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Thursday, April 24, 2008

Gold Mining Company Shares Down on Dollar Rally


Shares in gold mining companies plummeted as the U.S. dollar strengthened against the euro, and the yellow metal fell in price.

Also affected by the strengthening U.S. dollar was gold futures, which plunged by $20.30 to finish at $888.70 for the June contract on the Nymex. It fell as low as $884.50 before it rebounded. Still it's the lowest price since January 10, 2008. Gold has fallen by 8 percent since its high of $1,038.60.

Some gold company results today:


Gold Fields Ltd. (nyse:GFI) dropped 35 cents, or 2.5 percent, to $13.71.

Newmont Mining Corp. (nyse:NEM) finished down by 85 cents at $43.

Goldcorp Inc. (nyse:GG) declined by $2.14, or 5.6 percent, to $36.30.

Barrick Gold Corp. (nyse:ABX) lost $1.57, or 3.9 percent, to $39.23.

Friday, April 18, 2008

Gold Plunges to Two-Week Low on Strengthening U.S. Dollar

Prices for gold fell to their lowest level in two weeks, as the U.S. dollar made gainst against the euro.

June delivery for gold fell $27.70 to rest at $915.20 an ounce on the Nymex, after dropping as low as $907.30.

On Wednesday gold had surged to $948 an ounce, making investors look for the $1,000 an ounce the yellow metal first reached in March.

Gold was "heavily weighed down by an initial retreat in crude oil and the dollar's rapid ascent," Jon Nadler, analyst with Kitco Bullion Dealers Montreal, said in a note.

Many investors believe gold will reach $1,000 an ounce again by the end of 2008.

Tuesday, April 15, 2008

Gold Rises on Oil Price Increase and Inflation Concerns


Gold went as high as $936.50 an ounce today before settling at $926.60/928.40 on the last quote in New York. That's a slight increase over Monday's close of $935.30/926.10.

Record-breaking oil prices continue to hold the gold market up, even as other economic data put downward pressure on the metal. Oil closed at $113.79 a barrel, up by $2.03.

Even so, there was some sell-off as prices for U.S. producers was better than expected. That makes it more possible the Fed won't cut interest rates at their next meeting.

"Oil is clearly a factor. Technically also, gold looks better because it broke through a weak trend line resistance," said Michael Jansen, analyst at J.P. Morgan Securities.

"But I think we will continue to consolidate. The recovery from under $900 is not hugely convincing and there are still concerns that the physical market is very subdued. Overall, we will tend to trade in the $900-$950 range for a bit longer."

With the India wedding season in full swing, physical demand for gold remains fairly strong, although high prices have kept other parts of Asia from buying.

Gold futures in the U.S. ended at $932 an ounce for June delivery, up by $3.30.

Friday, April 11, 2008

Gold News Weekend Roundup

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Gold weakens as market cautious before weekend

Gold drifted lower on Friday in a cautious trading tone in spite of a decline in the dollar, and analysts said the market was likely to continue moving in a range in the near term.

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Gold futures end lower, but post a weekly gain

Gold for June delivery fell $4.80 to end at $927 an ounce on the New York Mercantile Exchange. However, gold posted a gain of $13.80 on the week from last Friday's closing level of $913.20 an ounce.

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Opening Glance: Gold Miners Fall

Shares of gold-mining companies fell Friday shortly after the opening bell as the U.S. dollar rallied against key rivals and the price of the commodity fell.

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CCM Research Issues Technical Research Report on Yukon Gold Corp.

Research Chief Technical Analyst, Jason Suttmeier, has written a technical research report on Yukon Gold Corp.

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Gold Hawk Resources Appoints New Chief Financial Officer

Gold Hawk Resources Inc. (TSX:CGK) advises today that Mr. Omar Salas, CMA, will join the company as our new Chief Financial Officer and Vice President Finance, effective May 1, 2008.

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Junior gold miners begin to outpace majors as gold prices remain steady

Gold prices remained steady near the close of the week's session as major gold mining stocks appear to have peaked. But that's not the case with the junior gold mining companies who've yet to catch up to the market.

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Thursday, April 10, 2008

After 10-Day High, Gold May Take a Breather

June deliver for gold dropped $5.70, to finish the session at $931.80 an ounce on the NYMEX.

The dollar hitting an all-time low against the euro, and weak against many currencies recently, it really had nowhere to go but up, and that's what it did, causing some pressure on gold, as investors took some profits on the yellow metal.

Some felt this is a signal to get ready to buy gold again, as it is thought the market remains "strongly biased to the upside at this point," said Zachary Oxman, senior trader at Wisdom Financial. "I'd treat this dip as another proxy to buy as the market breaks up to $960.”

With OPEC also continuing to hold to their belief that there is plenty of oil on the market, it could affect gold as well, as Mark O'Byrne, executive director at Gold & Silver Investments Ltd. said, "With oil reaching new record highs, there is likely to be inflation-hedging gold buying."

