Since the US elections on Tuesday, investors have become worried that Washington's politicians may struggle to find a compromise to cut the budget deficit before nearly $600 billion worth of spending cuts and tax increases kick in early in 2013.

Markets are also watching the debt ceiling, which needs to be raised to avoid a government shutdown.

Spot gold was at $1,738.01 an ounce by 17:03 SA time, up 0.64 percent, after earlier touching a three-week peak of $1,738.66, while US gold rose 0.66 percent to $1,737.40.

A stronger dollar offset further upside in gold by making the metal more costly in other currencies.

The euro dropped to a two-month low against the dollar on Friday and could extend losses as fears mounted that the euro zone's debt crisis and deteriorating economic conditions could drag down global economic growth.

Gold prices rose on Wednesday after Obama's re-election gave markets a boost by ending weeks of uncertainty and has since extended gains as concerns over the fiscal cliff have intensified.

“Wrangling (between Obama and Congress) between now and the end of the year might underpin gold,” William Adams, head of research at Fastmarkets.com, said.

Nic Brown, head of commodities research at Natixis, said the Obama victory signalled a continuing environment of relaxed monetary policy, which was likely to support gold prices.

“An Obama victory enhances the likely longevity of ongoing quantitative easing,” he said.

Standard Bank said in a market note, “In spite of dollar strength, the market appears to continue to take comfort from Obama's re-election and the implied support this gives to continued monetary accommodation from the Fed.”

Money printing by central banks boosts gold's appeal as it keeps interest rates at a low level, reducing the opportunity cost of holding a metal that has no yield outside its actual value.

Spot gold is likely to gain more to $1,749 per ounce, driven by an upward wave c, according to Reuters market analyst Wang Tao.

China's economy strode further along the road of recovery from its slowest growth in three years, data for October showed on Friday, as infrastructure investment accelerated and output from factories ran at its fastest in five months.

China's gold demand is expected to grow 1 percent this year to a record of around 860 tonnes, Philip Klapwijk, the global head of metals at consultancy Thomson Reuters GFMS, said this week, with both jewellery and investment sales rising.

Adams said, “If we start to see more economic momentum in China, that would only be good for consumer buying of jewellery. People would have more money to invest in gold.”

Gold importers in India, the world's biggest buyer of bullion, paused in making purchases ahead of festivals next week as a weaker rupee pushed up the gold price for Indian buyers.

The festive season in India will peak with Dhanteras and Diwali, while the wedding season continues until December.

Spot platinum traded up 1.57 percent to $1,564.99 an ounce. Spot palladium was up 0.08 percent at $612.47 an ounce.

Silver rose 1.27 percent to $32.73 an ounce. - Reuters

Source: http://www.iol.co.za/business/markets/commodities/gold-hits-3-week-high-on-us-fiscal-fears-1.1420703#.UJ0ybmcoqJQ

The Inferred Mineral Resource estimate, at cut-offs of 0.5 g/t Au for mineralization above an elevation of 130 m above sea level (masl), representing open-pit potential and for a cut-off of 3 g/t Au below 130 masl, representing underground potential is set out in the table below. Note that 130 masl approximately corresponds to 170 m vertical depth in areas proximal to main mineralization zones.

 ----------------------------------------------------------
 |Cut-off grade         |Tonnes   |Au (g/t)|Contained (Oz)|
 |--------------------------------------------------------|
 |0.5 g/t above 130 masl|3,800,000|2.50    |306,100       |
 |--------------------------------------------------------|
 |3 g/t below 130 masl  |1,200,000|4.33    |166,000       |
 |--------------------------------------------------------|
 |Total                 |5,000,000|2.93    |472,100       |
 ----------------------------------------------------------

Note: A constant bulk density of 2.89 t/m3 has been used.

-The Omega Gold Deposit resource estimate is based on 152 drill holes spread over 750 m of strike length. Out of the 152 drill holes, 96 are from the four phases of the ongoing 2011-2012 exploration program. The rest are from historical exploration in the 1980’s. All holes are located on an approximate 50 m X 50 m grid.

-The Omega Deposit is comprised of 13 sub-parallel mineralized horizons hosted mostly in highly altered and sheared tholeiites and in metasediments and tuffs close to surface. The mineralization is structurally controlled by thrust fault planes and cross faults. These 13 mineralized horizons comprise the historical 1, 2, 14 and 21 ore zones, which were mined in the old Omega Mine. The Omega Gold Deposit is associated with pyrite conforming to an alteration zone of albitite, sericite, carbonate and leucoxene and conformable to the stratigraphy situated along the Larder Lake Break. Structure is complex, with a series of thrust faults controlling the mineralization.

-The Omega Deposit is associated with Archean volcanics and adjacent to komatiites along the Larder Lake Break. Mineralization is of Timiskaming age.

Grade Estimation Method

-All wireframes in DXF format and drill hole files were imported into CAE Datamine.

-Individual zones were identified.

-Samples within each zone were composited to 1 m intervals.

Statistical and variogram analysis of the grades was carried out.

A block model with blocks 25 m wide in the X and Y directions and 2 m thick in the Y direction was prepared.

-Each individual zone was filled with blocks using sub-cells down to 5 m in the east and 1 m in the north and vertical directions.

-Block grades were estimated into each parent block within the zones and outside the zones using ordinary kriging.

-The blocks located within the areas of previous mining were removed from the resource estimate.

-The individual models were combined into one final model.

Samples

A total of 14,427 composites were available with 975 composite samples selected from within the zone wireframes and these were used for the variogram analysis and estimation of the blocks within the zones.

Bulk Density

An average density of 2.89 t/m3 has been used for this estimate.

True Width of Mineralization

The orientation of the drilling is in two primary directions, approximately perpendicular to the strike of the mineralized zone. Twenty holes have been drilled from the footwall side and have an azimuth of about 145°, within the remainder having an approximate azimuth of 325°.

Using TrueDip process in CAE Datamine® and averaging the results, it was found that there is only an approximately 5% reduction of the true width for the holes drilled from the hanging wall, which represents the majority of the holes drilled. For the holes drilled from the footwall there was 68% reduction from the apparent width.

Exploration Potential

There is significant exploration potential at the Project. Parts of the zones have not been sufficiently drilled to enable their continuity to be assessed. A number of drill holes failed to penetrate to the other side of the previously mined areas. These areas will need infill drilling.

There also remains down-plunge potential for many of the zones, along with their potential extension along strike.

Technical Report Comments

Robert Kasner, President and CEO of Mistango, comments,” I am very pleased with the resource estimate in the potential open pit area. We can now build on this to bring it into the indicated category by following the suggestions of AMC. Also, the resource below the pit is very encouraging.

We are presently completing several deep holes to confirm the mineralization continues to depth and complete a work commitment on the adjoining MacGregor option. I am pleased to say the first two holes have intersected similar geology and mineralized structures contained in the upper part of the Omega mine. Upon completion of the deep drilling program a plan will be implemented to carry out the recommendations of AMC in the potential open pit area.”

Literature review and sample comparison done by Mistango, indicates that the Omega Deposit has similar alteration assemblages and mineralization to the past producing Kerr-Addison Mine located 6 km east of the Omega Project site.

Qualified Person

Cath Pitman P.Geo.(Ontario) is a full-time employee of AMC Mining Consultants (Canada) Ltd., and independent of Mistango River Resources Inc. She has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which she is undertaking to qualify as a Qualified Person in accordance with NI 43-101. Cath Pitman consents to the inclusion in this announcement of the matters based on her information in the form and context in which it appears.

About Mistango

Mistango River Resources Inc. is a Canadian based exploration and development company holding several properties in Ontario and Quebec, including large land holdings in the Kirkland Lake region. Mistango specializes in precious metals and VMS hosted base metals, with recent projects centered on the Omega and Sackville properties in Ontario. Mistango brings a distinguished board and technical staff with expertise and many years in mineral exploration and mining fields. For additional information about Mistango and its mining properties, please visit Mistango’s website www.mistangoriverresources.ca.

This news release contains certain “forward-looking information”. All statements, other than statements of historical fact that address activities, events or developments that Mistango believes, expects or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of Mistango based on information currently available to Mistango. Forward looking statements are subject to a number of significant risks and uncertainties and other factors that may cause the actual results of Mistango to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Mistango. Factors that would cause actual results or events to differ materially from current expectations include, but are not limited to, Mistango’s decision to cancel its exploration program on its Omega gold property.

