Polymetal is on track to pour 1.2 million ounces this year, notwithstanding the risk of a 5-percent shortfall due to delays at one of its facilities, the company said.
Gold rises on continued hopes of money printing
The gold price added over $18, or 1 percent, Wednesday on poor economic news from the United States; that points to continued stimulus on the part of the US Federal Reserve. The yellow metal was changing hands for $1,681 an ounce after the release of economic data showing that the US economy shrunk 0.1 percent during the fourth quarter of 2012; the Fed's statement that it will continue buying Treasury bills and bonds worth $85 billion a month due to "downside risk to the economic outlook" also contributed to the uptick.
By Thursday, however, Wednesday's gains were erased, with the precious metal down over $20, to $1,660 midday, as gold traders sold and took profits. Spot gold closed at $1,664 on the last day of the month, while gold futures (April delivery) last traded down $17.80 at $1,663.90. On a monthly basis, gold in January booked losses for the fourth month in a row.
Gold, considered a hedge against inflation and currency depreciation, has doubled in value since the US Federal Reserve, under the direction of Chairman Ben Bernanke, started its quantitative easing programs in 2008. These programs are essentially aimed at increasing the supply of money in order to drive down interest rates and stimulate borrowing and consumer spending.
Indian gold traders do brisk trade as wedding season approaches
Indian bullion dealers appear to have stepped up their gold trading last month in anticipation of the hike in the gold import duty announced on January 21.
Mineweb reported that bullion traders "cornered most of the precious metal in the first three weeks of the month," clearly hedging their bets on what will happen after the customs duty on gold imports rises from 4 percent to 6 percent.