Source: Marketwire Canada (May 23, 2012 - 7:00 PM EDT)

Gold Bull’s bets hit US$131-B, demand Strong

Gold players are the most Bullish in 4 months after investors accumulated more of the precious Yellow metal than ever and hedge funds raised bets on gains to a 5-month high.

16 of 23 analysts surveyed expect prices to gain this week and 1 was Neutral, the highest proportion since 11 November.

Investors increased their holdings in exchange traded products backed by Bullion for 7 consecutive weeks and now hold 2,407 metric tons valued at US$131-B, data show.
Demand for Gold is strengthening as European leaders seek to contain the region’s debt crisis and governments from the US to the UK. keep interest rates at all-time lows to maintain and boost growth.

The Federal Reserve and Bank of England have bought debt and the European Central Bank offered unlimited 3-yr loans to the region’s lenders, actions that spurred some investors to buy Gold as protection against inflation.

Gold rose 9.3% to 1,711.90 oz this year on the Comex in New York, heading for a 12th annual advance. That compares with a 9.5% rise in the Standard & Poor’s GSCI gauge of 24 commodities and a 10% appreciation in the MSCI All-Country World Index (MXWD) of equities. Treasuries fell 0.5%, a Bank of America Corp. index (MXWD) shows.

Hedge funds and other money managers increased bets on higher Gold prices by 10% to 197,552 futures and options in the week ended 28 February, the highest level since 6 September, Commodity Futures Trading Commission data show. The CFTC will publish the latest data late Saturday.

The most-traded options on 7 March were call options giving owners the right to buy Gold at 1,900 and 1,850 oz by 25 April, data from the Comex show. The most widely held contract confers the right to buy at 2,200 oz by 26 July. Stay tuned…

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

Source: http://www.livetradingnews.com/gold-demand-remains-high-65247.htm#.T14cW4Ew9K8

* Buyers rush to Asia's physical gold markets

* Gold/silver ratio bounces off five-month lows, nears 50 (Updates prices, adds comment)

By Jan Harvey

LONDON, March 1 (Reuters) - Gold rebounded on Thursday as buyers were tempted back to the market by the previous day's 5 percent price plunge, its biggest one-day drop since Oct. 2008, after Federal Reserve Chairman Ben Bernanke gave no hints of a third round of quantitative easing.

Prices failed to gain much traction as they rose, however, retreating from an early high of $1,724.76 an ounce as the euro surrendered gains against the dollar, declining further after dollar-supportive U.S. economic data mid-afternoon.

Spot gold was up 0.8 percent at $1,708.04 an ounce at 1437 GMT. Spot prices fell more than 5 percent on Wednesday as expectations for further easing in the world's biggest economy, which had been a key support of gold prices, faded.

Bullion's healthy bounce from lows and broader support offered to the market by low interest rates and high liquidity suggests prices may steady from here, however.

"In our view, the recent correction is temporary and does not question the mid- or long-term upward path of gold," BNP Paribas analyst Anne-Laure Tremblay said. "We may test $1,700 an ounce, but I would be surprised if we broke this level durably."

In key Asian physical gold markets overnight, jewellers, traders and investors rushed to take advantage of the nearly $100 drop in prices. "It's been a long time since we (saw) such decent buying," said one Hong Kong-based dealer.

"We've seen physical flows coming off steadily since the beginning of February," said Standard Bank analyst Walter de Wet. "Physical demand is just not there when gold is at $1,750-$1,800, and you really need that on top of the financial demand to push gold much higher."

Investment in gold-backed exchange-traded products, which issue securities backed with physical bullion, also rose on Wednesday, with holdings of the largest, New York's SPDR Gold Trust, up just over nine tonnes.

A lack of demand for physical bullion in recent weeks meant gold had little additional support once selling got underway on Comex, after Bernanke's remarks.

"We think a large part of why gold conceded so much came down to three other factors - $1,800 was proving to be too much of a hurdle and a certain staleness had entered the market; positioning had increased very swiftly in recent weeks; and physical demand has been non-existent," said UBS in a note.

"What the physical community do from here is hugely important," it added.

MARKETS RECOVER

A recovery in other markets, many of which also suffered heavy losses on Wednesday, helped gold in early trade, although it softened as the euro gave up gains midmorning.

It fell to a session low against the dollar after data showed new U.S. claims for unemployment benefits edged down last week, holding near four-year lows, suggesting the labour market recovery was gaining momentum.

European shares reversed early losses to move higher, with investors cheered by this week's ECB cash injection on the banking sector.

U.S. gold futures for April delivery were down $2.60 an ounce at $1,708.70

Among other precious metals, silver was up 0.4 percent at $34.74 an ounce. It also fell more than 6 percent on Wednesday. The gold/silver ratio, the number of silver ounces needed to buy an ounce of gold, jumped to 49.4 from a five-month low of 48.4 on Wednesday.

"Silver did manage to hold its short-term uptrend support, off the Dec. 29 low, currently around 34.37, on a closing basis," said ScotiaMocatta in a note.

"What was notable in the silver technicals was the strong rejection at 37.31, which is the 61.8 percent Fibonacci retracement level of the August to December downtrend," it added. "Key support is at 33.00, which has held on a closing basis since Jan. 25."

Spot platinum was up 0.6 percent at $1,685.49 an ounce, while palladium was up 0.2 percent at $699.97. (Editing by Alison Birrane)

Source: http://www.reuters.com/article/2012/03/01/markets-precious-idUSL4E8E13ID20120301

McLaren Resources Inc. announced the results of the recently completed seven hole 1,388 metre drill program which includes 7.0 grams gold per tonne (gpt) over 7.4 meters (m) from drill hole MCL-11-04 on the TimGinn Property. The property is located adjacent to the Goldcorp's Hollinger and McIntyre Mines which together have produced over 30 million ounces of gold to date in the Timmins Gold Camp.

