http://www.kitco.com/charts/livegold.html

cheers GF.

Iron Ore in demand..

China News Summary
A daily summary of the major financial stories in China

Monday, February 09, 2009

China steel prices at nine-week high, iron-ore demand congests ports
by Kim Hunter Gordon


China stocks rose, led by metal shares. The Shanghai Comprehensive Index advanced 1.99 percent to 2224.71.


Chinalco (601600,SH; 02600,SZ), China's largest aluminium producer, surged to the 10 percent trading cap after aluminum prices gained 3.3 percent to RMB 12,220 a ton today after the company appointed former executive Xiong Weiping as chairman, replacing Xiao Yaqing. Goldman Sachs raised Chinalco from "neutral" to "buy".


Jiangxi Copper Co.(600362,SH; 00358,HK), China's second-largest smelter of the metal and Yunnan Copper (000878,SZ), the No.3, both surged by the 10 percent trading limit.



China steel prices at nine-week high, iron-ore demand congests ports


Steel prices are at a nine-week high and according to China Security News, a steel industry association official has said there is space for a further rise.


The surge in demand has caused congestion at Chinese ports off-loading iron-ore that is contributing to rising ocean freight rates. The Baltic Dry Index, a gauge of commodity shipping costs, advanced a 14th day. The steel industry accounts for almost half of all dry-bulk cargo.
With a 7.5 percent tumble in hot-rolled steel prices traded in Shanghai last week, it is clear demand is mainly driven by rod products for the construction boom being initiated by China's economic stimulus plan.


Wuhan Iron & Steel Co., China's fifth largest steel producer, was among the companies who raised March price. Tangshan Iron & Steel Co. (000709,SZ), the pulicly traded unit of China's second-biggest steelmaker, surged 10 percent limit.

Angang Steel Co.(000898,SZ;00347,HK), China's second-biggest mill, rose 5.08 percent on Shenzhen trading.


China Cosco (601919,SH; 01919,HK), the world's largest operator of dry-bulk ships, rose the 10 percent limit. Rizhao Port Co.(600017,SH), China's largest iron ore port, rose 9.07 percent.


Wheat output uncertain as China fights drought


The worst drought in half a century in northern China has affected about 161 million mu (10.73 million hectares) of crops, according to state news on Friday.


Last Wednesday, China raised the drought emergency alert level from orange to red, the highest level. On the same day, the central government announced it would earmark RMB 300 million for local governments, in addition to 100 million previously allocated.


On Friday, the Ministry of Finance advanced RMB 86.7 billion (US$12.69 billion) from its reserves to drought-hit areas in relief funds.


The MOF ordered local governments to channel the funds to rural residents who are dependent on wheat production as soon as possible. In the worst drought-stricken provinces, the funds should arrive within one month.


It is still too early to estimate the influence of the drought on his year's crop but sales of irrigation equipment will rise for certain with of government support.


As of last Friday, 5.5 million irrigation machines have been deployed in drought relief. The Ministry of Agriculture said it would offer farmers subsidies on irrigation equipment purchase to aid the relief work.


Shares of pump manufacturers gained significantly. Zhejiang Leo Co.(002131,SZ), China's largest micro-pump producer, surged by its third consecutive 10 percent limit today.

http://www.proactiveinvestors.co.uk/companies/news/4343/china-steel-prices-at-nine-week-high-iron-ore-demand-congests-ports--4343.html

News in brief: Gold prices set for $1,000 mark

Chris Thomas
09.02.09 12:57


Gold set for $1,000

Expectation is growing that the price of gold is to leap towards the $1,000 mark and beyond, as the global financial instability leads investors to increasingly turn to the metal.

Goldman Sachs has recently adjusted its three-month forecast for gold, upping it from $700 to $1,000., following in the footsteps of rivals Morgan Stanley and UBS.

As well as uncertainty over the world's economy, expectations of a weaker dollar will act as a further boost to prices of gold which is seen as a relative safe haven in times of volatility.

Boyo ..... why did you buy both ORE and POG?

ORE to get short term speculative gain cyners.

shame on you!

Any thoughts on HOC, just gone in today ..long.

haven't followed that one for quite a while .... will contemplate .... certainly a better bet than say KAZ, but memory tells me HOC is a bit illiquid

Cheers cyners.

if you want "fun" try dabbling in nymex (or brent) futures

I like a bit of Nymex action too cynic, mainly on the long side recently, I don't know how many times it's bounced off 40 though looks like it will break that support tonight unless dow has surprise rally, still 10 days until March expires and yet at a $6 deficit to April. A good trade over the last 3 months has been short front month long following month 2 weeks pre-expiry though that may not be the case in the future, market neutral strategies take a lot of stress out of the whole trading carry-on though that's not to say pairs trades can't go very pear shaped, though if not over leveraged I can take the disparity.

