GOLD

Mongolia's law banning mining in the country's river and forest areas is necessary to protect the mineral-rich Asian country's environment and herdsmen's livelihoods, President Tsakhia Elbegdorj said on Monday.

Gold lost its appeal as a safe haven on Monday, falling over 2 percent as fears of a Greek debt default and larger euro zone problems drove investors into bonds and the dollar.

Canada-based gold miner Semafo Inc. said on Monday it halted operations at its Kiniero gold processing plant in Guinea and evacuated its expatriate workers after a violent protests by locals over jobs.

Vancouver-based Ely Gold & Minerals said Monday it has achieved significant progress in boosting production from its Mt. Hamilton gold-silver project located at the southern end of Nevada's prolific Battle Mountain gold trend.

Gold prices fell Monday as investors looking to diversify their safe-haven investments moved heavily into the U.S. dollar and out of precious metals.

President Hugo Chavez's government formalized the nationalization of Venezuela's gold industry on Monday with a decree that prohibits exports of the metal and gives the state 55 percent of joint ventures.

A group of short-sellers, who earlier this month accused miner Silvercorp Metals of fraud, outlined new allegations against the company on Monday.

Newmont Mining Corp., which initially announced a link between its dividend and the price of gold, said Monday its annual dividend could rise to $4.70 if gold hits $2,500.

With gold and silver prices down Monday and the bulk of safe-haven investors opting for U.S. Treasuries instead of precious metals, shares of companies that mine for gold and silver were nearly all down along with the broader stock market.

Gold fell Monday in midday trading as investors decided to diversify their safe-haven opportunities by increasing their holdings of U.S. Treasuries, the dollar and the Japanese yen, said George Cocalis, senior market strategist for PFGBEST.

Workers at Peru's Cerro Verde mine, which yields 2 percent of the world's copper, agreed to end an indefinite strike they began last week, but may down tools again on Sept. 27, a union leader said Monday.

For the first time since 1985, European central banks have become net buyers of gold, according to data from the World Gold Council.

Polyus Gold, Russia's top gold producer, reported a first half net profit of $206.8 million in the first half of 2011, nearly double year-on-year, due to a rise in the price and demand for the precious metal.

Newmont Mining Corp. plans to boost its dividend payments to shareholders, should gold prices remain above $1,700 an ounce, the company said on Monday.

Canada's Aurizon Mines said it has found two new high-grade gold zones at its Marban Block property in the Abitibi region of Quebec.

Rui Feng, the chief executive of embattled miner Silvercorp , has boosted his stake in the company further, according to regulatory filings that indicate his vote of confidence in his own firm.

Gold prices held steady Monday, as concerns about Europe's sovereign debt crisis, its weak financial sector and divisions among leaders about how to solve the crises drove investors into safe-haven securities like the U.S. dollar.

India and China drove the second-quarter's robust demand for gold, the World Gold Council said in its analysis of industry trends during the three-month period.

Gold prices rallied on Monday after European policy makers failed to soothe fears of Greek default and contagion to other euro zone countries, prompting investors to seek refuge in the precious metal.

Canadian gold miner Agnico-Eagle Mines said it will buy Mexico-focused junior peer Grayd Resource Corp for about C$275 million($279.6 million) in cash and stock to focus on early stage gold projects.

More than a thousand workers have returned to Freeport McMoRan Copper & Gold's strike-hit Indonesia mine, the company said on Monday, leading the union to say some production has restarted at the world's third-biggest copper mine.

The London Bullion Market Association is working out ways for refiners on its Good Delivery List to avoid falling foul of new regulations against conflict gold as a number one priority, LBMA chairman David Gornall told Reuters on Sunday.

Foreign investors in mineral-rich Mongolia hope parliament will revoke a controversial law banning mining in the country's river and forest areas when it convenes for its busy autumn session next month.

Gold rallied 1 percent on Friday in volatile trade, as the safe-haven bid for precious metals returned when a survey showed U.S. consumers gloomy about the economic outlook.

A drive by Peru's leftist president to raise mining royalties should not derail multibillion-dollar investments, industry executives said, but they added that the final law must reflect the spirit of negotiations with companies.

Gold miner Mwana Africa's Zimbabwe mine output has risen to a monthly average of 4,500 ounces, outstripping its targeted annual production rate, company executives said on Friday.

Gold and other precious metals jumped Friday on bargain hunting and a loss of faith that global central bankers will be able to contain Europe's sovereign debt crisis to Greece.

The European Union will decide in the coming months whether to start stockpiling raw materials that are critical for the bloc's industrial and high-tech production, an EU spokesman said on Friday.

Silver and platinum may lag other precious metals in the coming months, according to analysts studying both their price movements and the broader economy.