For further information please contact:

Mistango River Resources Inc. CHF Investor Relations

Robert J. Kasner, President & CEO Stephanie Fitzgerald

Telephone: 705-568-7540 Telephone: 416-868-1079 x222

E-mail: kasner1@ntl.aibn.com E-mail: stephanie@chfir.com

Donald Kasner, Investor Relations

Telephone: 705-570-1019

E-mail: drkkasner@yahoo.ca

Website: www.mistangoriverresources.ca

India’s imports are set to climb for the first time in six quarters as a decline in domestic prices stokes jewelry and investment purchases before major festivals, according to Bachhraj Bamalwa, the chairman of the All India Gems & Jewellery Trade Federation. Prices also gained as a report showed Japan’s exports fell the most since the aftermath of last year’s earthquake, increasing speculation that the nation will enact more stimulus measures.

“Physical demand is providing some support,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates, said in a telephone interview. “The pressure is clearly on the Bank of Japan (8301) to introduce fresh easing measures.”

Gold futures for December delivery rose 0.1 percent to settle at $1,726.30 an ounce at 1:35 p.m. on the Comex in New York, after reaching $1,714.40, the lowest since Sept. 7.

Prices gained 11 percent in the third quarter after central banks in the U.S., China, Japan and Europe took action to boost their economies. Japanese Economy Minister Seiji Maehara yesterday said the country needs more monetary easing and policy efforts to encourage growth.

Silver futures for December delivery advanced 0.5 percent to $32.252 an ounce in New York. Earlier, the price touched $31.71, the lowest since Sept. 4.

On the New York Mercantile Exchange, platinum futures for January delivery fell 0.2 percent to $1,612.20 an ounce, the third straight decline. Palladium futures for December delivery slipped 0.1 percent to $622.65 an ounce.

To contact the reporter on this story: Debarati Roy in New York at droy5@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Source: http://www.bloomberg.com/news/2012-10-22/gold-rebounds-from-six-week-low-on-india-demand-outlook.html

Spot gold was at $1,781.20 a troy ounce at 0531 GMT, up $3.90 from its previous close.

Though concerns in the broader market cooled after Spain presented an austere 2013 budget announced Thursday, investors are cautiously eying the results of a Spanish banking review scheduled to be announced later in the global trading day.

Either way, the direction for gold appears to be up.

"It is a combination of safe-haven buying and more liquidity coming into the market," IG Markets strategist Stan Shamu said.

If the Spanish banking review outcome hurts broader market sentiment, risk-off investors may flock to gold as a safe store of value. Meanwhile, concern about rising inflation that would accompany additional stimulus could prompt gold demand for the same reason.

"Longer term, we expect to see bullion continue to push higher, supported by central bank buying, QE[quantitative easing]-driven speculative investment and worries in Asia about inflation," ANZ said.

The metal has gained 5.3% since the start of the month, when central banks, including the U.S. Federal Reserve, announced more monetary stimulus through bond-buying.

Dollar weakness also boosted demand, as dollar-denominated commodities appear more affordable to holders of other currencies when the greenback softens.

The WSJ Index, which measures the dollar against a basket of currencies, was at 69.372 compared with 69.47 late Thursday in New York.

Spot silver $34.73/oz, up 7 cents from its previous close. It has gained 9.6% so far this month.

Spot platinum was at $1,661/oz, up $15, while palladium was at $635.30/oz, up $2.30.

Write to Arpan Mukherjee at arpan.mukherjee@wsj.com

Source: http://online.wsj.com/article/BT-CO-20120928-701263.html

WHOLESALE MARKET gold bullion prices dropped to $1757 an ounce Monday morning in London – 1.7% off a seven-month high hit briefly last Friday – as stocks, commodities and the Euro also ticked lower and US Treasuries gained amid signs of ongoing political stalemate in Europe.

Silver bullion dropped to $33.71 per ounce – 4% down from Friday's high.

Despite the falls, analysts continue to forecast higher prices for gold bullion, while dealers in India report increased physical demand toward the end of last week as local prices came down.

"[There is a] lack of obvious catalysts in the near term to take gold prices higher," says Deutsche Bank analyst Daniel Brebner.

"But I do think we will likely see over the next quarter or so greater policy action both in Europe and China to support growth within those regions...and that could keep the gold price moving higher. We think we will see $2000-plus gold prices in the first half of next year."

"I'm not worried at all about gold," says UBS analyst Dominic Schnider.

"Despite the short-term retracement, gold is still a buy."

"I think gold should be a portion of every one's portfolio to some degree because it diversifies the portfolio," hedge fund boss Ray Dalio, founder of Bridgewater Associates, told CNBC Friday.

"We have a situation now where we have too much debt, and too much debt leads to printing money...[gold] is the alternative to money."

The world's biggest gold ETF SPDR Gold Shares (GLD) saw its gold bullion holdings climb to 1317.8 tonnes Friday, their highest level since July 2010.

Silver bullion holdings backing world's largest silver ETF iShares Silver Trust (SLV) held steady at 9940.7 tonnes, an 11-month high.

The aggregate net long position of gold futures and options traders on New York's Comex continued to grow more bullish in the week to last Tuesday, weekly data published by the Commodity Futures Trading Commission show.

Palladium prices meantime fell by more than 3.5% this morning, dropping below $640 per ounce, after the world's largest nickel and palladium miner Norilisk said it plans to cut its investment by 10%, citing a weak outlook for the metal's price.

Eurozone leaders may allow the new permanent bailout, the European Stability Mechanism, to use leverage to increase its capacity to bail out struggling Euro members, German magazine Der Spiegel reported Sunday.

The ESM, which is expected to come into effect October 8 and will be capitalized with €500 billion, could be augmented with private sector investment to raise its capacity to €2 trillion, the report said.

"If Europe decided to leverage the ESM – and this discussion is going on – we would of course involve the German Bundestag," Steffen Kampeter, Germany's deputy finance minister, said Monday.

Last October, European leaders agreed to leverage the ESM's temporary predecessor, the European Financial Stability Facility, under arrangements that use EFSF money to absorb losses and give private sector investors partial loss protection.

France's President Hollande and Germany's Chancellor Merkel meantime failed to reach agreement on the timetable for creating a single European banking supervisor when they met over the weekend.

Hollande said he wants the idea implemented "the earlier the better", while Merkel said "it has to be thorough...and then we'll see how long it takes".

The creation of a single banking supervisor is a prerequisite before ESM money could loaned directly to banks, rather than channeled via governments and added to national debt burdens.

Elsewhere in Europe, Greece should be given more time to hit its deficit target, French prime minister Jean-Marc Ayrault said Sunday. Greece's budget deficit is double most estimates at €20 billion, according to Der Spiegel, which reports that Greek prime minister Samaras has asked some of the governments creditors to forgive some debt.

The Greek government failed to reach an agreement on spending cuts with the so-called troika of the European Commission, European Central Bank and International Monetary Fund last week, without which Greece will not receive its next tranche of aid. Troika officials are taking a one-week break from negotiations. Payment of the €31.5 billion tranche could now be delayed until November.

Gold buyers in India have benefited from a "golden era" for the metal over the last three years, while "investments in equities have not even given a simple bank interest rate equivalent", according to a study published by the Associated Chambers of Commerce and Industry of India.

"Net-net, gold has really outdone other asset classes and it is likely to remain an attractive bet as long as uncertainties over the global economy stays," says Assocham's secretary-general DS Rawat.

Jewelry dealers in Mumbai's Zaveri Bazaar meantime saw sales rise by around a fifth during Thursday and Friday trading, as Rupee gold prices fell, India's Business Standard reports.

"Buying interest is much higher than last week," added one Mumbai dealer speaking to newswire Reuters.

"[This is] mostly because the Rupee has appreciated substantially."

Ben Traynor

Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK's longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics. Ben writes and presents BullionVault's weekly gold market summary on YouTube and can be found on Google+

Source: http://news.goldseek.com/BullionVault/1348491720.php

Details of the MOU are summarized below.

1. Mistango provides the feed and UC and /or UC-R makes the feed processing

2. If it makes economically sense, UC will install in 2012 on its own costs a Concentrator Facility on Mistango's mining property with the purpose to concentrate the feeds before shipment to UC'S refinery. UC will extract all remaining heavy and noble metals +neutralize contaminated concentrates.

