The FHFA index, which is calculated using purchase prices of homes financed with mortgages that have been sold to or guaranteed by Fannie Mae (FNM.P) (FNM.N) or Freddie Mac (FRE.P) (FRE.N), fell by a seasonally adjusted 1.5 percent for the 12 months ending in April.
Gains month-over-month, however, accelerated.
The gauge rose 0.8 percent in April after a downwardly revised 0.1 percent March gain. The increase in March was previously reported at 0.3 percent.
The U.S. index is 12.8 percent below its April 2007 peak, the regulator said.
"Federal tax credits for first-time home buyers and existing homeowners contributed to the strength in house prices in April," FHFA said in a statement.
"The tax credits, which required that purchase contracts be signed by the end of April, increased sales volumes dramatically during the month and, in some cases, likely increased bidding prices,"
Tuesday, June 22, 2010
Sunday, June 6, 2010
Gold returns to $1,220 on safe haven buying as Dow Jones, S&P 500 and FTSE 100 slip on US jobs data
Gold prices got enough support this week to stay above US$1,200 and recapture the US$1,220/oz mark late in the week after markets in Europe and the US plunged on disappointing US jobs data.
Gold held steady at US$1,220/oz at the start of the week on stronger safe haven demand, boosted by the European Central Bank’s (ECB) warning that Europe’s banks could get hit by up to €195 billion in bad loan write-offs this year and suffer yet more losses in 2011. The news sent euro to four year lows, while boosting the US dollar and contributing to Tuesday's fall in equity markets.
An update on Chinese manufacturing further bolstered gold prices after it was reported that the country’s PMI (purchasing manager’s index) fell from 55.2 to 52.7, indicating lower levels of manufacturing activity.
Proactiveinvestors recommends
Orosur Mining looks to Chile and Arenal DeepsCentral China Goldfields inks contract mining agreement for Dong Mao Huo Gold Mine Oxus Gold announces revised plan to increase gold production at AmantaytauPrices were supported at this level later in the week as investors continued pouring money into precious metals and other safe haven assets amid a lack of other cues. Gold slipped below US$1,220/oz on Thursday and later slid to US$1,202/oz after safe haven demand was undermined by a rally in stock markets on positive US data that was released middle through the week, showing a 2.7% jump in construction spending in April and a 10,000 decline in initial jobless claims.
Safe haven buying has been the main driver behind the rising gold prices last month, which saw the yellow metal hit all time highs in US dollar terms at nearly US$1,250/oz. Equity and currency markets were volatile due to the renewed concerns over the European debt crisis after a small savings bank was bailed out in Spain, political tensions on the Korean peninsula, where North and South Korea seemed to be on the verge of an all-out war, and the massive oil spill in the Gulf of Mexico, which has wiped out more than a third of the value of one of the FTSE 100’s heavyweights oil and gas supermajor BP (LSE: BP).
Gold seemed to get back to its traditional trend of moving along with the euro and inversely to the US dollar, to which it is seen as an alternative investment. However, gold rallied as jitters in the markets renewed after the US Labor Department said that non-farm payrolls added 431,000 last week, mostly reflecting the 411,000 temporary workers hired by the government to conduct a census, while most surveys projected an increase of over 500,000.
Key stock markets indexes in the US and Europe plummeted with the Dow Jones and S&P 500 indexes as well as the technology heavy NASDAQ composite shedding more than 3% and the UK’s FTSE 100 losing nearly 2%.
Gold got back to US$1,220/oz, while silver and platinum moved in the opposite direction, slipping to US$17.41/oz and US$1,511/oz respectively.
Gold prices got enough support this week to stay above US$1,200 and recapture the US$1,220/oz mark late in the week after markets in Europe and the US plunged on disappointing US jobs data.
Gold held steady at US$1,220/oz at the start of the week on stronger safe haven demand, boosted by the European Central Bank’s (ECB) warning that Europe’s banks could get hit by up to €195 billion in bad loan write-offs this year and suffer yet more losses in 2011. The news sent euro to four year lows, while boosting the US dollar and contributing to Tuesday's fall in equity markets.
