Gold News

Mining shares slip away

Optimism over the effects of a $7.5 billion cash injection in troubled Citibank failed to carry over into trading today (November 28th), with gold mining shares among the strugglers.

Citibank's investment package from Abu Dhabi Investment Authority (ADIA) served to buoy the markets on a day when poor economic data looked otherwise likely to drag it down, with experts reading today's drop as the delayed effect of that data.

Markets across the world have now suffered today as mining shares slipped, notably in Australia, with its large mining sector.

Shares in Lihir Gold dropped through the day to a total of six per cent, while the world's biggest mining firm, BHP Billiton, fell 1.5 per cent, after its AGM failed to affirm that a merger with Rio Tinto was definitely on the cards.

For Lihir the drop in share value came despite claims from the company that it was making progress in the re-establishment of operations at the Ballarat Goldfields underground mine, after last week's fall of ground in its main decline.

But underlying the slip in gold shares across the board was a drop in enthusiasm to buy gold, with the metal's price cooling off from its recent assault on the $850 mark.

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