Dallas, Texas 09/12/2013 (Financialstrend) – Gold futures plummeted by over 20%/ounce in the wake of growing concerns that the Syrian military strike might just be averted. In addition to previous losses, there is now a $24.50 or 1.8% or $1,362.20/ounce decline in gold that is slated for a December delivery. There has been a decrease after it settled above the $1,420 range on 27 August. This was its peak price since the middle of May.
UBS analyst’s said in a note last Friday that they do not suggest any guidance for the precious metal prior to the FOMC meeting. The United States generated 169,000 new jobs in the month of August and the unemployment rate decreased to 7.3% which was a 4 ½ year low and fewer people were looking for jobs. Analysts avers that the risks are still tilted towards a drop in gold prices specially taking into account the number of shorts than have been covered in the last two months. There is room for new selling once the QE tapering gets confirmed. If the 17 September FOMC meeting confirms tapering, gold may just drop to $1,250.
In Wednesday’s trading, Allied Nevada Gold Corp. (NYSEMKT:ANV) rose by 0.04%. The shares opened at a price of $4.98, rose to an intraday high of $5.12 and closed at $4.99. Approximately 4.33 million shares were traded on Wednesday and the average volume of ANV shares traded over a 30 day period was 6.36 million. The company has a market capitalization of $518.66 million.
Allied Nevada Gold Corp. (NYSEMKT:ANV) is a company that produces gold and silver. It focuses on mining, developing and exploring properties in Nevada State. Hycroft Mine, the company’s operating mine is an open pit silver and gold heap-leach operation that is situated 54 miles to the west of Winnemucca in Nevada.