3. Mistango provides an exclusive feed recycling right to UC until the processing of the tailings is completed.

4. The two parties agree a profit (revenue minus processing costs) sharing.

5. UC is responsible for all permits and any new environmental liabilities that should occur because of UC's tailings recycling operation.

Below you will find UC's news release of September 17, 2012.

About Mistango

Mistango River Resources Inc. is a Canadian based exploration and development company holding several properties in Ontario and Quebec, including large land holdings in the Kirkland Lake region. Mistango specializes in precious metals and VMS hosted base metals, with recent projects centered on the Omega and Sackville properties in Ontario. Mistango brings a distinguished board and technical staff with expertise and many years in mineral exploration and mining fields. For additional information about Mistango and its mining properties, please visit Mistango's website www.mistangoriverresources.ca.

This news release contains certain "forward-looking information". All statements, other than statements of historical fact that address activities, events or developments that Mistango believes, expects or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of Mistango based on information currently available to Mistango. Forward-looking statements are subject to a number of significant risks and uncertainties and other factors that may cause the actual results of Mistango to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Mistango. Factors that would cause actual results or events to differ materially from current expectations include, but are not limited to, Mistango's decision to cancel its exploration program on its Omega gold property.

For further information please contact:

Mistango River Resources Inc.

Robert J. Kasner, President & CEODonald Kasner, Investor Relations

Telephone: 705-568-7540 Telephone: 705-570-1019

E-mail: bobkasner@yahoo.com E-mail : drkkasner@yahoo.ca

Website: www.mistangoriverresources.ca

Reto Hartmann

United Commmodity AG

Baliz 64, 3600 Thun, Switzerland

info@united-commodity.com

www.united-comodity.com

Tailing Recycling Cooperation between Mistango River and United Commodity

09/17/12 - Kirkland Lake/Cobalt - Canadian Mining Company Mistango River Recources Inc. and Swiss Based United Commodity AG announced today that they plan to work together in an unified effort to advance tailing recycling. The announcement reflects the companies' commitments to work together in environmentally responsible operations and responds to the increasing effort in economically and ecological tailing management.

Mistango will provide the tailing at its premises in Kirkland Lake together with an exclusive tailing recycling right to United Commodity and United Commodity is bringing in its unique United Commodity Tailing Recycling Process (UC-RPM(R)) at Mistango's mining property.

Both parties agreed on a profit sharing (revenue minus processing costs) sharing model.

<< For Mistango we see the benefit to get a cash compensation of our so far called <<non assets tailings>>. The compensation is linked to the gold price, the grade and the processed feed quantity>>, said Robert J. Kasner, Chairman & Chief Executive Officer of Mistango.

Reto Hartmann, Chairman and CEO of United Commodity said << United Commodity will get all extracted noble metals out of its UC-RPM(R) with which we are able to process up to 150 tons of feed (ore, tailings, concentrate, slag etc.) per day at Mistango and we will have a first operation in an environment which could contribute to the environmental recovery of contaminated tailings.>>

Both parties further agreed on an option to establish a longterm partnership to develop other UC-RPM(R)applications in the mining industry of Canada.

About Mistango River Resources

MISTANGO RIVER RESOURCES Inc. is a Kirkland Lake based resources Exploration Company focussing on increasing shareholder value by exploring and development of precious metals and VMS hosted base metals with precious metals content. The company holds several properties in Ontario and Quebec and is presently focussing on the Omega and Sackville properties in Ontario The company has large land holdings in the Kirkland Lake area. Mistango has a very experienced board and technical staff.

About United Commodity

United Commodity is a swiss based company specialized in extracting gold and other valuable raw materials through innovative and sustainable recycling technologies. United Commodity recently aquired a 51 per cent stake in Yukon Refinery in North Cobalt, Ontario. United Commodity AG is listed at Frankfurt, Germany Stock Exchange. (ISIN: CH0032868199, Symbol: 3UI1).

Contact:

Reto Hartmann

United Commodity AG

Balliz 64, 3600 Thun, Switzerland

info@united-commodity.com, www.united-commodity.com

Phone +41 (0) 44 533 10 30

Caution over how far the policy would prove effective and losses on the broader markets, kept a lid on gains, however. Top Fed policymakers disagree sharply over whether a third round of QE would work.

Chicago Fed President Charles Evans said the Fed's announcement last week that it would buy $40 billion worth of mortgage-backed securities each month for as long as it takes for the job market to improve will provide "important added stimulus" to jobs and shore up the economy.

But Dallas Fed President Richard Fisher, a forceful opponent of further easing, said he would have dissented last week if he had a vote on the policy-setting panel this year.

Spot gold was up 0.2 percent at $1,763.80 an ounce at 9:18 a.m. EDT (1318 GMT), having earlier dipped as low as $1,752.34 an ounce, while U.S. gold futures for December delivery were down $4.40 an ounce at $1,766.20, also well off lows.

Prices were knocked lower on Monday by a drop in crude oil, which remains under pressure.

"Judging by the broader commodity market, the QE3 euphoria is over for now," Andrey Kryuchenkov, an analyst at VTB Capital, said. "Yet bullion is still bullish in the long run, given debasing of major fiat currencies, liquidity boosts, etc. Inflation concerns will resurface."

The Fed decision, which may benefit gold by maintaining pressure on long-term interest rates, boosting liquidity and fanning inflation fears, sent spot prices to a peak of $1,777.51 an ounce last week.

They have since consolidated along with the broader financial markets, but in the longer term the news has raised the floor for gold prices, analysts said.

"The policy says that, even if we reach economic sustainability, central banks will keep interest rates low and monetary policy loose," LGT Capital Management analyst Bayram Dincer said.

"The forward-looking guidance of central banks is very favourable for real assets, because in that kind of scenario you have inflation-hedge and diversification benefits provided mainly by gold."

Caution reflected in ongoing weakness in other assets tempered gold's rise. European shares remained under pressure as investors cashed in gains from 14-month highs. .EU

The euro also stayed lower, succumbing to profit taking as investors turned their attention from central bank stimulus to slowing global growth and doubts about Spain's desire for an international aid package. <FRX/>

RESISTANCE SEEN AT 2012 HIGH

From a technical perspective, any fresh rise in gold prices is expected to run into resistance at this year's high of $1,790 an ounce, hit in late February, according to analysts who study past price moves for clues on the next direction of trade.

"We are happy to stay bullish gold," Barclays Capital said in a note. "Our upside targets are at $1,791 and then $1,803. We also expect silver to extend gains toward our initial target near $35."

Silver was down 0.5 percent at $34.37 an ounce, having tracked gold to a 6-1/2 month high at $34.92 last week.

Among platinum group metals, spot platinum was up 0.3 percent at $1,665.24 an ounce. The metal posted its biggest one-day drop since early April on Monday, down 2.3 percent.

Strikers at Lonmin's Marikana mine in South Africa have cut their basic wage demand to below 11,000 rand ($1,300) a month to try to end a six-week strike that halted platinum output at the world's third-largest producer, a negotiator said on Tuesday.

Violent unrest at the mine last month killed 45 people and stopped production, sparking a sharp rally in platinum prices.

"The psychology of the market seems to be shifting from concern that the strikes would spread and possibly shut down the bulk of South Africa's PGM production, to cautious optimism that the wave of industrial stoppages has crested and may be receding," HSBC said in a note.

"Since industrial demand is sluggish, a relaxation of supply concerns may take prices lower," it added. "The labor situation remains volatile, however, and renewed strife and fresh labor stoppages can occur at any time and drive prices higher. Based on this, we do not expect any further declines to be steep."

Spot palladium was up 0.8 percent at $678.97.

(Editing by Alison Birrane and David Cowell)

Source: http://ca.reuters.com/article/businessNews/idCABRE88G00B20120918?sp=true

LONDON (Reuters) - Gold held around seven-month highs on Monday, having posted a fourth successive weekly gain last week, after the Federal Reserve's pledge to keep interest rates low undermined the U.S. dollar and encouraged investor appetite for bullion.

Spot gold was steady on the day at $1,767.79 an ounce by 7:34 a.m. EDT (1134 GMT), having risen by nearly 2 percent last week in the longest stretch of weekly gains in more than a year.