Nope I stick firmly to stocks thanks chaps.

METALS STOCKS
Gold rises on speculation plans may boost inflation

By Moming Zhou, MarketWatch
Last update: 12:08 p.m. EST Feb. 10, 2009

http://www.marketwatch.com/news/story/gold-rises-above-900-inflation/story.aspx?guid=%7BF3C150DB%2DFE21%2D4F99%2D9B2B%2DEA0E05672D03%7D&dist=news

http://www.marketwatch.com/news/story/gold-rises-above-900-inflation/story.aspx?guid=%7BF3C150DB%2DFE21%2D4F99%2D9B2B%2DEA0E05672D03%7D&dist=news

http://www.moneyweek.com/investments/precious-metals-and-gems/the-best-asset-class-for-the-next-few-years-gold-miners-14616.aspx

By Dominic Frisby Feb 11, 2009


Put your faith in gold miners

METALS STOCKS

Gold rises to near $930 as safety buying continues

By Moming Zhou, MarketWatch
Last update: 9:43 a.m. EST Feb. 11, 2009

Gold futures rose Wednesday for a second session, climbing near $930 an ounce to the highest level in nearly two weeks as investors continued to buy the metal amid doubts on new economic rescue plans unveiled in the U.S.
Gold for February delivery was last up $11.30, or 1.2%, at $925 an ounce on the Comex division of the New York Mercantile Exchange. It rose to $929 earlier, the loftiest intraday level since Jan. 30. Trading more actively, the April contract rose 1.3% to $926 an ounce.

Gold gained more than 2% in the previous session after the Treasury Secretary Timothy Geithner introduced a new plan to rescue the ailing banking sector. The Senate also passed an $838 billion stimulus package Tuesday by a 61-37 vote.

Markets, however, cast doubts on the plans. Stocks and crude oil prices tumbled, while safe haven buying pushed up gold and Treasury securities, as well as the U.S. dollar.
It's the "flight to safety, pure and simple," said Jon Nadler, senior analyst at Kitco Bullion Dealers.
Crude oil rebounded Wednesday, recouping part of Tuesday's losses, while U.S. stock futures were flat as unease continued over the lack of details surrounding the Treasury's plan.

If gold breaks the $930 mark, it could rise to as high as $950 an ounce in the short term, said Ashraf Laidi, chief market strategist at London-based CMC Markets. Most analysts are projecting gold to rise above $1,000 this year, as safe-haven buying and demand for gold as a hedge against inflation are expected to continue.

Holdings of SPDR Gold Trust, the largest exchange-traded fund backed by gold, hit a new record high of 894.72 tons as of Tuesday, up 1.5% from a day earlier, according to the latest data from the fund. The total was higher than that reported a month earlier by a margin of nearly 110 tons, or 14%.
Other metals were mixed Tuesday. March copper slid 2.9% to $1.53 a pound, while March silver rose 1% to $13.255 an ounce. March palladium gained 0.5% to $213.15 an ounce, and the April contract for sister metal platinum added 2% to $1,056 an ounce.
Moming Zhou is a MarketWatch reporter based in New York.

Positive

http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20090211\ACQRTT200902111557RTTRADERUSEQUITY_1230.htm&selected=9999&selecteddisplaysymbol=9999&StoryTargetFrame=_top&mkt=WORLD&chk=unchecked〈=&link=&headlinereturnpage=http://www.international.nasd

Excelent article here for a bullish read on gold...

The prospects for $1,200-1,300 gold by the end of Q3 remain underpinned by a set of cogent fundamental variables involving currencies, interest rates and the global economy. Meanwhile, even as the divergence between gold and oil begins to fade, any oil-friendly dynamics are seen as a positive for gold's luster

http://seekingalpha.com/article/120130-oil-gold-ratio-surges

believe it when it happens! ..... oil was guaranteed to hit $200 also.
anyway, $1000 will almost certainly pose a pretty formidable obstacle in the meantime

Gold sets record highs as global stocks slide
Thu Feb 12, 2009 2:10pm EST

http://www.reuters.com/article/hotStocksNews/idUSTRE51B0XG20090212

Dollar Rises, Gold Stays Up

by: Duru February 13, 2009 | about stocks: CLF / FCX / GLD / NUE / SLV / X

http://seekingalpha.com/article/120431-dollar-rises-gold-stays-up

Pro TAer Zak Mirs latest comment...

Zak Mir



Reged: 28/06/07
Posts: 640
Re: Peter Hambro Mining - POG.L
#439584 - 13/02/09 08:54 AM Edit Reply Quote



The 200 day moving average at 525p should be a good support level for an October resistance line target as high as 630p initially.

Decided to take my profit on Friday. They don't come along very often these days and I'd let slip a couple of others.

Seems like I made the right decision (for once!)