Africa's second-largest generator of gold announced it will increase production of the yellow metal this year.
Bloomberg reports Gold Fields of South Africa expects to produce 5.7 percent more gold this than it did for fiscal 2010, which ended in June. The company plans to generate as many as 3.7 million attributable equivalent ounces through the end of 2011 as compared to 3.5 million for fiscal year 2010.
"A potentially large gold prospect has been defined," according to the Johannesburg-based company. The increased production will be driven by the project known as "Incredible" in St. Ives of Western Australia.
Just after 9:15 a.m. on Friday, gold futures were up 0.08 percent, a $1.10 cent rise to $1,386.20 per troy ounce.
Gold's value will reach $1,500 per troy ounce in 2011, according to the prediction of AngloGold Ashanti, the African continent's largest gold producer.
Now coming off its 10th straight year of annual gains, gold notched its top value in five weeks on Thursday. The precious metal record high is $1,431.25 per troy ounce, which it notched on December 7, 2010.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.