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Gold Swings As Investors Weigh Tapering Prospects By Year-end

September 25, 2013

Bullion surged 4.1 percent on Sept. 18 after the Fed unexpectedly refrained from reducing the $85 billion monthly bond purchases. Twenty-four of 41 economists surveyed by Bloomberg last week said that policy makers will scale back the program in December. Fed Bank of New York President William C. Dudley said that the central bank may reduce the pace of purchases in 2013, depending on the economys performance. It was a short-term blip, said Steven Dooley, head of research at Forex Capital Trading Pty in Melbourne , referring to golds gains after the Feds decision last week.

Gold edges up for second session; physical demand soft

economic stimulus. Bullion has fallen about 20 percent this year – after 12 years of gains – on fears the U.S. Federal Reserve would begin tapering its $85 billion monthly bond purchases. Recent comments by the Fed have caused confusion as to the exact timing. When prices fell sharply in April and June, physical demand picked up strongly. With continued volatility in prices and expectations of further declines, consumers have stayed away.

Philippines’ Gold Mining Regulations Cause Problems for Local Prospectors

But because its an adventure, for money, people risk if it is about money, said Magbanua. The Philippine government is eager to profit from the countrys gold, but wants to improve safety and raise revenues. In recent years, authorities have welcomed big mining operators, such as Canadian-owned TVI Resources Development, which extracts copper, zinc, silver and gold in the southern island of Mindanao. TVI is expected to provide better protection of the environment and workers while still increasing revenue. John Ridsdel, formerly chief operating officer with TVI, said increasing revenue and safety can be a steep challenge in the rural parts of the Philippines. When a mining operation goes into pretty anywhere in our country, you are going into an area where the state is absent, there are no roads, there are no doctors, there are no nurses, there are no health clinics, there are no schools, there are no police, there are no judges, there’s none of that stuff or very little, said Ridsdel, outlining the difficulties mine operations face. He says mining operators end up providing some of these basic services. TVI reports spending some $2 Elevation Group million a year on community outreach and reforestation efforts. Mining companies also paid more than half a billion dollars in taxes to the Philippine government in 2011.


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