Contact Information

McLaren Resources Inc.
Ivan Buzbuzian
President and CEO
416-203-6784 x 4850
416-368-1539 (FAX)
ibuzbuzian@mclarenresources.com
www.mclarenresources.com

Gold for April delivery was up $4.10 at $1,735.40 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,742.10 and as low as $1,728.30 an ounce while the spot price was adding $4, according to Kitco's gold index.

Silver prices were 24 cents higher at $33.94 an ounce while the U.S. dollar index was flat at $78.68.

The Bank of England added to its quantitative easing program by 50 billion pounds bringing the total to 325 billion pounds. The central bank left interested rates unchanged at 0.5% while the European Central Bank left its rate at 1%. Gold prices rose slowly after the news, but many experts had been expecting a bigger pop in the price with central banks unabashedly pumping money into the system.

"The reality is is that it's all about the euro," says Phil Streible, senior commodities broker at RJO Futures. "With the fragile state all of Europe is in right now, any sign of quantitative easing, or QE, is probably too little at this point ... more types of stimulus plans means more spending cuts are soon to follow." More stimulus can trigger a rush into gold as a hard asset, an alternative to the paper currency being devalued, but austerity measures bring in the deflation worry, where gold tends to selloff initially.

Streible says the real issue now is how does the euro react, and therefore gold, if Greece is unable to secure a debt deal, if its Parliament is unable to agree on austerity measures, if the European Central Bank doesn't take a loss on its Greek bonds, and if the troika - International Monetary Fund, European Central Bank and European Union - withhold the 130 billion euro second bailout.

On the one hand, the euro could rally, "it's like trimming the cancer off," says Streible, and would most likely support gold. Although if risk appetite returns in full force, gold might be forgotten as a safe haven asset. If Greece leaves the euro and all hell breaks loose and the euro plummets, gold could sink along with it at least in the short term.

Source: http://www.thestreet.com/story/11410010/1/gold-prices-gain-on-central-bank-easing.html

Sentiment for gold at the end of January compares starkly with late December, when prices dropped by more than 10 percent in their biggest monthly fall since the collapse of Lehman Brothers in an investor dash for cash.

A $400 price drop from last September's record $1,920.30 had left investors questioning whether gold had ended an 11-year rally.

Gold was up 0.8 percent at $1,742.59 an ounce by 1523 GMT, having earlier touched $1,747.39 - its highest since mid-December and up some 11 percent on the month to date.

Currency fundamentals turned against the market, with the euro knocked by weaker-than-expected U.S. consumer confidence. A stronger dollar makes gold dearer for holders of other currencies.

But the surprisingly weaker U.S. data, concerns that Portugal could follow a similar path to Greece plus figures pointing to a poor first quarter in the euro zone were supportive for gold.

More broadly, bullion was benefitting from a favorable monetary policy backdrop, with a jump of almost 5 percent last week after the U.S. Federal Reserve pledged to keep interest rates near zero until at least late 2014.

"There's been a lot of money put to work here during January. Gold was at the beginning of the year one of the few commodities that everyone felt would be a good performer and people have been investing accordingly," said Ole Hansen, senior manager at Saxo bank.

"After the big sell-off we had, there was a lot of nervousness heading into the last quarter. But the decisive move we've had, especially over the last week or so, has removed some of that worry," Hansen said, adding that any correction would be met by buyers.

A top U.S. Federal Reserve official said on Monday he would have preferred a more optimistic statement on the U.S. economy, after the central bank painted a grim picture of the recovery last week and forecast ultra-low interest rates.

PORTUGAL YIELDS BREACH 17 PERCENT

Portuguese bond yields have soared to levels that show markets expect the country will be unable to repay its debts without more bailout cash and will follow Greece in asking bondholders to stomach losses on their investments.

Ten-year Portuguese bond yields hit a euro-era high of more than 17 percent on Monday, matching levels seen in Greece five months ago.

"With gold starting 2012 at a cracking pace ... gold may be poised to set fresh highs this year but much earlier than many - ourselves included - would have expected." Ross Norman, chief executive of Sharps Pixley, said in a note.

Gold has gained for the last four weeks, with a spike in prices before the Lunar New Year holidays being driven partly by Chinese buying.

The most active U.S. April gold contract rose $13.40 an ounce to $1,744.40 an ounce.

Greece and its private creditors realize the need for it to avert a financial collapse and are close to a deal on restructuring Greek sovereign debt, Luxembourg Finance Minister Luc Frieden said on Tuesday.

Silver added 1 percent to trade at $33.79 an ounce after rising to $34.08, its strongest since mid-November. Platinum and palladium also firmed.

Holdings of the world's largest silver-backed exchange-traded fund, iShares Silver Trust (SLV.P) rose about 1 percent to 9,608.95 tonnes by Monday, from 9,510.70 tonnes on Friday.

Traders and investors were also watching for further developments at South African miner Impala Platinum (IMPJ.J). It said on Monday its Rustenburg operations remained shut after the majority of workers staging an illegal strike over wages failed to return to work.

(Additional reporting by Lewa Pardomuan in SINGAPORE; Editing by Anthony Barker)

Source: http://www.reuters.com/article/2012/01/31/us-markets-precious-idUSTRE80T1QZ20120131

Gold climbed to an almost seven-week high in New York on speculation that the Federal Reserve’s pledge to keep interest rates low will drive the dollar lower and boost demand for precious metals as an alternative asset.

