Wednesday London Gold Report

"Scope for Gold at $2400" as US Monetary Policy "Designed to Weaken the Dollar" 

from Ben Traynor, from Ben Traynor

THE SPOT gold price climbed back above $1715 an ounce Wednesday morning, around ten Dollars up from last week's close, as stocks, commodities and the Euro also edged higher and US Treasuries dipped, ahead of today's Federal Reserve policy announcement.

Silver meantime edged above $33.20 an ounce this morning, a slight gain on where it started the week.

Several analysts have predicted the Fed will today announce open-ended Treasury bond purchases worth $45 billion a month. In September the Fed announced it will buy $40 billion of mortgage-backed securities a month, while its maturity extension program Operation Twist, through which it sells shorter-dated bonds to buy longer-dated ones, ends this month.

Nigeria: Country Joins U. S. to Promote Investment in Thermal Power Generation

Nigeria and the United States Governments are working together to advance private-sector-led investment in the formers gas-fired electricity generation sub-sector.

Accordingly, relevant agencies of both countries in the power sector have been involved in ways to engineer private investment in the sector via attractive and sustainable investment models.

The Project Manager in charge of Energy and Climate Change at the United States Agency for International Development (USAID), Imeh Okon, said at a workshop organised for power sector officials on enhancing natural gas-fired electricity generation investment by the Nigerian Electricity Regulatory Commission (NERC) in Lagos that such efforts were initiated with consideration to the strategic importance of thermal power generation to Nigeria.

Tuesday London Gold Market Report

"Massive, Open-Ended Stimulus" Expected from Fed, More QE "Could See Gold Rally" 

from Ben Traynor, BullionVault

THE WHOLESALE gold price rose to $1712 an ounce Tuesday morning in London, a few Dollars above where they started the week, while stocks edged higher and US Treasury bonds fell ahead of tomorrow's Federal Reserve policy decision.

Mahama wins Ghana election

Mahama Victory Celebration

Accra -  Ghanaian incumbent John Dramani Mahama was on Sunday declared the winner of closely fought presidential polls, but the opposition alleged fraud in a nation that has been seen as a model of African democracy.

The electoral commission announced the result after a day of twists and turns linked to the vote on Friday and Saturday, with the stakes especially high in a country with a booming economy fuelled partly by newly discovered oil.

Results compiled by local media had early on Sunday pointed to a Mahama win, leading the opposition to strongly reject them, alleging fraud and claiming it had evidence that its candidate, Nana Akufo-Addo, was the real winner.

Libya sees a Future in Olive Oil

Libya is turning to olive oil -- the green gold of the Mediterranean -- to compete with its North Africa neighbors, conquer European markets and diversify its hydrocarbon-dependent economy.
“Libya has decided to promote the quality of its olive production to make its olive oil more competitive and increase exports to Europe,” an official of the export promotion center in Tripoli told AFP.
“The center’s new strategy involves all stakeholders in the production chain of the olive tree, particularly the private sector to boost its productivity and conquer foreign markets,” said Taher al-Zweibek.
Libya ranks as the world’s 12th largest olive oil producer, accounting for 0.25 percent of global production, according to the UN Food and Agriculture Organization (FAO).

Monday’s London Gold Market Report

Gold "Respecting Uptrend", Berlusconi Speaks of "Desperation" at Returning to Public Life after Monti Announces Resignation Plan

from Ben TraynorBullionVault

SPOT MARKET gold bullion prices rose to one-week highs above $1710 an ounce Monday morning, while European stock markets fell following news that Italy's prime minister plans to resign.

"Gold continues to consolidate its gains from August-September, and is still respecting its long term uptrend," says the latest technical analysis from bullion dealing Scotiabank.

Africa's Natural Resources - Going for Gold

Caroline Kende-Robb
Africa Progress Panel

Countries rich in mineral wealth have an unprecedented opportunity to make a breakthrough in development - a breakthrough that could transform millions of lives.

Rising natural resource revenues could underpin investment in productive infrastructure, decent education and health systems, job creation, smallholder agriculture, and programs to alleviate poverty, vulnerability and insecurity that blight so many lives in Africa.

To date, though, the risks associated with natural resources provide an antidote to undue optimism. The alternative outcomes have been painfully apparent.

Instead of financing high quality education, natural resource revenue is often siphoned into private bank accounts of national elites. Instead of creating jobs, supporting productive investment, and creating opportunities for the many, revenues from oil, gas and metals can fuel speculative bubbles in property markets, create windfall gains for the elite, widen disparities, and leave the poor even further behind.

"Corruption and weak governance are critical issues for Africa's oil, gas, and mining sector," said Kofi Annan, Former Secretary-General of the United Nations and Chair of the Africa Progress Panel, at aconsultation meeting  last Wednesday in Geneva.