The Fed said last week it would keep U.S. rates near zero until the middle of 2015, building on its existing vow to maintain them at this level until late 2014, triggering a 2-percent rise in the gold price in one day.

The central bank also committed to $40 billion in monthly purchases of mortgage-backed securities as long as job growth was sluggish to keep borrowing rates low for homebuyers and keep credit flowing through the financial system.

"The market has to consolidate the gains it has made since the end of August. That has been already a significant move upwards for the various precious metals, so if we do not see $1,800 (in gold) this week, that would not be a problem as, nevertheless, the signs are that precious metals prices are moving higher," Peter Fertig, a consultant for Quantitative Commodity Research, said.

The Fed has already spent nearly $3 trillion on combinations of Treasury and MBS purchases in the last four years.

In this time, the gold price has doubled in value as private buyers and central banks alike have sought alternatives to the U.S. dollar in which to invest.

Source: http://ca.reuters.com/article/businessNews/idCABRE88G00B20120917

The metal received a huge boost after the U.S. central bank tied its unconventional bond-buying directly to economic conditions, marking a significant shift in the direction of U.S. monetary policy.

Market watchers said the Fed was essentially shifting its focus to maximum employment at the expense of maintaining stable prices. The two objectives are often called the Fed’s dual mandate.

“They are emphasizing the growth mandate, and that means they don’t care about inflation other than giving lip service to it,” said Axel Merk, chief investment officer at Merk Funds, which has around $600 million in currency mutual-fund assets.

“The price of gold will do very well in the years to come,” Merk said.

Spot gold gained 2 per cent to $1,765.90 an ounce as of 1:19 p.m. (ET).

U.S. gold futures for December delivery rose $35.20 to $1,768.90 an ounce in heavy volume.

The metal also benefited after the Fed said it would not likely raise interest rates from current rock-bottom lows until at least mid-2015. Previously, it had set such guidance at late 2014.

Year-to-date, gold is up 13 per cent following a 10 percent rally since the start of August as central banks around the world appeared more determined to take up further stimulus to aid a frail global economy.

That is still below the 15 per cent gain seen early this year after the Fed said in January it would keep interest rates near zero through late 2014. Doubts about additional quantitative easing, or printing money to buy government bonds, had decreased bullion’s appeal as an inflation hedge.

However, doubts remain about the likely efficacy of such a move. Reuters data shows that asset performance tended to diminish with each new round of previous QE, and it sometimes takes as long as a year for the effects of Fed action to kick in.

Among other precious metals, silver was up 3.6 per cent at $34.46 an ounce. Spot platinum rose 2.8 per cent to $1,682.49 an ounce, while spot palladium climbed 2.9 percent to $690.20.

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Gold prices inched to an all-time high at just above $1,920 per ounce in September 2011 amid concerns about western economies. Since the beginning of the year, the US Dollar Index has strengthened, adversely impacting the prices in global markets.

Read Article In its entirety.

Thomson Reuters GFMS, which published its 'Gold Survey 2012 – Update 1' on Tuesday, forecasts that this will push Gold Prices back above $1800 for the first time since last November.

"We could see a drive to $1850-plus over the next couple of months," said Philip Klapwijk, global head of metals analytics at GFMS.

Klapwijk added that much of the drive for investing in gold is based upon the potential for further monetary stimulus measures from the Federal Reserve, including a possible third round of quantitative easing.

"QE3 has become talismanic now," he said.

"[But even] if one imagines that US monetary policy stays on hold, or there is just a change in rhetoric, that might itself be sufficient for investors to still come into the market."

GFMS forecasts that Gold Investment demand – which includes Gold Coins, bars and ETFS – will reach 973 tonnes in the second half of 2012. This compares to an estimated 960 tonnes over the same period last year, according to the latest World Gold Council figures.

In the six months to June, Gold Investment demand was an estimated 709.4 tonnes. GFMS's forecast suggests therefore that total investment demand to Buy Gold in 2012 will be just under 1700 tonnes, below the 2000 tonnes the consultancy predicted back in April.

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Goldbug, 05 Sep '12

Source: http://goldnews.bullionvault.com/gold-investment-090520125

Gold for December delivery was rising $5 to $1,662.10 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,663 and as low as $1,655.10 an ounce, while the spot price was dipping 80 cents, according to Kitco's gold index.

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Gold traders have waited most of this week and last week to see if the Fed would follow up its statement in last Wednesday's Federal Open Market Committee minutes -- that it would consider policy action in September -- with a fresh round of quantitative easing.

Silver prices for September delivery were gaining 19 cents to $30.56 an ounce, while the U.S. dollar index was sinking 0.54% to $81.28.

St. Louis Fed President James Bullard said Friday morning on Bloomberg Television that now may be the time to cut interest rates on reserves. Last week Bullard had downplayed the possibility of easing in the near term in an interview on CNBC. His comment appeared to conflict with the U.S. central bank's previous-day statement that it would consider options in September.

Meanwhile, a European Union official told reporters in Brussels on Friday that the European Central Bank "should be given full supervisory powers related to financial stability." In other words, the ECB would hold the sole power to grant bank licenses within the eurozone.

This move would allow the ECB easier navigation to offer direct bank bailouts from the currency area's firewall fun, according to Bloomberg.

Should Bernanke and central bankers pass the Jackson Hole opportunity to implement easing, the Fed will meet again later this month to issue another statement.

The ECB is expected to issue minutes next week of its most recent monetary policy meeting. It will be the eurozone central bank's first announcement in more than a month. Investors are awaiting some form of stimulus there as talks between Germany and Greece have shown improvement throughout the past month.

-- Written by Joe Deaux in Tampa, Fla.

Source: http://www.thestreet.com/story/11681712/1/gold-prices-rise-on-jackson-hole-optimism.html?cm_ven=GOOGLEN

Gold for December delivery was gaining $2.10 to $1,665.10 at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,666.70 and as low as $1,656.70 an ounce, while the spot price was up $6.40, according to Kitco's gold index.

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"Today's initial jobless figures of 374,000 is again bad news for the economy good news for gold in that immediate reaction of no changes in interest rates even if [Ben] Bernanke gives no hard news tomorrow keeps investors from selling," George Gero, precious metals strategist at RBC Wealth Management, wrote in a note on Thursday.

Silver prices for September delivery were down about 3 cents to $30.81 an ounce, while the U.S. dollar index was down 0.12% to $81.44.

Weekly initial jobless claims remained unchanged at 374,000 on Thursday morning, and maintained a prolonged weakness in labor markets. The Federal Reserve has repeatedly stated it would consider additional monetary action on the strength of the economy, including the forward-looking sentiment in the labor market.

Investors though, are waiting for central bankers to meet Friday for a summit in Jackson Hole. Though many analysts don't expect to see any Fed easing at this meeting, there is still a hope as it was at this meeting two years ago when Bernanke announced QE2.

Gold gains took a reprieve Wednesday after second-quarter GDP was revised up to 1.7% from 1.5%.

"The upward revision was to 1.7% ... And the markets took this as positive news, and decided that they didn't need Gold anymore," Chuck Butler, president of world markets at EverBank, wrote in a note on Thursday.

Gold mining stocks were slightly higher Thursday. Goldcorp(GG_) was gaining 0.68%, while Eldorado Gold(EGO_) was rising 0.86%.

Among other mining stocks, Barrick Gold(ABX_) was up 0.24%, while Yamana Gold(AUY_) was gaining 0.24%. Kinross Gold(KGC_) was gaining 0.35%.

-- Written by Joe Deaux in Tampa, Fla.

Source: http://www.thestreet.com/story/11680644/1/gold-prices-rise-on-flat-jobless-claims.html?cm_ven=GOOGLEN

The Fed, which has kept rates near zero since December 2008, has promised to keep them there until at least late 2014 to nurture a weak recovery, but previous rounds of asset purchases weakened the dollar, boosted global stock markets and burnished gold's safe-haven appeal.

Gold was steady at $1,667.40 per ounce by 0249 GMT, within sight of a 4-1/2 month high of $1,676.45 hit on Monday. A report showing US consumer confidence deteriorated in August to the lowest in nine months boosted gold.

"We see near-term risks of a reversal if Jackson Hole does not deliver what the market is hoping for and gold could challenge $1,650 support and possibly $1,630," said Nick Trevethan, senior metals strategist at ANZ in Singapore.