Futures rose 2.1 percent yesterday after the Fed said its benchmark interest rate will stay low until at least late 2014. Low rates mean gold is more competitive against assets that pay dividends or interest. The dollar dropped as much as 0.5 percent against the euro today. Holdings of gold in exchange-traded funds jumped 0.4 percent yesterday and U.S. The U.S. Mint’s January gold coin sales are the most in a year.

“The Fed’s language was clearly dollar bearish,” said David Jollie, an analyst at Mitsui & Co. Precious Metals Inc. in London. “Most of the driving forces for buying gold are still there.”

Gold for April delivery jumped 1 percent to $1,720.30 an ounce at 7:31 a.m. on the Comex in New York after climbing to $1,723.50, the highest price for a most-active contract since Dec. 9. The metal has gained 9.8 percent this year and the dollar is down 1.6 percent against the euro.

Prices may “test” $1,800 an ounce next week, said Ong Yi Ling, an investment analyst at Phillip Futures Pte in Singapore.

Nine of 17 Fed officials expect borrowing costs will remain below 1 percent at the end of 2014, with six officials expecting zero rates to remain into 2015. Gold has almost doubled since March 2009 when the Fed started to use “extended period” language.

Holdings Rise

“Since the Fed first talked about an extended period of low rates, we have seen the euro situation worsen and downgrades of sovereign debt and those are part of the reason why we’ve seen gold go higher,” Jollie said. Gold’s high this year will be $2,075 an ounce, he forecast, according to the London Bullion Market Association’s survey for 2012.

Holdings in bullion-backed exchange-traded products rose to 2,358.022 metric tons yesterday, data compiled by Bloomberg show. The record is 2,392.976 on Dec. 13. The U.S. Mint sold 114,500 ounces of American Eagle gold coins so far this month. That’s the most since 133,500 ounces in January last year, according to data on the mint’s website. Silver coin sales total 5.5 million ounces this month, already the most since January 2011, the data show.

Silver for March delivery climbed 0.7 percent to $33.345 an ounce on the Comex and earlier traded at $33.595, the highest price since Dec. 2.

To contact the reporters on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net; Chanyaporn Chanjaroen in Singapore at cchanjaroen@bloomberg.net.

To contact the editor responsible for this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net

Source: http://www.bloomberg.com/news/2012-01-26/gold-rises-to-7-week-high-as-dollar-alternative.html

NEW YORK (TheStreet ) -- Gold prices were reversing earlier losses Wednesday as the Federal Reserve stayed committed to an easy monetary policy for a longer period of time.

Gold for February delivery was popping $27.30 at $1,691.80 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,695.70 and as low as $1,649.20 an ounce while the spot price was up $34, according to Kitco's gold index.

Gold prices reversed directions Wednesday and popped higher after the Fed said it would maintain low interest rates until late 2014, a year longer than previously stated. The Fed also promised to stay accommodative. "That's really really dovish and you are seeing a lot of people running into gold," says Phil Streible, senior commodities broker at RJO Futures.

The Fed said that inflation remains subdued, which Streible said was a good thing for gold. "Inflation will be created ... [the Fed is] artificially creating inflation for the next couple of years." The U.S. dollar index sold off on the news as more easy money means a devalued dollar. When paper currencies lose value, gold becomes appealing as a safe haven asset.

"The Fed telling us no rate increase to at least 2014 is a sharp rally promoter for gold," says George Gero, senior vice president at RBC Capital Markets, "as low interest rates to continue will make gold a good alternative hold and not expensive to maintain" The rise in gold also triggered short covering where investors who had been betting against gold bought back positions.

A popular gold trade of late has been to short the metal -- bet against higher prices -- as prices reach $1,670 an ounce and then cover shorts -- buy back positions -- as the metal hits $1,650 an ounce. The result is a tight technical trading range for gold. Streible says if gold can break through $1,680 on a closing basis we are going to $1,720."

Chuck Butler, president at EverBank World Markets, notes that the gold futures market has picked up 10,000 short contracts since the beginning of the year, suggesting that gold is being used primarily as a trading vehicle.

Waverly Advisors wrote in a note this morning that they are holding a small short position in gold and are looking to add as prices consolidate. "Traders not holding short positions could initiate on such a breakdown, and traders holding longs could further reduce exposure on weakness." It is this short term trading mentality that is dominating the gold market right now. Any pressure on these positions will trigger a rally.

"I think these people are short sighted in doing that," says Butler. He acknowledges that in the short-term gold will stay volatile, but that later in 2012 gold will reach its previous high of $1,923 an ounce and maybe even touch $2,000.

As long as the focus is on the troubles in Europe gold will come under pressure as it moves with the euro and inversely to the U.S. dollar. "But later this year we are going to be going through an election process in the U.S.," says Butler. "I think that process is going to be like last August, when we had the debt ceiling debacle and everyone just got out of dollars as fast as they could." Gold prices soared almost 13% in August as Standard & Poor's downgraded the U.S.' triple-A credit rating after a deadlocked Congress almost triggered a debt default.

"When the focus shifts back to the U.S., that will push people to buy gold again." The lynchpin, however, is stabilization in Europe. Butler thinks stabilization comes in the form of the European Central Bank taking a larger more obvious supportive role like the Fed, and that a Greece default must be taken off the table. Although the ECB's balance sheet has grown 27% since September and it is offering unlimited 3 year dollar loans at a low rate to banks -- effectively back stopping them -- it hasn't issued any grandiose statement regarding buying sovereign bonds. It currently is buying debt from banks and institutions but the ECB always says the purchases are limited in nature. If the ECB were to signal a longer commitment to its bond buying program, it could go a long way in stabilizing Europe.