An update on Chinese manufacturing further bolstered gold prices after it was reported that the country’s PMI (purchasing manager’s index) fell from 55.2 to 52.7, indicating lower levels of manufacturing activity.
Prices were supported at this level later in the week as investors continued pouring money into precious metals and other safe haven assets amid a lack of other cues. Gold slipped below US$1,220/oz on Thursday and later slid to US$1,202/oz after safe haven demand was undermined by a rally in stock markets on positive US data that was released middle through the week, showing a 2.7% jump in construction spending in April and a 10,000 decline in initial jobless claims.
Safe haven buying has been the main driver behind the rising gold prices last month, which saw the yellow metal hit all time highs in US dollar terms at nearly US$1,250/oz. Equity and currency markets were volatile due to the renewed concerns over the European debt crisis after a small savings bank was bailed out in Spain, political tensions on the Korean peninsula, where North and South Korea seemed to be on the verge of an all-out war, and the massive oil spill in the Gulf of Mexico, which has wiped out more than a third of the value of one of the FTSE 100’s heavyweights oil and gas supermajor BP (LSE: BP).
Gold seemed to get back to its traditional trend of moving along with the euro and inversely to the US dollar, to which it is seen as an alternative investment. However, gold rallied as jitters in the markets renewed after the US Labor Department said that non-farm payrolls added 431,000 last week, mostly reflecting the 411,000 temporary workers hired by the government to conduct a census, while most surveys projected an increase of over 500,000.
Key stock markets indexes in the US and Europe plummeted with the Dow Jones and S&P 500 indexes as well as the technology heavy NASDAQ composite shedding more than 3% and the UK’s FTSE 100 losing nearly 2%.
Gold got back to US$1,220/oz, while silver and platinum moved in the opposite direction, slipping to US$17.41/oz and US$1,511/oz respectively.
Most major mining stocks were in decline this week. Randgold Resources (LSE: RRS) declined 1.5% from 5,990 pence to 5,900 pence, silver miner Fresnillo (LSE: FRES) was roughly unchanged at 907 pence and platinum miner Lonmin (LSE: LMI) slipped 5.6% from 1,684 pence to 1,594 pence.
In the FTSE 250, gold miner Petropavlovsk (LSE: POG) climbed 1.8% from 1,202 pence to 1,224 pence, while Aquarius Platinum (LSE: AQP) declined 4.8% from 376 pence to 358 pence and silver producer Hochschild Mining (LSE: HOC) moved down 2.4% from 290 pence to 283 pence.
Large and Mid Cap News
There will be a 5,000 metre diamond drilling programme to start the joint venture between Breakaway Resources Ltd (ASX:BRW) and BHP Billiton (ASX:BHP, LON:BLT) and that will involve a first hole going to about 1,000m to start a probe for what the junior company believes is a "potential world-class silver-lead-zinc deposit.
Swiss headquartered, London listed mining giant Xstrata (LON:XTA) has suspended expenditures on two projects in Australia in response to a proposed resources super profits tax by the Australian Government.
Small Cap News
Prosperity Minerals Holdings (LON:PMHL) has announced the next-step in its development as it continues to diversify its business model after it sold most of its Chinese cement businesses earlier this year for over £385 million. The company is now set to add real estate operations to its new business structure, with the signing of conditional agreements to acquire property interests in the People’s Republic of China (PRC).
Rambler Metals and Mining’s (TSX-V: RAB, AIM: RMM) Ming Copper Gold Mine has received final environmental approval and project release, from the Government of Newfoundland and Labrador. The approval allows Rambler to start project development, and allow production to begin in 2011.
Gold explorer and developer Chaarat Gold (LON:CGH) has secured a renewal of the exploration license agreement over its 4 Moz (million ounce) Chaarat gold project in Kyrgyzstan until 31 December 2012.
African Aura Mining (LON:AAAM, TSX:AAAM) released its financial results for the quarter today, reporting an income of US$0.5 million compared to a loss in 2009, and reaffirmed its operational targets for 2010, which will include a drilling programme at the Knout iron ore project in Cameroon and a resource definition drilling programme at the New Liberty gold deposit in Liberia.