Bernanke is set to keep markets guessing about the timing of another round of bond purchases when he speaks on Friday in Jackson Hole, Wyoming, but he is likely to sustain expectations for action of some kind next month.

Silver, which often tracks gold, was hardly changed at $30.86 per ounce -- not far from Monday's three-month high.

"In the run up the weekend we do not expect either market to show any clear direction, with silver likely to trade between $30.00 and $31.40, and gold to move between $1,650 and $1,676," said Trevethan at the ANZ.

Gold rallied to the highest level in 2012 around $1,790 in February after the Fed at the time said it would keep interest rates near zero until at least the end of 2014. But prices have shed about 7 percent since then on no signs of further easing.

US gold futures for December delivery were also little changed at $1,670.10 per ounce.

The euro remained firm while Asian shares steadied as investors awaited Bernanke's Friday speech for signs of whether the bank would opt for more monetary stimulus and a European Central Bank policy meeting next week.

In the physical market, dealers expected buyers from India to buy on dips during the festival season. Retail gold demand traditionally gains pace from August, when the festival and wedding seasons start, culminating with Diwali, the Hindu festival of light.

"There's a bit of physical demand, but I think the market is flooded with gold bars. I've lowered my premiums to 30 to 50 cents from 50 to 70 cents last week," said a dealer in Singapore. "There had been some selling from Indonesia. We haven't seen much buying from India, but they are preparing for the high season. If prices go down they will take the opportunity to buy."

Holdings of the largest gold-backed exchange-traded-fund (ETF), New York's SPDR Gold Trust GLD, rose 0.23 percent on Tuesday from Monday, while that of the largest silver-backed ETF, New York's iShares Silver Trust SLV, fell 0.12 percent for the same period.

Source: http://www.brecorder.com/top-news/1-front-top-news/75926-gold-holds-near-4-12-month-high-focus-on-fed-.html

Bullion for immediate delivery may reach $1,800 an ounce by the year-end, extending gains this year to 15 percent, according to the median forecast in the Bloomberg survey of 15 traders and analysts at a conference in Hyderabad in South India on Aug. 25. That would be the most since a 30 percent surge in 2010, data compiled by Bloomberg show.

Gold is set for a 12th year of gains as the European sovereign-debt crisis boosts haven demand amid speculation of further policy easing by central banks, including the U.S. Federal Reserve, which may be considering a third round of so- called quantitative easing, or QE3. Investment holdings have expanded to a record on demand for a hedge against inflation.

“The euro zone has been quiet of late, but that doesn’t mean the problems have disappeared,” said Jeffrey Rhodes, global head of precious metals at INTL FCStone Inc. (INTL), who expects gold to rally to $1,975 by year-end. “The U.S. economy has been sluggish and there is a growing belief that there is going to be QE3 soon. This anticipation is driving the market.”

Fed Chairman Ben S. Bernanke said last week there’s “scope for further action” from the U.S. central bank. He is scheduled to speak later this week at the Fed’s annual symposium in Jackson Hole, Wyoming. China’s Premier Wen Jiabao has urged additional steps to support exports and help meet economic targets as evidence mounts the slowdown is deepening.

Europe Strains

Gold for immediate delivery rose as much as 0.4 percent to $1,676.90 an ounce today, the highest since April 13, and was little changed at $1,670.60 an ounce at 4:42 p.m. in Mumbai. Prices gained 3.4 percent last week, the most since the week ended Jan. 27. Spot gold reached a record $1,921.15 on Sept. 6.

“Europe’s financial situation is straining at the seams and with no fix forthcoming, demand for safe havens is likely to remain strong,” said Bimal Das, director at ScotiaMocatta, the metals trading unit of Bank of Nova Scotia.

The European leaders are preparing for a critical month in the three-year-old crisis that will involve the formulation of a European Central Bank bond-buying plan, a progress report by Greece’s international creditors and a looming German court decision on bailout funding on Sept. 12.

“More cash is coming into the market from investors,” said Philip Klapwijk, the global head of metals analytics at Thomson Reuters GFMS Ltd. “We expect there to be QE3 by September and gold will move substantially higher. The ETF demand has picked up and will continue to grow as prices rise.”

Soros, Paulson

Holdings in gold-backed exchange-traded products, or ETPs, rose 0.1 percent to 2,448.64 metric tons on Aug. 24, data tracked by Bloomberg show. Billionaire investors George Soros and John Paulson increased their stakes in the SPDR Gold Trust (GLD), the biggest gold-backed ETP, in the second quarter, U.S. Securities and Exchange Commission filings showed Aug. 14.

Central banks will purchase close to 500 tons this year after becoming net buyers in 2009, according to the producer- funded World Gold Council. Central banks added 254.2 tons to their holdings in the first half, according to the council, as countries from Russia to South Korea added to reserves.

“There is official interest in gold and central banks are buying, from Russia to Korea,” said Jeremy East, global head of metals trading at Standard Chartered Plc. “Central bank purchases are not driven by price but by asset allocation.”

Losing Steam

Gold may “lose steam quickly” if the market is disappointed by a lack of action to stimulate economies, Barclays Plc said in an e-mailed report today. “For gold to extend its gains, it needs to continue to draw wider investor support in light of the fragile physical market,” analysts including Suki Cooper said in the report.

Gold imports by India, the biggest buyer, may decline by 250 tons to 350 tons this year as record prices in rupees cut into demand, East said. Consumption rose to a record 963.1 tons last year, driving bullion imports to the highest ever at 958 tons, according to the gold council.

“The Indian currency has weakened and could weaken further, so demand may not come in,” East said. The Indian rupee declined to a record of 57.3275 per dollar on June 22, making imports costlier.

Bullion for October delivery gained as much as 0.5 percent to an all-time high of 31,091 rupees ($559) per 10 grams on the Multi Commodity Exchange of India Ltd. today. Prices have climbed 13 percent this year.

GFMS is owned by Thomson Reuters Corp. and Bloomberg competes with Thomson Reuters in selling financial and legal information and trading systems.

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

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

Source: http://www.bloomberg.com/news/2012-08-27/gold-set-for-best-year-since-2010-as-stimulus-bets-stoke-demand.html

Highlights of the drilling include:

-OM-12-92: 2.419 g/t Au over 19.5m

-OM-12-93: 1.494 g/t Au over 55m

These and other significant assay results are listed in the table below:

