So it goes… needless to say the last trend line support did not hold and gold lost another 20$. Not that bad – Gold rallied almost 200$ in two month and now gave back ~38% of the move, on the positive side the price of gold closed just above the Fibonacci 38.2% support. Silver constructing a box formation. Both still present excellent buying opportunity in my opinion and higher prices will soon follow. I annotated a spot gold and silver charts with Elliot wave count, click on the charts below to enlarge:
S.Africa gold output tumbles
Posted: Fri, 19 May 2006
[miningmx.com] -- SOUTH African first quarter gold output fell 10.9% year-on-year to 68 tonnes, and despite the local gold price soaring by a third in the period, there are five mines that are marginal, the Chamber of Mines said on Friday.
"South Africa’s gold production in the first quarter fell by 10.9% year-on-year to 68 tons on the back of the lower number of production shifts available to mines and in terms of the continued restructuring on certain operations," the Chamber said.
The fall was 9.5% quarter-on-quarter.
"Despite the rand gold price rising by 32% to an average of R109 219 per kilogram in the first quarter of 2006, five mines employing 53 708 employees and producing an annual 57.2 tonnes of gold were still marginal before capital expenditure," the Chamber said. - source
Good weekend to all !