Central China Goldfields (LON:GGG), alongside its JV partner Auzex Resources told investors that the independent structural study of the Bullabulling Gold Project has now been completed. The partners will now start the next phase of diamond drilling imminently.
South American based explorer Mariana Resources (LON:MARL) has reported further wide intersections from 19 drill holes at the Calandria Sur prospect, saying the bulk tonnage potential, bonanza gold grades from Calandria Norte and additional targets at El Nido dome complex enhanced the scope to expand the Las Calandrias project.
The merger between European Nickel (LON:ENK) and Rusina Mining (LON:RMLA, ASX: RML) has taken another step forward, as Rusina shareholders approved the scheme of arrangement by an overwhelming majority – with 99.56% voting in favour of the deal.
ZincOx Resources (LON:ZOX) told investors of a share-purchase associated with the company’s Executive Chairman Andrew Woollett. Members of Woollett's family have purchased a total of 65,433 shares at 41p each.
Tantalum concentrate supplier Noventa (LON:NVTA) reported good news from its recently restarted Marropino mine in Mozambique, saying that the concentration of tantalum in the mine’s tailings ore has proven to be significantly higher than expected, while the choice of liberation process and technique had proven to be successful at an industrial scale.
Earlier this week, Prosperity Minerals Holdings (AIM:PMHL) announced a new strategic-shift as it unveiled plans to enter the Chinese real estate market. This morning, London-based stockbroker Daniel Stewart & Co issued a note to investors, the broker said it is encouraged by the company’s intentions and strategy to date in real estate.
Gold, nickel and iron ore exploration junior Landore Resources (LON:LND) called 2009 a year of significant progress in the development of its multi-commodity Junior Lake prospect in Canada, reporting lower operating expenses that were largely covered by capital raisings and outlined its exploration and development activities for the current year.
In its final results, Horizonte Minerals (LON:HZM) told investors that it is well placed to benefit from a renewed optimism in the resource sector in 2010, after the company’s strong progress in 2009. In particular, the company noted the strong growth in nickel prices, which have climbed from below US$6/lb up through the US$10/lb, consequently Horizonte Chairman David J. Hall said that the company will continue to fast-track the Lontra nickel laterite project.
In its FY09 final results, Kalahari Minerals (LON:KAH) said it has created a solid platform for future growth in the year, through a series of corporate initiatives, which will maximise the full potential of its significant uranium, gold, copper and other base metal interests in Namibia.
Cluff Gold (LON:CLF, TSX:CLG) has upgraded the NI43-101 Mineral Resource estimate for the Baomahun Project, in Sierra Leone, increasing total Measured and Indicated Resources by 27% to 1.4 million ounces (Moz) of gold – with over 15 million tonnes of mineralisation grading 2.92g/t.
Gold held steady at US$1,220/oz at the start of the week on stronger safe haven demand, boosted by the European Central Bank’s (ECB) warning that Europe’s banks could get hit by up to €195 billion in bad loan write-offs this year and suffer yet more losses in 2011. The news sent euro to four year lows, while boosting the US dollar and contributing to Tuesday's fall in equity markets.
An update on Chinese manufacturing further bolstered gold prices after it was reported that the country’s PMI (purchasing manager’s index) fell from 55.2 to 52.7, indicating lower levels of manufacturing activity.
Proactiveinvestors recommends
Orosur Mining looks to Chile and Arenal DeepsCentral China Goldfields inks contract mining agreement for Dong Mao Huo Gold Mine Oxus Gold announces revised plan to increase gold production at AmantaytauPrices were supported at this level later in the week as investors continued pouring money into precious metals and other safe haven assets amid a lack of other cues. Gold slipped below US$1,220/oz on Thursday and later slid to US$1,202/oz after safe haven demand was undermined by a rally in stock markets on positive US data that was released middle through the week, showing a 2.7% jump in construction spending in April and a 10,000 decline in initial jobless claims.
Safe haven buying has been the main driver behind the rising gold prices last month, which saw the yellow metal hit all time highs in US dollar terms at nearly US$1,250/oz. Equity and currency markets were volatile due to the renewed concerns over the European debt crisis after a small savings bank was bailed out in Spain, political tensions on the Korean peninsula, where North and South Korea seemed to be on the verge of an all-out war, and the massive oil spill in the Gulf of Mexico, which has wiped out more than a third of the value of one of the FTSE 100’s heavyweights oil and gas supermajor BP (LSE: BP).