 -------------------------------------------------------------------
 |Hole #  |Section|     |From |To (m)|Interval|Au g/t|Zone|Remarks |
 |        |       |     |(m)  |      |(m)     |      |    |        |
 |-----------------------------------------------------------------|
 |OM-12-91|300W   |     |42.0 |43.0  |1.0     |1.53  |17  |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |And  |65.0 |66.0  |1.0     |0.85  |17  |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |And  |87.0 |90.0  |3.0     |0.743 |17  |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |And  |124.3|127.2 |2.9     |0.819 |17  |Open Pit|
 |-----------------------------------------------------------------|
 |OM-12-92|350W   |     |93.0 |112.5 |19.5    |2.419 |17  |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |Incl.|94.0 |99.0  |5.0     |5.78  |17  |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |Incl.|95.0 |96.0  |1.0     |14.80 |17  |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |Incl.|100.0|101.0 |1.0     |4.30  |17  |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |Incl.|110.0|111.0 |1.0     |5.97  |17  |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |And  |175.0|176.0 |1.0     |0.67  |17  |Open Pit|
 |-----------------------------------------------------------------|
 |OM-12-93|550W   |     |145.0|146.0 |1.0     |0.89  |17  |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |And  |154.0|209.0 |55.0    |1.494 |17  |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |Incl.|155.0|158.0 |3.0     |3.020 |    |        |
 |-----------------------------------------------------------------|
 |        |       |Incl.|164.0|165.0 |1.0     |6.97  |    |        |
 |-----------------------------------------------------------------|
 |        |       |Incl.|186.0|187.5 |1.5     |2.863 |    |        |
 |-----------------------------------------------------------------|
 |        |       |Incl.|201.0|202.0 |1.0     |11.87 |    |        |
 |-----------------------------------------------------------------|
 |        |       |Incl.|207.0|209.0 |2.0     |6.335 |    |        |
 |-----------------------------------------------------------------|
 |        |       |And  |237.0|238.0 |1.0     |2.30  |17  |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |And  |248.5|250.0 |1.5     |1.64  |17  |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |And  |281.5|298.0 |16.5    |1.146 |17  |Open Pit|
 |-----------------------------------------------------------------|
 |OM-12-94|650W   |     |28.0 |29.0  |1.0     |0.59  |    |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |And  |53.0 |66.0  |13.0    |0.921 |    |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |And  |112.0|113.5 |1.5     |5.060 |21  |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |And  |121.0|122.0 |1.0     |0.55  |21  |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |And  |210.3|212.3 |2.0     |3.156 |1-2 |Stope   |
 |        |       |     |     |      |        |      |    |void    |
 |        |       |     |     |      |        |      |    | between|
 |        |       |     |     |      |        |      |    |212.3   |
 |        |       |     |     |      |        |      |    |and     |
 |        |       |     |     |      |        |      |    |217m    |
 |-----------------------------------------------------------------|
 |        |       |And  |217.0|225.0 |8.0     |4.949 |1-2 |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |And  |244.0|245.5 |1.5     |0.943 |1-2 |Open Pit|
 |-----------------------------------------------------------------|
 |OM-12-95|650W   |     |76.5 |87.0  |10.5    |0.616 |1-2 |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |And  |96.0 |105.0 |9.0     |2.627 |1-2 |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |Incl.|97.0 |98.0  |1.0     |6.38  |    |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |Incl.|103.0|105.0 |2.0     |6.26  |    |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |And  |115.0|118.0 |3.0     |2.518 |1-2 |Open Pit|
 |-----------------------------------------------------------------|
 |OM-12-96|700W   |     |70.0 |72.5  |2.0     |2.166 |    |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |And  |104.5|118.0 |13.5    |1.132 |21  |Open Pit|
 |-----------------------------------------------------------------|
 |        |       |And  |169.0|170.0 |1.0     |1.27  |14  |Open Pit|
 -------------------------------------------------------------------

-Previously reported: all holes are uncut and over core length; core length is estimated 50-90% of true width; 1 g/t Au multiplied by 0.0291666 equals troy ounces per short ton (to convert from metres to feet multiply by 3.2808). NSV: no significant values. VG: visible gold.

QA/QC was followed in sampling the core. The core is sawed in half for sampling. Standards, blanks and duplicates were inserted into the stream of core samples every 20 metres. The core was assayed at Swastika Laboratories Ltd. at Swastika, ON using 30 gram samples. The core samples were analyzed using the fire assay method and AA finish.

Robert Kasner, President and CEO of Mistango comments: “We now have the sufficient drill hole spacing to commence the NI 43-101 resource estimate. The Company has added a second drill to complete additional deep holes on the down dip of the Omega gold zone and some on the Lake Zone. Concurrently with this, the smaller drill is at work on the Lake Zone with assays expected back in due course.”

Fred Sharpley, P.Geo. is the Qualified Person defined by NI 43-101 and has reviewed and approved the technical information presented in this news release.

About Mistango River Resources Inc.

Mistango River Resources is a Canadian based exploration and development company holding several properties in Ontario and Quebec, including large land holdings in the Kirkland Lake region. Mistango specializes in precious metals and VMS hosted base metals, with recent projects centered on the Omega and Sackville properties in Ontario. Mistango brings a distinguished board and technical staff with expertise and many years in mineral exploration and mining fields. For additional information about Mistango and its mining properties, please visit Mistango’s website www.mistangoriverresources.ca.

This news release contains certain “forward-looking information”. All statements, other than statements of historical fact that address activities, events or developments that Mistango believes, expects or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of Mistango based on information currently available to Mistango. Forward-looking statements are subject to a number of significant risks and uncertainties and other factors that may cause the actual results of Mistango to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Mistango. Factors that would cause actual results or events to differ materially from current expectations include, but are not limited to, Mistango’s decision to cancel its exploration program on its Omega gold property.

For further information please contact:

Mistango River Resources Inc. www.mistangoriverresources.ca

Robert J. Kasner, President & CEO Donald Kasner, Investor Relations Telephone: 705-568-7540 Telephone: 705-570-1019 E-mail: bobkasner@yahoo.com E-mail: drkkasner@yahoo.ca

CHF Investor Relations Stephanie Fitzgerald, Associate Account Manager Telephone: 416-868-1079 x222 E-mail: stephanie@chfir.com

The dollar fell versus the euro before Luxembourg Prime Minister Jean-Claude Juncker visits Greece tomorrow to discuss the country’s request for an extension to its fiscal adjustment program. Lonmin Plc said 33 percent of workers at the Marikana complex in South Africa, the biggest platinum producing country, returned to work today after clashes with police last week led to strikers’ deaths and boosted platinum prices.

“It is the slightly firmer euro against the dollar that is supporting” gold, Peter Fertig, the owner of Quantitative Commodity Research Ltd. in Hainburg, Germany, said today by phone. “Gold has also been profiting on speculation that there may be more monetary easing” from central banks, he said.

Gold for December delivery rose 0.4 percent to $1,628.80 an ounce by 8:05 a.m. on the Comex in New York. It reached $1,630.40 today, the highest since July 31. Immediate-delivery bullion was 0.3 percent higher at $1,625.23 in London.

Holdings in bullion-backed exchange-traded products fell 1 metric ton yesterday from a record to 2,432.3 tons, data compiled by Bloomberg show.

The Federal Reserve is due to publish tomorrow minutes of its two-day meeting that ended on Aug. 1. The central bank pledged then to ease policy further if necessary. Fed Chairman Ben S. Bernanke may talk about monetary options at a conference in Jackson Hole, Wyoming, at the end of the month.

Platinum for October delivery reached a nine-week high of $1,498.60 an ounce yesterday in New York after police shot dead 34 striking workers and injured 78 others at Lonmin’s Marikana platinum mining complex on Aug. 16. The metal was down 0.5 percent at $1,490.30 today.

Palladium for September delivery gained as much as 0.8 percent to $612.60 an ounce, the highest since June 21, and was last down 0.3 percent at $605.65. Silver for December delivery rose as much as 1.2 percent to a nine-week high of $29.025 an ounce, and was last at $28.96.

To contact the reporter for this story: Nicholas Larkin in London at nlarkin1@bloomberg.net

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

Source: http://www.bloomberg.com/news/2012-08-21/gold-set-to-gain-fifth-day-as-weaker-dollar-spurs-demand.html

Silver also hardened following consistent speculative demand on the back of good industrial buying.

Standard gold (99.5 purity) firmed up by Rs 115 to close at Rs 29,995 per 10 grams from last Saturday’s closing level of Rs 29,880.

Pure gold (99.9 purity) also went up by similar margin of Rs 115 to end at Rs 30,135 per 10 grams from Rs 30,020.

Silver ready (.999 fineness) rose by Rs 220 per kg to finish at Rs 54,360 from Rs 54,140 last weekend.

In Europe, gold gained in a range bound trade amid hopes of Central Bank intervention for ailing euro pressured the dollar and speculation that weak global growth would prompt further stimulus measures.

Spot gold was bid up at $1,624.10 an ounce in early trade, while silver was traded flat at $28.09 an ounce.

Source: http://www.thehindubusinessline.com/markets/gold/article3764114.ece

Mistango River Resources Announces More Results From Omega's Latest Drill Program In The Open Pit Area

Kirkland Lake, Ontario August 7, 2012 Mistango River Resources Inc. (“Mistango”)(CNSX : MIS, OTC : GLRAF) today announces the final ten drill hole results from the 11,515 m drill program at Omega. This completes the drill program at the open pit area of the Omega Project.