"Any chance of that happening and [investors] feel calmer," says Butler, "markets for the most part really want to see the euro hold on here ... Stabilization, even if temporary, would shift the focus back to U.S."

Source: http://www.thestreet.com/story/11383912/1/gold-prices-fall-ahead-of-fed-announcement.html?cm_ven=GOOGLEN

He is not alone. Standing in Beijing’s Caibai store, the capital’s largest gold shop, he is surrounded by shoppers. These range from first time buyers picking up single items to veteran purchasers looking for an investment opportunity.

China overtook India as the world’s largest consumer of gold jewellery in the third quarter of 2011. The new year holiday, which started on Sunday night, is now a powerful source of demand in global gold markets as traditional family gifts of cash or presents are being replaced by gold for the auspicious year of the dragon.

“People who work in the city go back to their [village or town] for new year,” said Albert Cheng of the World Gold Council, a lobby group for the industry.

They bring back “all kinds of gifts, including clothes and electronics and whatever is not available in the village,” he added. “And increasingly this includes gold, too.”

Rising incomes in China have fuelled consumer spending on luxury items. Buyers look to gold as a more durable store of value at a time when other investment options in the country are extremely limited.

Gold consumption figures are inexact and estimates for the Chinese new year shopping period have yet to come out. But sales figures from Caibai help tell the story.

The value of sales in 2011 rose 61 per cent from the previous year, hitting Rmb 11.6bn ($1.8bn). The first weekend in January saw sales increase 50 per cent from the previous year, as customers stocked up on new year gifts.

“My grandchild will be born in March or April and I want it to have a gold dragon locket,” explains Ms. Wang, a frequent gold shopper, as she waits in line at the Caibai store.

She has picked out a pendant that costs more than $600, and she says she regularly buys gold jewellery for her family when the occasion calls for it.

Chinese gold shops have been preparing for months for the new year’s rush, but inevitably some are still sold out of the most popular products.

At one downtown branch of ICBC, the Chinese bank, a manager says that they have sold out of the small 50g gold bars amid the rush.

“Some customers just walk in and buy a bunch of 100g gold bars all at once,” says the manager with an air of surprise. A bar of that size costs more than $5,500 at current prices.

“People like to give them away,” she shrugs. “Companies come in too to buy gold bars for presents.”

While most gold purchases are driven by individuals, anecdotal evidence suggests Chinese businesses are buying more and more bullion as well.

“Some companies are giving out gold instead of cash to their employees,” said Jia Zhihong, founder of Kingold, a Wuhan-based jewellery maker.

China’s gold rush has been surprising in its strength and persistence, analysts and traders say.

Gold sales went up significantly in 2010, as investors sought refuge from inflation. But the gold craze has continued even as inflation cooled to it current 4.1 per cent.

In an environment where investment options are limited and bank accounts yield negative real interest rates, Chinese savers are increasingly turning to gold as an investment.

“Think of it like investing in the stock market,” says a cheerful clerk at the China Gold shop. “Gold maintains its value much better than stocks. And with the eurozone crisis the price is starting to head back up again.”

As for Mr Zhang, he just hopes his fiancé likes the bracelet.

Additional reporting by Gwen Chen in Beijing

Source: http://www.ft.com/cms/s/0/ba8af0a4-4354-11e1-9f28-00144feab49a.html#axzz1kImK2b8i

The euro rose to a two-week high and most European stocks gained after French borrowing costs dropped at an auction and Spain sold more bonds than its planned target. Commodities advanced amid signs China will relax credit controls. Demand for physical gold in India yesterday was the strongest UBS AG has seen this year, the bank said in a report.

“Gold is pulled upward by the firm equity markets and rising commodity prices,” said Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt. “In addition, the SPDR Gold Trust saw its first inflows since the end of November, which might be a signal that physical demand among private investors is picking up again.”

Gold for February delivery climbed 0.1 percent to $1,661.50 an ounce on the Comex in New York by 8:03 a.m., after rising earlier today as much as 0.6 percent to $1,670.60, the highest price since Dec. 13. Gold for immediate delivery was little changed at $1,659.70 an ounce in London.

The dollar fell as much as 0.5 percent against the euro after sliding 1 percent yesterday, the most since Nov. 11, after the International Monetary Fund said it plans to expand its lending resources to counter Europe’s debt crisis. Bullion typically moves counter to the greenback.

“There is some impact from the euro strengthening,” said John Meyer, an analyst at Fairfax IS in London. “With countries looking to print money for the IMF, gold gains in relative value against paper money.”

SPDR Trust

Gold holdings in the SPDR Gold Trust, the biggest exchange- traded product backed by bullion, rose 0.1 percent to 40.37 million ounces on Jan. 17, the first gain since Nov. 30. Global holdings in exchange-traded products backed by bullion slipped 0.2 percent to 2,354.94 metric tons yesterday, data compiled by Bloomberg show.

Palladium for March delivery advanced as much as 1.7 percent to $680 an ounce, the highest price since Dec. 12, while platinum for April delivery climbed as much as 1.1 percent to $1,541.50 an ounce. Silver for March delivery gained as much as 1.2 percent to $30.90 an ounce, the highest level since Dec. 14.

--With assistance from Glenys Sim in Singapore. Editors: John Deane, Claudia Carpenter

To contact the reporter on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

Source: http://www.businessweek.com/news/2012-01-19/gold-advances-to-a-one-month-high-as-euro-rallies-demand-gains.html

India’s jewellery demand dropped 26 percent in the third quarter of 2011 to 125.3 tonnes, hit by strong price swings and a weaker rupee, the industry-funded World Gold Council has said.

