summit meeting.

There is growing speculation that Greece will need to get help from the International Monetary Fund in order to secure financial aid from fellow EU member countries, which may have considerable negative consequences for the euro and the euro zone in general. For not, though, a stronger European currency is making it cheaper for investors to shore up dollar-denominated gold.

At 0815 ET, gold is up 0.5% at $1,093.70 an ounce, while silver is up 1.1% at $1,681.50 an ounce, while copper is up 0.4% at $335.80 a pound.

Meanwhile, China is expected to fuel global demand for zinc, according to Fortis Bank Nederland. Zinc price rose 125% in 2009 on the back of strong Chinese demand, while demand outside of China has been "lethargic," the Dutch banking group said.

As for the nickel market, the Solomon Islands is expected to put out an international tender for its nickel mine in Isabel Province. The government said it is looking to expand its mining industry as a major revenue earner. Japan's Sumitomo Metal Mining Co. (5713) has been exploring deposits since 2006 in the province.

On the corporate front, the Shanghai judicial system concluded its trial of four Rio Tinto Ltd (RIO) Thursday, who have been accused of accepting bribes totaling over $12 million and stealing state commercial secrets. A verdict is expected march 29. All four, including an Australian national, have pleaded guilty.

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  • September 26th - Europe's central banks seen queuing up to sell gold (Reuters)
  • THE YELLOW BOOK - Virtual Metals Research & Consulting and Fortis Bank in a new analysis of the global fundamentals and outlook for the international gold market.
  • Virtual Metals Research & Consulting announces today the launch of an innovative mechanism for the funding and development of sustainability projects in the minerals extraction industry. The new entity – called MineLife - is a collaboration between Virtual Metals, Barrick Gold Corporation, Gold Fields Limited, and Harmony Gold Mining Limited. It is dedicated to alleviating poverty and building long-term socio-economic development in Africa and, ultimately, in other developing markets.
  • Q2 05 The Hedge Book - Global hedging falls 2.5 Moz to 53.1 Moz
  • The latest edition of the Hedge Book, sponsored by Mitsui, shows dehedging quickened to 2.5 Moz in Q2 05, up from just 1.3 Moz in Q1 05. For the press release and full report click here

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