HIGHLIGHTS:

-OM-12-80 1.113 g/t Au over 15m and 16m of 0.959 g/t Au and 17m of 1.248 g/t Au

-OM-12-81 1.259 g/t Au over 10m and 12m of 3.808 g/t Au

-OM-12-84 1.060 g/t Au over 28m and 10m of 2.408 g/t Au

-OM-12-88 0.810 g/t Au over 44 m

These and other significant assay results are listed in the table below:

 ----------------------------------------------------------------------
 |Hole #  |Section|         |From  |To   |Interval|Au g/t|Zone|Remarks|
 |--------------------------------------------------------------------|
 |OM-12-80|550W   |         |72.0  |73.0 |1.0     |1.41  |17  |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |and      |77.0  |78.0 |1.0     |18.45 |17  |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |and      |81.0  |88.0 |7.0     |0.620 |    |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |and      |100.0 |115.0|15      |1.113 |    |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |and      |125.0 |141.0|16      |0.959 |    |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |including|125.0 |137.0|12      |1.42  |    |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |and      |228.0 |245.0|17      |1.248 |17  |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |OM-12-81|600W   |         |81.0  |91.0 |10.0    |1.259 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |and      |97.0  |101.0|4.0     |1.070 |1-2 |       |
 |--------------------------------------------------------------------|
 |        |       |and      |126.0 |138.0|12.0    |3.808 |    |       |
 |--------------------------------------------------------------------|
 |        |       |and      |224.0 |228.0|4.0     |1.550 |    |       |
 |--------------------------------------------------------------------|
 |OM-12-82|600W   |         |8.80  |18.0 |9.2     |1.070 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |including|8.80  |13.0 |4.2     |1.118 |    |       |
 |--------------------------------------------------------------------|
 |        |       |including|17.0  |18.0 |1.0     |4.74  |    |       |
 |--------------------------------------------------------------------|
 |        |       |and      |153.3 |154.6|1.3     |1.08  |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |and      |165.5 |170.0|4.5     |1.883 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |OM-12-83|650W   |         |189   |192  |3.0     |3.433 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |OM-12-84|700W   |         |      |149.0|2       |1.975 |1-2 |Open   |
 |        |       |         | 147.0|     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |and      |164.0 |192.0|28      |1.060 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |Including|164.0 |165.0|1       |1.57  |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |Including|177.0 |187.0|10      |2.408 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |OM-12-85|700W   |         |10.0  |20.2 |10.2    |0.553 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit;   |
 |        |       |         |      |     |        |      |    |DDH    |
 |        |       |         |      |     |        |      |    |hit    |
 |        |       |         |      |     |        |      |    |stope  |
 |        |       |         |      |     |        |      |    |void   |
 |--------------------------------------------------------------------|
 |        |       |and      |52.0  |58.0 |6       |0.992 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |and      |194.0 |200.2|6.2     |1.388 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |and      |203.0 |207.0|4       |2.660 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |and      |230.0 |230.6|0.6     |1.39  |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |and      |239.0 |245.0|6       |1.273 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |OM-12-86|750W   |         |145.0 |146.2|1.2     |0.57  |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit;   |
 |        |       |         |      |     |        |      |    |DDH    |
 |        |       |         |      |     |        |      |    |hit    |
 |        |       |         |      |     |        |      |    |stope  |
 |        |       |         |      |     |        |      |    |void   |
 |--------------------------------------------------------------------|
 |        |       |and      |149.0 |152.0|3.0     |4.133 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |and      |155.4 |157.0|1.6     |0.984 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |         |174.0 |177.0|3       |3.013 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |OM-12-87|750W   |         |205.0 |216.0|11      |1.098 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit;   |
 |        |       |         |      |     |        |      |    |DDH    |
 |        |       |         |      |     |        |      |    |hit    |
 |        |       |         |      |     |        |      |    |stope  |
 |        |       |         |      |     |        |      |    |void   |
 |--------------------------------------------------------------------|
 |OM-12-88|750W   |         |75.2  |119.2|44.0    |0.810 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |Including|75.2  |80.0 |4.8     |2.256 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |including|93.0  |97.0 |4.0     |1.038 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |including|109.0 |119.2|10.2    |1.145 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |And      |142.0 |146.0|4.0     |0.701 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |including|142.0 |143.0|1.0     |1.41  |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |including|145.5 |146.0|0.5     |1.17  |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |And      |258.0 |259.0|1.0     |0.88  |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |OM-12-89|700W   |         |      |     |        |      |    |NSV;   |
 |        |       |         |      |     |        |      |    |hit    |
 |        |       |         |      |     |        |      |    |stope  |
 |        |       |         |      |     |        |      |    |void   |
 |        |       |         |      |     |        |      |    |hole   |
 |        |       |         |      |     |        |      |    |stopped|
 |--------------------------------------------------------------------|
 |OM-12-90|800W   |         |40.0  |41.0 |1.0     |0.91  |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |And      |51.0  |52.0 |1.0     |0.52  |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |and      |58.0  |59.0 |1.0     |0.95  |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |and      |93.0  |100.0|7.0     |0.853 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |including|98.0  |99.0 |1.0     |3.14  |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 |--------------------------------------------------------------------|
 |        |       |and      |220.0 |224.0|4.0     |2.008 |1-2 |Open   |
 |        |       |         |      |     |        |      |    |Pit    |
 ----------------------------------------------------------------------

*previously reported: all holes are uncut and over core length; core length is estimated 50-90% of true width; 1 g/t Au multiplied by 0.0291666 equals troy ounces per short ton (to convert from metres to feet multiply by 3.2808). NSV: no significant values. VG: visible gold.

QA/QC was followed in sampling the core. The core is sawed in half for sampling. Standards, blanks and duplicates were inserted into the stream of core samples every 20 metres. The core was assayed at Swastika Laboratories Ltd. at Swastika, ON using 30 gram samples. The core samples were analyzed using the fire assay method and AA finish.

Bob Kasner, President and CEO of Mistango comments: “We have now completed and received the final results of the latest drill campaign. I am very pleased with the results of the shallow drilling in the potential open pit area. We have now started a new drill program to fill in areas of the potential open pit. Approximately 3,000 m over ten holes will be completed prior to commencing a NI 43-101 resource report. A second drill will start in two weeks which will drill deeper holes while the smaller drill will be moved to the Lake Zone. The Lake Zone shows great potential from historic drilling, recent geophysics and soil sampling. The Lake Zone appears to be a NE/SW splay fault in contact with Ultra Mafic rocks and we expect positive assays back around September.”

Mistango has retained the services of AMC Consultants to complete the NI 43-101 resource at the Omega Mine site.

Fred Sharpley, P.Geo. is the Qualified Person defined by NI 43-101 and has reviewed and approved the technical information presented in this news release.

About Mistango

Mistango River Resources Inc. is a Canadian based exploration and development company holding several properties in Ontario and Quebec, including large land holdings in the Kirkland Lake region. Mistango specializes in precious metals and VMS hosted base metals, with recent projects centered on the Omega and Sackville properties in Ontario. Mistango brings a distinguished board and technical staff with expertise and many years in mineral exploration and mining fields. For additional information about Mistango and its mining properties, please visit Mistango’s website www.mistangoriverresources.ca.

This news release contains certain “forward-looking information”. All statements, other than statements of historical fact that address activities, events or developments that Mistango believes, expects or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of Mistango based on information currently available to Mistango. Forward-looking statements are subject to a number of significant risks and uncertainties and other factors that may cause the actual results of Mistango to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Mistango. Factors that would cause actual results or events to differ materially from current expectations include, but are not limited to, Mistango’s decision to cancel its exploration program on its Omega gold property.

For further information please contact:

Mistango River Resources Inc. CHF Investor Relations

Robert J. Kasner, President & CEO Stephanie Fitzgerald

Telephone: 705-568-7540 Telephone: 416-868-1079 x222

E-mail: bobkasner@yahoo.com E-mail: stephanie@chfir.com

Donald Kasner, Investor Relations

Telephone: 705-570-1019

E-mail: drkkasner@yahoo.ca

Website: www.mistangoriverresources.ca

Gold is poised to get a boost from surging corn and soybean prices, as investors look to the metal as a hedge against the growing risk of global inflation.

Gold has floundered in recent months, held back by lackluster physical and investor demand. In New York on Thursday, gold closed at $1,587.40 a troy ounce, up 1.4% since the start of the year.

Should an increase in global inflation raise the appeal of traditional stores of value, gold's fortunes could change.

"Rising food prices are relevant for gold to the extent that it feeds into [the Consumer Price Index], particularly in countries that have an affiliation with gold," like China and India, UBS analyst Edel Tully said.

Gold, which tends to maintain its value better than other assets at times of market volatility, is often sought as a store of value in inflationary environments.

"Should food inflation lead to physical gold purchases in emerging markets [that] would give investors in the West much more comfort to step back into gold again," Ms. Tully said.