Mehul Choksi, managing director of jewellery retail giant Gitanjali Gems (GTGM.NS), brushed off concerns that a slowing of his country’s economic growth may put brakes on jewellery consumer demand.

“For the whole year we will end up with a 5-7 percent volume growth … (In 2012) I expect, as the prices of gold come down, it will once again catch up the momentum and will grow in volume by 10-15 percent, ” Choksi told Reuters in an interview on Sunday at an international jewellery fair.

Strong jewellery demand is expected to help Gitanjali group boost its revenues by about 35 percent in the new financial year which will start in March from the $2 billion made in the current year, Choksi said.

BOOSTING ITALIAN BRANDS

Gitanjali has been looking around to further expand its portfolio of Italian jewellery brands, which at present numbers six after the company last year bought four Italian jewellers, Stefan Hafner, IO Si, Porrati and Nouvelle Bague.

Choksi said a new acquisition may be made this year if he finds a complementary brand or product line in Italy. He declined to comment on reports in Italian media that Gitanjali was among potential buyers for Italian goldsmith Unoaerre.

Gitanjali plans to expand sales of its Italian brands in the Far East with the opening of distribution centres in China, Singapore and Japan in the next few months and is also interested in expanding on the markets in Russia, Kazakhstan and the Middle East, he said.

To help promote its Italian brands around the world Gitanjali has engaged Concetta Lanciaux, who used to advise Bernard Arnault, the head of the world’s biggest luxury group LVMH (LVMH.PA), Choksi said.

The Indian group, which has recently bought Chinese jewellery maker Grown Aim and British jewellery distribution company Alfred Terry, does not plan to buy any more jewellers outside Italy, he said.

“We very strongly believe that only one jewellery design can be universal for the whole world, which is Italian jewellery,” he said.

(Reporting by Svetlana Kovalyova; Editing by Greg Mahlich)

Source: http://www.firstpost.com/fwire/india-gold-jewellery-demand-seen-up-10-15-pct-in-2012-183143.html

MCL:CNSX

Company Highlights

Recent Acquisition

The company has recently acquired a 100% interest in 8 contiguous mining claims totalling 240 hectares located directly west of the Blue Quartz Property in East Timmins Ontario. The additional claims more than double McLaren's current strike length on the Blue Quartz Property.

History

Gold was first discovered on the property in 1907. The Blue Quartz mine was reported to have been produced in the 1920s and 30s from underground mining operations from the 514-foot deep mine shaft, including 6000 feet of crosscutting and drifting, over half of which was on the 500 foot level and lateral workings, to a depth of 740 foot level. Recent drilling programs in 2010/2011 confirm a strong potential for discovery on the property.

Blue Quartz Property Geology

The Blue Quartz Property Straddles both the Pipestone Fault as well as a subsidiary sub-parrallel fault, the Painkiller Fault. The rocks along the trace of these two faults have been silicified and are anomalous in gold. Bedrock mapped on the project area is Early Precambrian belonging to the Abitibi Greenstone Belt.

12 Month Stock Chart

Is your broker a CNSX dealer? Click here to view a comprehensive list of CNSX participants.

By MATT DAY

NEW YORK—Gold futures ticked higher as improvement in the U.S. labor market drew investors to the precious metal and the U.S. dollar.

The most actively traded gold contract, for February delivery, recently rose $7.80, or 0.5%, to $1,627.90 a troy ounce on the Comex division of the New York Mercantile Exchange.

The U.S. economy added 200,000 jobs in December, the Labor Department said on Friday, beating expectations for an increase of 155,000. The report was the latest in a series of mostly upbeat readings on the U.S., suggesting the world's largest economy was chugging along despite weakness in Europe and worries about top commodities consumer China.

"We're seeing capital flow into the dollar and into the U.S." in response, said Frank Lesh, a broker with FuturePath Trading. Investors concerned about Europe's debt crisis may see value in gold after the metal's recent declines, Mr. Lesh said.

Gold slipped by 10% in December, and during the last four months erased much of 2011's record-high prices above $1,900 as traders preferred the flexibility of cash instead of precious metals. Investors looked to moves in the euro as a gauge of the health of Europe's financial system, frequently selling gold when the European common currency fell.

But that relationship showed signs of breaking down this week, with both gold and the dollar rising. The euro was recently at $1.273 versus $1.279 late Thursday.

That decoupling may be a sign of renewed strength in the gold market, said Jim Steel, an analyst with HSBC, in a note. He added that low gold prices compared to the market's recent highs may be stimulating physical gold demand in emerging markets.

Gold futures ended on Thursday at their highest price in three weeks, as investors saw a bargain in the metal after December's declines. Others sought gold to shield their wealth as political tensions mounted ahead of a potential European oil embargo targeting Iran.

Write to Matt Day at matt.day@dowjones.com

Source: http://online.wsj.com/article/SB10001424052970203471004577144534160378016.html

Jan. 2 (Bloomberg) -- Gold climbed to the highest level in a week in thin holiday trading on reports that Iran produced its first nuclear fuel rod, spurring investors to buy the precious metal as a haven.

Bullion for immediate delivery closed at $1,566.27 an ounce, the highest closing level since Dec. 27. Silver for cash delivery was little changed at $27.8625 an ounce.

A domestically made rod was inserted into the core of Tehran’s atomic research reactor after performance tests, the Iranian Students News Agency reported today, citing the country’s atomic energy agency. The Tehran reactor produces radioisotopes for cancer treatment, according to Mehr news agency. Nuclear fuel rods contain pellets of enriched uranium that provide fuel for nuclear power plants.