Gold seemed to get back to its traditional trend of moving along with the euro and inversely to the US dollar, to which it is seen as an alternative investment. However, gold rallied as jitters in the markets renewed after the US Labor Department said that non-farm payrolls added 431,000 last week, mostly reflecting the 411,000 temporary workers hired by the government to conduct a census, while most surveys projected an increase of over 500,000.
Key stock markets indexes in the US and Europe plummeted with the Dow Jones and S&P 500 indexes as well as the technology heavy NASDAQ composite shedding more than 3% and the UK’s FTSE 100 losing nearly 2%.
Gold got back to US$1,220/oz, while silver and platinum moved in the opposite direction, slipping to US$17.41/oz and US$1,511/oz respectively.
Gold prices got enough support this week to stay above US$1,200 and recapture the US$1,220/oz mark late in the week after markets in Europe and the US plunged on disappointing US jobs data.
Gold held steady at US$1,220/oz at the start of the week on stronger safe haven demand, boosted by the European Central Bank’s (ECB) warning that Europe’s banks could get hit by up to €195 billion in bad loan write-offs this year and suffer yet more losses in 2011. The news sent euro to four year lows, while boosting the US dollar and contributing to Tuesday's fall in equity markets.
An update on Chinese manufacturing further bolstered gold prices after it was reported that the country’s PMI (purchasing manager’s index) fell from 55.2 to 52.7, indicating lower levels of manufacturing activity.
Prices were supported at this level later in the week as investors continued pouring money into precious metals and other safe haven assets amid a lack of other cues. Gold slipped below US$1,220/oz on Thursday and later slid to US$1,202/oz after safe haven demand was undermined by a rally in stock markets on positive US data that was released middle through the week, showing a 2.7% jump in construction spending in April and a 10,000 decline in initial jobless claims.
Safe haven buying has been the main driver behind the rising gold prices last month, which saw the yellow metal hit all time highs in US dollar terms at nearly US$1,250/oz. Equity and currency markets were volatile due to the renewed concerns over the European debt crisis after a small savings bank was bailed out in Spain, political tensions on the Korean peninsula, where North and South Korea seemed to be on the verge of an all-out war, and the massive oil spill in the Gulf of Mexico, which has wiped out more than a third of the value of one of the FTSE 100’s heavyweights oil and gas supermajor BP (LSE: BP).
Gold seemed to get back to its traditional trend of moving along with the euro and inversely to the US dollar, to which it is seen as an alternative investment. However, gold rallied as jitters in the markets renewed after the US Labor Department said that non-farm payrolls added 431,000 last week, mostly reflecting the 411,000 temporary workers hired by the government to conduct a census, while most surveys projected an increase of over 500,000.
Key stock markets indexes in the US and Europe plummeted with the Dow Jones and S&P 500 indexes as well as the technology heavy NASDAQ composite shedding more than 3% and the UK’s FTSE 100 losing nearly 2%.
Gold got back to US$1,220/oz, while silver and platinum moved in the opposite direction, slipping to US$17.41/oz and US$1,511/oz respectively.
Most major mining stocks were in decline this week. Randgold Resources (LSE: RRS) declined 1.5% from 5,990 pence to 5,900 pence, silver miner Fresnillo (LSE: FRES) was roughly unchanged at 907 pence and platinum miner Lonmin (LSE: LMI) slipped 5.6% from 1,684 pence to 1,594 pence.
In the FTSE 250, gold miner Petropavlovsk (LSE: POG) climbed 1.8% from 1,202 pence to 1,224 pence, while Aquarius Platinum (LSE: AQP) declined 4.8% from 376 pence to 358 pence and silver producer Hochschild Mining (LSE: HOC) moved down 2.4% from 290 pence to 283 pence.
Large and Mid Cap News
There will be a 5,000 metre diamond drilling programme to start the joint venture between Breakaway Resources Ltd (ASX:BRW) and BHP Billiton (ASX:BHP, LON:BLT) and that will involve a first hole going to about 1,000m to start a probe for what the junior company believes is a "potential world-class silver-lead-zinc deposit.