The risk of a wave of global food price inflation is growing fast, as U.S. grain and soybean prices trade close to all-time highs amid the worst drought in more than half a century.

Chicago Board of Trade soybeans for August delivery settled at $16.53 a bushel Thursday, down 1.7%, but up 3.5% from the beginning of the year. September corn futures settled at $7.94 a bushel, down 0.8% on the day but up 2.9% year to date. On July 20, soybean and corn futures hit record highs of $17.77 a bushel and $8.28¾ a bushel, respectively.

The Food and Agriculture Organization, the United Nations' food relief agency, warns that its food-price index for July, which is scheduled to be released next Thursday, is likely to show a rebound from three consecutive months of declines.

The agency said commodity prices have started rising again, mainly because of weaker crop prospects for corn and soybeans in the U.S. Midwest. It has even decided to publish its food-price index in August, when traditionally there is an annual break, because of sharp price increases in grain and oilseed. Once this data is released, the effect of rallying corn and soybean prices will be more clear.

Food inflation is particularly acute in emerging economies, where consumers spend a significantly higher percentage of their incomes on food than in developed nations.

According to UBS, food represents 30% of China's CPI reading and 50% of India's. Those countries are the world's top gold consumers, accounting for 42% of global demand in 2011, the World Gold Council says.

"In 2009 and 2010, both China and India suffered from this kind of high inflation, and it did feed into higher demand for gold in both cases," notes BNP Paribas analyst Anne-Laure Tremblay.

High food prices can also lead to social unrest, heightening gold's appeal as a hedge against instability, HSBC analyst James Steel said. "Sharp increases in food prices have historically introduced elements of geopolitical risks, which have been positive for gold." He said that prices of commodities such as corn and soybeans recently topped levels seen during global food riots in 2007-2008 and the Tunisia riots in early 2011.

In China, jitters over rising food prices are evident. Producers of cooking oil, a bellwether of food prices, said last week the government advised them to avoid raising prices "unless absolutely necessary." The move suggests that the government is wary of surging prices after a rally in U.S. grain drove up the price of Chinese soybeans. Last year, 42% of China's soybean imports came from the U.S. and this year that figure is up to 58%, UBS said.

Determining the impact of food-price inflation on Indian gold demand poses problems, since rural India, with two-thirds of the country's gold jewelry purchases, is facing a slow-starting monsoon season.

"A disappointing monsoon season, coupled with rising food prices, would weigh on farmers' incomes and in turn dent gold purchases from rural areas," said Ms. Tully. "At the same time, higher inflation could encourage buying in nonrural areas or by the more well-off segments of the rural community. The net impact is therefore less straightforward in India than in China."

—Michael Haddon, Chuin-Wei Yap and Chun Han Wong contributed to this article.

Source: http://online.wsj.com/article/SB10000872396390443866404577564362406672118.html

Ore characterization was conducted on a 17 kilogram sample taken from drill core, showing a composite head grade of 3.58 g/t gold. Gravity, whole ore leach, and flotation tests were compared with gravity-flotation. Gravity recoveries were about 3%, whole ore leach up to 86% and the gravity flotation test indicated overall 99% recovery. All three gravity flotation tests demonstrated that results were not influenced much by grind size.

Commenting on the tests, Robert Kasner, President and CEO stated, "These are excellent recovery results. The implications of having to only leach the flotation concentrate will greatly reduce overall milling costs and will also give us the option to potentially ship the concentrate to another mill or a smelter if desirable."

The 100% owned Omega Mine Property is located at Larder Lake, Ontario. The present drill program consists of 24 holes, approximately 11,515 metres, designed to complete the recommended infilling drilling around the potential open pit area so that a NI 43-101 resource estimate can proceed as well as the drilling of the down-plunge extensions of the Omega deposit and the Lake zone where two shafts are already in existence.

Dan Mackie, P.Eng. is the Qualified Person defined by NI 43-101 and has reviewed and approved the technical information presented in this news release.

About Mistango River Resources Inc.

Mistango River Resources is a Canadian based exploration and development company holding several properties in Ontario and Quebec, including large land holdings in the Kirkland Lake region. Mistango specializes in precious metals and VMS hosted base metals, with recent projects centered on the Omega and Sackville properties in Ontario. Mistango brings a distinguished board and technical staff with expertise and many years in mineral exploration and mining fields. For additional information about Mistango and its mining properties, please visit Mistango's website www.mistangoriverresources.ca.

This news release contains certain "forward-looking information". All statements, other than statements of historical fact that address activities, events or developments that Mistango believes, expects or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of Mistango based on information currently available to Mistango. Forward-looking statements are subject to a number of significant risks and uncertainties and other factors that may cause the actual results of Mistango to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Mistango. Factors that would cause actual results or events to differ materially from current expectations include, but are not limited to, Mistango's decision to cancel its exploration program on its Omega gold property.

For further information please contact:

Mistango River Resources Inc. CHF Investor Relations

Robert J. Kasner, President & CEO Stephanie Fitzgerald

Telephone: 705-568-7540 Telephone: 416-868-1079 x222

E-mail: bobkasner@yahoo.com E-mail: stephanie@chfir.com

Donald Kasner, Investor Relations

Telephone: 705-570-1019

E-mail: drkkasner@yahoo.ca

Copyright (c) 2012 Thenewswire.ca - All rights reserved.

A shop assistant arranges a display showing gold jewelry in a store in Huaibei, Anhui province. Last year, about 496 metric tons of gold were used in the production of jewelry for the Chinese market.[Photo / China Daily]

Globally, the private sector's demand for gold is weakening.

But it remains strong in China, helping to fuel expectation that the price of the metal will be above $1,800 an ounce before the end of this year, experts said on Tuesday.

Because gold prices remain high and concerns have arisen about fluctuations in the metal's price in the short term, the global private sector has been purchasing less of it, said Philip Klapwijk, global head of metals analytics of Thomson Reuters GFMS.

"But the Chinese market remains strong, which makes it an important factor global investors have to focus on."

Last year, China's demand for bullion for investment purposes was strong enough to lead to the sale of 250 metric tons of the metal, an increase of 40 percent. In India, even more gold bars were sold, 288 tons worth.

In the same year, 496 tons of gold were sold in China for use in making jewelry. In India, though, the amount sold for that purpose decreased by 3 percent year-on-year.

"The Chinese demand for jewelry will be similar to that of India in 2012, while China will have more gold bars than India this year," Klapwijk said. "So China is expected to be the world's largest market for gold consumption by the end of the year."

Globally, the amount of gold bought for investment purposes decreased 10 percent year-on-year in 2011, falling to 1,605 tons. Even so, that went for a record high of $81 billion.

Low interest rates, the worsening debt crisis in Europe and concerns about inflation were the main reasons cited for the increase in the value of gold.

Also last year, 2,759 tons of the metal were sold globally for use in manufacturing. That was down 0.9 percent year-on-year, a result largely of a decline in the demand for jewelry.

Klapwijk speculated that central governments are also buying more gold, saying such official buying becomes more influential when the private sector is weak.

A report Klapwijk released on Tuesday said that a modest increase in mine production and a higher supply of scrap gold have led to a record supply of the metal in 2012.

Meanwhile, demand for manufacturing purposes, which mostly comes from jewelry makers, is forecast to fall by a small amount this year.

The report said external economic and financial conditions in the coming months are predicted to attract more money into the gold market. One reason investors are expected to take a greater interest in gold is the likelihood that more countries will ease their monetary policies in the near future.

Klapwijk said the gold market will continue to fluctuate in the very short term, although the price of the metal should remain around $1,500 a troy ounce.

"We would not be surprised if heightened volatility was to continue, in part as investors' interpretation of the impact of macroeconomic news on gold seems to be increasingly variable," he said. "Despite this noise, and the stagnation in the price that we have seen over much of the year-to-date, we believe the gold bull market remains intact.

"Indeed, as we move into the fourth quarter, a clearer uptrend should establish itself, with gold easily breaching the $1,800 mark before year end. A new high for the price does, however, seem to have been postponed until the first half of 2013."

At $1,586.30 a troy ounce, the price of spot gold was little changed at 2:03 pm on Tuesday in Singapore, down from a record of $1,921.15 in September. The price of the metal has increased for 11 straight years, Bloomberg reported.

caixiao@chinadaily.com.cn