“Iran’s nuclear plans have raised fears that it is getting desperate and will take some drastic step,” Gnanasekar Thiagarajan, a director at Commtrendz Risk Management Services Pvt., said by phone from Mumbai. “More sanctions are expected from the U.S. and other nations. This will have a positive impact on gold prices as ideally people would try to buy gold.”

The U.S. and allies are increasing pressure on Iran to halt what they say may be a covert nuclear weapons program. Sanctions signed into law by President Barack Obama on Dec. 31 aim to deter dealings with the Iranian central bank, and the European Union is considering a ban on imports of oil from Iran, the world’s third-largest oil exporter. Iran denies seeking to develop atomic weapons.

Reserves Climb

Gold reserves increased in November at Belarus, Turkey, Tajikistan, Macedonia, Mauritius and Morocco, and declined in Mexico, according to data on the International Monetary Fund’s website. Turkey’s holdings increased to 5.758 million ounces from 4.429 million ounces and Mexico’s declined to 3.413 million ounces from 3.417 million ounces in October, the data showed. Morocco’s holdings were 710,000 ounces in November compared with 708,800 ounces in October, according to the data.

Gold gained 10 percent in 2011, rallying for an 11th year, as investors bought gold to protect their wealth from market volatility due to the Euro zone debt crisis.

“The outlook for 2012 for gold and silver is not very bullish and rallies should be sold,” said Kunal Shah, head of commodity research at Mumbai-based brokerage Nirmal Bang Commodities Pvt. “The strength in the dollar, slack demand from India and China are seen negative for gold prices.”

--With assistance from Ayesha Daya in Dubai and Madelene Pearson in Melbourne. Editors: Richard Dobson, Thomas Kutty Abraham

To contact the reporter on this story: Swansy Afonso in Mumbai at safonso2@bloomberg.net

To contact the editor responsible for this story: Richard Dobson at rdobson4@bloomberg.net

Source: http://www.businessweek.com/news/2012-01-03/gold-climbs-to-one-week-high-as-iran-makes-nuclear-rod.html

By Chirag Mehta, Fund Manager, Commodities at Quantum AMC

As 2011 draws to a close, it is easy to say that the year has seen its share of ups and downs. This is mainly because of the high volatility in the markets, in reaction to the daily pressures on the world stage. We witnessed one of the most dramatic price increases in gold followed by a sharp correction, and 2011 can probably be defined as one of the most volatile years for the precious yellow metal. Gold surged from roughly USD 1400 to USD 1900 within a single year as Europe's debt crisis aggravated, only to be followed by a 61% revision from USD 1900 to just under USD 1600 in the last three months of 2011.

The overall global environment remains complicated, and the effects can still be felt on the markets. Historically, gold tends to thrive in such uncertain times. On the contrary, there is a sharp fall in gold prices, and hence investors are asking all types of questions surrounding this unexpected decline in gold prices. Many market watchers are so perplexed that they are surrendering to the "gold bubble" story.

Gold's recent decline is a much talked about subject these days. These discussions however, omit the very fact that gold prices are still positive with gains of almost 15% for the year. Such gains come at a time when most of the other asset classes are negative. We believe that the recent fall in gold's price is akin to the corrective phases seen in gold throughout this Bull Run. The fall can probably be attributed to a variety of reasons like the increase in dollar, liquidation to fund losses in other assets / meet redemptions, a dash for cash (dollar liquidity shortage) and severe slow down in physical demand, etc.

Yes, all these reasons do help surmise gold?s recent decline albeit not completely. It is highly probable that the fall is more on account of lack of catalysts that have helped push gold to record highs. In simple words, it is a move towards more rational behavior despite the ongoing crisis. We are used to seeing interventions by central banks through monetary infusions to resolve the underlying issues and attempt to promote growth in such uncertain times. However, this time around, the market forces have pressured central banks to not bow down to such ill-conceived notions.

The reluctance of central banks although forced to avoid further easing measures have in the short term removed the catalysts for gold prices to increase further. Markets were expecting an announcement of QE3 soon which didn't materialise even after the recent FOMC meeting. In light of intensification of the euro zone crisis, there was a view that the ECB would start printing to paper over the debt problems, but it's not happened as yet.

This reluctance (although forced) along with other factors have triggered the fall in gold prices. It is perhaps a momentary phase, which will end at the first signs of monetary debasement. The current show of rationality is just an eyewash since there have been no real efforts to cut down spending, control deficits and solve the long-term funding and debt issues. The Euro zone crisis has not found a resolution yet. There have been some signs of easing lately because of ECB (European Central Bank) induced liquidity measure, which is again a bullish sign for gold.

Outlook:

Remember that gold prices have been soaring for 10 straight years, and from that long-term perspective, not much has changed for gold.

The main reason we believe that it?s fundamentals are probably intact is because of the policy-making theories; mainly the concept that the economy can be made stronger via more monetary inflation, further credit expansion and additional government spending.

The main influencing factor in the gold market today is the massive and unrealistic pile of sovereign debt throughout the western financial system. This pile up is coupled with a paper currency that is positioned as the reserve currency of the world, which unfortunately can be issued and abused by a single government. These high levels of debt combined with slow economic growth, compel central banks around the world to 'print' more dollars and other currencies (in order to pay the bills), stimulate the economy and inflate the debt burden with an intentional plan of currency devaluation.

The Euro zone is currently a ticking financial time bomb as sovereign debt slowly positions itself towards a massive explosion of epic proportions. The intended lending by ECB to European banks to facilitate liquidity and resolve the crisis is in vain as a debt crisis cannot be solved by issuing more debt or by creating money out of thin air. It is just an extension of the measures undertaken by the Fed towards more monetary debasement. Issues such as the lack of internal policing and commitment from its member nations render the possibility of a credible fiscal union meaningless.

