Market turbulence affects prices and projects
by Gill Montia

Metal prices have been adversely affected by recent stock market turbulence, with the prices of most metals, including gold and silver, down because of the crisis in the US sub-prime mortgage lending sector.
The knock-on effects of the turbulence in the debt markets have yet to be assessed and while there is as yet little evidence of serious impact on the economies of China and India, some leading economies may be pushed into lower growth or even into recession.
The situation is likely to continue to impact on global demand for metals and minerals, unless there is a rapid and prolonged recovery in markets and confidence.
Banks are nervous of what can be seen as risky loans, such as those made to the mining sector, and this could undermine plans to increase metals production.
Whilst such an outcome could cause prices to rise over time, the metals markets have first to deal with the effect of cash-short institutions unloading their gold and silver assets.
In addition, despite the crisis emanating from the US, the dollar has been recording gains against other major currencies, and when the dollar rises, gold and silver prices tend to fall.
However, economists expect the dollar to remains weak and gold tends to thrive on market uncertainty.
What is in little doubt is that new mining projects and expansions will become harder to finance as banks look to the safety of credit requests.
Add to Bookmarks:
Related posts to: Market turbulence affects prices and projects
Significant spike in 2008 copper price ...
Gold to benefit from stock market uncertainty ...
Gold stock and bullion prices disappoint ...
US jobs report affects metals markets ...
Chile plans global leadership in copper mine development ...
Latest Metals News:
Gold gains on investor search for safety
Copper prices gain on demand hopes
EMED Mining acquires 100% of Andalucian copper mine
Gold gains on safe-haven status
Gold prices lower as equities recover
Copper drops 17 cents in New York
Bailout uncertainty slows copper trade
Nickel prices drop on higher inventories
Copper prices fall in London, New York
Copper declines on profit-taking, bailout concernsPrevious: « Copper drops 23 cents per pound in New York
Next: Metals prices down on week »
Visited 841 times, 1 so far today