Swiss headquartered, London listed mining giant Xstrata (LON:XTA) has suspended expenditures on two projects in Australia in response to a proposed resources super profits tax by the Australian Government.
Small Cap News
Prosperity Minerals Holdings (LON:PMHL) has announced the next-step in its development as it continues to diversify its business model after it sold most of its Chinese cement businesses earlier this year for over £385 million. The company is now set to add real estate operations to its new business structure, with the signing of conditional agreements to acquire property interests in the People’s Republic of China (PRC).
Rambler Metals and Mining’s (TSX-V: RAB, AIM: RMM) Ming Copper Gold Mine has received final environmental approval and project release, from the Government of Newfoundland and Labrador. The approval allows Rambler to start project development, and allow production to begin in 2011.
Gold explorer and developer Chaarat Gold (LON:CGH) has secured a renewal of the exploration license agreement over its 4 Moz (million ounce) Chaarat gold project in Kyrgyzstan until 31 December 2012.
African Aura Mining (LON:AAAM, TSX:AAAM) released its financial results for the quarter today, reporting an income of US$0.5 million compared to a loss in 2009, and reaffirmed its operational targets for 2010, which will include a drilling programme at the Knout iron ore project in Cameroon and a resource definition drilling programme at the New Liberty gold deposit in Liberia.
Central China Goldfields (LON:GGG), alongside its JV partner Auzex Resources told investors that the independent structural study of the Bullabulling Gold Project has now been completed. The partners will now start the next phase of diamond drilling imminently.
South American based explorer Mariana Resources (LON:MARL) has reported further wide intersections from 19 drill holes at the Calandria Sur prospect, saying the bulk tonnage potential, bonanza gold grades from Calandria Norte and additional targets at El Nido dome complex enhanced the scope to expand the Las Calandrias project.
The merger between European Nickel (LON:ENK) and Rusina Mining (LON:RMLA, ASX: RML) has taken another step forward, as Rusina shareholders approved the scheme of arrangement by an overwhelming majority – with 99.56% voting in favour of the deal.
ZincOx Resources (LON:ZOX) told investors of a share-purchase associated with the company’s Executive Chairman Andrew Woollett. Members of Woollett's family have purchased a total of 65,433 shares at 41p each.
Tantalum concentrate supplier Noventa (LON:NVTA) reported good news from its recently restarted Marropino mine in Mozambique, saying that the concentration of tantalum in the mine’s tailings ore has proven to be significantly higher than expected, while the choice of liberation process and technique had proven to be successful at an industrial scale.
Earlier this week, Prosperity Minerals Holdings (AIM:PMHL) announced a new strategic-shift as it unveiled plans to enter the Chinese real estate market. This morning, London-based stockbroker Daniel Stewart & Co issued a note to investors, the broker said it is encouraged by the company’s intentions and strategy to date in real estate.
Gold, nickel and iron ore exploration junior Landore Resources (LON:LND) called 2009 a year of significant progress in the development of its multi-commodity Junior Lake prospect in Canada, reporting lower operating expenses that were largely covered by capital raisings and outlined its exploration and development activities for the current year.
In its final results, Horizonte Minerals (LON:HZM) told investors that it is well placed to benefit from a renewed optimism in the resource sector in 2010, after the company’s strong progress in 2009. In particular, the company noted the strong growth in nickel prices, which have climbed from below US$6/lb up through the US$10/lb, consequently Horizonte Chairman David J. Hall said that the company will continue to fast-track the Lontra nickel laterite project.
In its FY09 final results, Kalahari Minerals (LON:KAH) said it has created a solid platform for future growth in the year, through a series of corporate initiatives, which will maximise the full potential of its significant uranium, gold, copper and other base metal interests in Namibia.
Cluff Gold (LON:CLF, TSX:CLG) has upgraded the NI43-101 Mineral Resource estimate for the Baomahun Project, in Sierra Leone, increasing total Measured and Indicated Resources by 27% to 1.4 million ounces (Moz) of gold – with over 15 million tonnes of mineralisation grading 2.92g/t.
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