The free market principles and a natural cycle of correcting the malfunctions and excesses in the economy have been severely hampered by the dominant policymaking. This is a cause for real concern. Various tools have been employed like accounting changes, bail-outs and support schemes, currency interventions, imposition of zero interest rates, collateral squeezes, etc. but they are only making things worse. Such aids leave the markets guessing about the potential levels that would propel the central bankers to pull the triggers for further monetary infusions. These actions could create short-term market rallies and add to the speculative fervor. Markets are functioning on a perverse logic that weak data is good for the markets as it only increases the certainty of further monetary interventions with money created out of thin air. However, these methods not only fail to address the underlying problems, but also complicate problems over the long term and lead to misallocation and misuse of scarce resources.

Negative real rates still prevail, and with the economic outlook still showing no signs of real improvement, these downbeat real rates will not fade away easily as any increase in interest rates would cause considerable strain to the already hampered public finances. They are likely to exist for a longer period, and would probably help gold move up as investors look at it from a „wealth preservation? perspective. Diversification of reserves and investment into gold seems to be the course of action, and is likely to continue in the future as well, thereby supporting gold prices. Such corrective phases tend to drive gold from weaker to much stronger and stable hands thus reinforcing the diversification theme.

To sum up, there does not seem to be any change in the fundamentals that have led to the Bull Run in gold. The factors that have caused a sharp decline in gold prices seem to be of a temporary nature. This is most likely a corrective, consolidative phase in gold prices, which has been an integral part of the move and should not come as a surprise.

Source: http://www.moneycontrol.com/news/mf-experts/outlook-2012-gold-looks-solid-as-ever-says-quantum-amc_640828.html

Gold dropped last week as the dollar climbed to an 11-month high versus the euro. The greenback was little changed today. Fitch Ratings lowered its outlook for France’s credit ranking to negative from stable on Dec. 16, saying the country’s budget deficit and government borrowings make it more vulnerable to the region’s debt crisis than other top-rated euro-zone nations.

“Gold suffered from a renewed rush for dollar liquidity, but in the long run its outlook remains solid,” Andrey Kryuchenkov, an analyst at VTB Capital in London, wrote today in a report. “Accommodative monetary policy across the globe will continue to secure gold’s inflation hedge role.”

Bullion for February delivery rose 0.6 percent to $1,607.20 an ounce by 8:23 a.m. on the Comex in New York. Prices dropped 6.9 percent last week, the most since Sept. 23, and touched a two-month low of $1,562.50 on Dec. 15. Immediate-delivery gold was up 0.4 percent at $1,605.10 in London.

Prices will average $1,810 next year as central banks buy between 400 metric tons and 600 tons, Goldman Sachs Group Inc. said today in a report. It has averaged $1,572 this year.

ETP Holdings

Gold, up 13 percent this year, reached a record $1,923.70 on Sept. 6 as investors sought to diversify away from equities and some currencies amid concerns that the euro zone may fragment. Since then, it’s lost 16 percent. Holdings in exchange-traded products backed by bullion dropped 1.3 tons to 2,346.2 tons on Dec. 16, data compiled by Bloomberg show. Assets reached a record 2,360.8 tons on Dec. 14.

The dollar gained as much as 0.5 percent versus the euro today after North Korean state television said national leader Kim Jong Il died, spurring concern instability may increase in the region and boosting demand for the U.S. currency as a haven.

“Gold is still an attractive investment, and while a stronger dollar will cap gains, prices should remain supported as there are many buyers looking out for a bargain,” said Tao Jinfeng, chief investment consultant at Haitong Futures Co., China’s largest brokerage by registered capital.

Silver for March delivery fell 1.4 percent to $29.31 an ounce, taking its loss this year to 5.2 percent.

Platinum for January delivery was little changed at $1,420.50 an ounce and is down 20 percent this year. Palladium for March delivery was little changed at $626.35 an ounce. Prices dropped 22 percent in 2011.

--Editors: Sharon Lindores, Nicholas Larkin

To contact the reporters on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net; Glenys Sim in Singapore at gsim4@bloomberg.net

To contact the editor responsible for this story: John Deane at jdeane3@bloomberg.ne

Source: http://www.businessweek.com/news/2011-12-19/gold-gains-in-new-york-as-concern-about-europe-spurs-demand.html

Frankfurt: 3ML

Shares: 25,094,281

McLaren Resources Inc. (“McLaren”) (CNSX: MCL, Frankfurt: 3ML) is pleased to announce that it has raised $850,000 by way of a non brokered private placement financing consisting of 3,000,000 Units for gross proceeds of $600,000 and 1,000,000 Flow-Through Shares for gross proceeds of $250,000.

The financing was made pursuant to exemptions from the prospectus requirements of the applicable securities laws consisting of 3,000,000 Units (the “Units”) at a price of $0.20 per Unit and 1,000,000 common shares issued on a “flow-through” basis (the “Flow-Through Shares”) at a price of $0.25 per Flow-Through Share.

Each Unit is comprised of one common share in the capital of McLaren and one-half of one

common share purchase warrant (a “Warrant”). Each whole Warrant will entitle the holder to

acquire an additional common share at an exercise price of $0.30 per share for a period of 18

months. All securities issued will be subject to a hold period of four months and one day.

The net proceeds from the sale of the Units will be used for exploration and general corporate purposes. The gross proceeds from the Flow-Through Shares will be used by McLaren to continue

exploration and development on its gold properties located in Timmins, Ontario.

McLaren Resources Inc. is a Canadian based junior exploration company engaged in acquiring, exploring, and developing resource properties in Canada.

Contact Information:

Ivan Buzbuzian

President and CEO

McLAREN RESOURCES INC.

