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While gold in all currencies benefitted from last week's US Federal Reserve announcement of an open-ended third round of quantitative easing, South African producers did exceptionally well due to the weak rand:dollar exchange rate.
The rand, which has initially benefitted from the signing of a wage agreement at Lonmin, has since seen the boost subsiding over concerns about the precedent that the deal might set, the strength of the dollar, concerns around the mining sector, and the South African Reserve Bank's decision to keep rates on hold. Mineweb says that gold prices in dollar terms are likely to remain higher - which is welcome news to the local mining sector which has had its fair share of troubles of late.
Read the full article on http://www.mineweb.com