65 Queen Street West, Suite 500

Toronto ON, M5H 2M5

Tel.: 416-203-6784/ Fax: 416-368-1539

E-mail: ibuzbuzian@mclarenresources.com

For more information visit our web site at www.mclarenresources.com or contact Ivan Buzbuzian, President and CEO of McLaren Resources, at 416-203-6784 x 4850.

The Canadian National Stock Exchange has neither approved, nor disapproved on the contents of this press release.

Certain statements contained in this press release constitute "forward looking statements". These statements are based on current expectations of management, however are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from the forward-looking statements in this news release. Readers are cautioned not to place undue reliance on these statements. The Company does not undertake any obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise after the date hereof, except as required by securities laws.

While some headlines are predicting the end of the bull market for gold, many commentators remain bullish on the yellow metal and all agree that more volatility should be expected

Author: Geoff Candy

GRONINGEN -

As gold prices plunged as much as 3.5% in trade yesterday, permabear and economist, Nouriel Roubini, was engaging in some gold bull baiting on Twitter.

"Gold at a 7 weeks [sic] low down to 1635. Where is 2000 gold dear gold bugs?" He said, and, later in the day, "Gold bugs in hiding as gold prices plunge."

At roughly the same time gold mining entrepreneur Rob McEwen in a talk to the Geological Society of Nevada, stood firm on his prediction that gold prices would hit $5,000 over the long term

McEwen and Roubini represent polar opposite visions of the metal that are long held and well reported on and so their sticking to their guns came as little surprise. More noteworthy in the context of the second-worst rout in the metal since the 2008 financial crisis were the recent comments by author and economist, Dennis Gartman.

In his most recent letter, Gartman was quoted by Bloomberg as writing, " "Since the early autumn here in the Northern Hemisphere gold has failed to make a new high. Each high has been progressively lower than the previous high, and now we've confirmation that the new interim low is lower than the previous low. We have the beginnings of a real bear market, and the death of a bull."

He went on to add that while buying in China rose significantly in October, the news of the surge failed to move markets, "Buying of that sort should have sent gold prices soaring," Gartman wrote. "One of the oldest rules of trading is simply this: a market that cannot or does not respond to bullish news is a bearish market not a bullish one."

The question now becomes, are the recent falls a sign of a longer term pull back in the metal, or rather a shorter term move brought about by year-end squaring and liquidations by the more speculative longs, in order to cover other loss-making positions.

While Gartman has turned bearish, many other commentators remain positive about the longer term outlook for the metal.

UBS's Edel Tully wrote this morning, "Our core view on gold remains bullish. We forecast an average 2012 price of $2,050. Most of the factors that pushed gold higher in 2011 are not going away. Indeed, a compelling case for higher gold returns next year can be built on: persistent sovereign stress, an expected recession in Europe, benign growth across developed markets, a relatively sedate outlook for competing asset classes, still-low interest rates in the US, and further rate declines in Europe, as we expect. Adding to the mix another of our expectations - that central banks will maintain their 2011 gold buying spree - makes gold a compelling investment thesis."

However, while the bank remains positive on gold it has lowered its average gold price estimates for both 2011 and 2012 by 2% and 1% respectively to $1,570/oz and $2,050/oz.

And, overall, the group is more bearish on commodities in general, " Two of our most important signals for the miners and commodities have turned negative. Capital is flowing out of emerging markets and back to the US, undermining commodity demand - because macro data and credit conditions there are improving, making an imminent commodity-supporting ‘QE3' unlikely. Meanwhile, European bank deleveraging promises more credit stress, directing commodity consumers and traders to destock. Right now, commodities need support from either a resurgent China or a substantial, US/European-led QE programme."

Standard Bank, writing in its daily commodities note yesterday said of the weakness in the yellow metal, We believe that this downward pressure is likely to remain in place. Physical market demand from India and South East Asia continues to pick up, with gold below $1,650 providing support at this key technical level. However, as pointed out yesterday, the pick-up in demand is from relatively low levels, and overall demand remains well below levels seen in October."

But, as it points out, "While gold in dollar-terms is under huge pressure, gold in euro-terms only shed €20. Market sentiment and momentum has also turned bearish on gold, reflected in the short-dated gold skew where puts are in high demand relative to calls."

Silver specialist and precious metals commentator, David Morgan, speaking on Mineweb.com's metals weekly podcast, described the situation currently being seen in markets as one of "wait-you-out or scare-you-out."

He explained that either markets will "scare you out" with huge drops that are very rapid - or "wear you out where you get these long consolidations where silver and/or gold do not make new highs but the fundamentals keep getting better and better."

Currently he says, there is a lot of fear in markets and, while a minority of people view gold and silver as the "ultimate cash" most of the world's population view currency as such and, as a result, when there is a liquidity squeeze markets move into cash

"There's a rush from any asset - real estate, stocks, bonds, even metals, and especially paper metals, into the monetary base or the ultimate monetary base which is the currency.And that puts a lot of pressure upward in certain currencies like the US dollar because right now it's perceived to be the safest... I believe this is an intermediate term situation which puts pressure [downward] on the gold and silver price and also puts pressure upward on the currencies, especially the ones perceived to be the strongest and safest."

All in all, while a lot of commentators remain bullish long-term there is a significant amount of fear present in markets, especially as we head toward the year-end. As usual coming up to and during the holidays emotions are high and when you mix in a continued crisis in the euro zone, looming debt problems in the U.S. and the frantic scramble to square the accounts before December 31st, it is safe to guess that markets are both scared and worn out. How long that will last though, is anyone's guess.

Source: http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=141729&sn=Detail&pid=102055