The European economy could become a factor in pressuring gold prices as well, with some saying “If the ECB succumbs to pressure and starts to slash rates because of slower growth, the dollar may be able to make up some ground, which is going to make gold's life a little more difficult,” said Matt Zeman, a metals trader at LaSalle Futures Group Inc.

Monday, April 7, 2008

Sharia Law Now Governing New Gold Security


The announcement that Dubai Multi Commodities Centre and the World Gold Council have created a new company to launch an ETF gold security that will comply to Sharia law is fascinating, in that many people in the United States, for non-Sharia reasons, have looked to do similar things. I'm referring to the shares being backed by physical gold.

The fund, named Dubai Gold Shares, will trade on the Dubai International Financial Exchange once approval is garnered from the Dubai Financial Services Authority.

The World Gold Council is an industry body that is funded by the top gold mining companies in the world. The WGC, along with the DMCC didn't reveal their stake in the joint venture.

As far as the gold bars backing the shares go, they will be of Dubai and London Good Delivery Standard, and will be placed in the vaults of DMCC, and a sub-custodian, HSBC.

Dubai Gold Shares will be denominated in U.S. dollars.

Friday, April 4, 2008

Keeping up with Gold News: Weekend Roundup

Gold rises on U.S. job losses, recession fears

Gold gained in choppy trade on Friday as an oil rally and weaker-than-expected U.S. jobs data pushed the dollar down and lifted gold's appeal as an alternative investment.

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Gold rally intact, despite recent sell-off

A brutal sell-off in gold from record highs above $1,000 an ounce last month has failed to deter market bulls who believe turbulence in financial markets will keep attention firmly on bullion this year.

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Burglars target British Indians for gold

London: The soaring price of gold has caused a sudden spurt in crime in a London suburb with a large population of Indians - a community known to stash away gold jewellery at home.

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Gold rises on weaker-than-expected U.S. jobs data

Gold gained in choppy trade on Friday as weaker-than-expected U.S. jobs data pushed the dollar down and lifted gold's appeal as an alternative investment.

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AngloGold revises up March gold output

ANGLOGOLD Ashanti forecasts first quarter production of 1.19 million oz, which is eight percent higher than it told the market in February. The increase comes from better-than-expected performance in the South African power crisis, the company said on Friday.

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Vishnu Pillay to Head up Gold Fields Operations in South Africa

Gold Fields Limited ("Gold Fields") (NYSE:GFI) today announced that, further to the executive management changes announced on Monday, 30 March 2008, Vishnu Pillay has been promoted to Executive Vice President and Head of South African Operations, to replace Terence Goodlace who was promoted to Chief Operating Officer for the Group, and will join the Gold Fields Executive Committee.

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Gold Market Wrong-Footed in Thin Trade by Shock Fall in US Payrolls

Gold Prices dipped, bounced and then fell back again from a four-day high early Friday on news that US job losses exceeded expectations last month.

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Thursday, April 3, 2008

Gold Edges Up on Platinum Rally, Dollar Drop

The price of gold edged up today, based on a platinum surge and a slight drop in the U.S. dollar.

"I think it (gold's surge) has a lot to do with platinum actually. We have resurging worries about electricity supply after yesterday's discussion by Eskom. Clearly, the situation remains problematic," said James Steel, metals analyst with HSBC in New York.

"In addition to that, the dollar dropped a little today, and the fact that all commodities are up have driven the gold higher."

Friday's U.S. jobs report will determine which way gold will go in the short term, although I think what the Fed decides at the end of the month concerning interest rates will be a much larger factor over the next couple months.

As of 2:15 p.m. EDT, spot gold was at $903.40/904.20, an increase from New York's late Wednesday price of $898.00/898.70.

June delivery for June gold ended the session up by $9.40, finishing a $909.60 an ounce on the COMEX.

While some still believe there may be some downside to gold, in the long term most are still pretty bullish on the gold metal.

Wednesday, April 2, 2008

Gold Rises by One Percent after Hitting Two-Month Low


Even though gold fell to as low as $872.90 on Tuesday, it was able to rally some and reach as high $894, up from $884.20/885.40 an ounce late in New York, before settling at $891.50/892.40.

The 3 percent drop on Tuesday continued the plunge in gold prices since the high of $1,030.80 it reached in March.

In the short term, analysts think investors will hold back and wait to hear the upcoming release of data on U.S payrolls on Friday.

"We are trying to recover some ground and may succeed depending on the data releases in the U.S., but that could be temporary respite," said Tom Kendall, metals strategist at Mitsubishi Corporation.

"It's too early to be wholly convinced that the time is right to go long again for strategic investors. The market needs to steady for a while and it's possible that we will set up a range here between $875 to $900 for a week or two."

Tuesday, April 1, 2008

Gold Falls Below $880 for First Time in 2 Months

The correction in the gold market continues, as the ongoing rise of the U.S. dollar and migration toward equities has pummeled the precious metal.

Gold fell as low as $872.90, and at 6.00 p.m. EDT was at $883.50. Since the record high of $1,030.80 two weeks ago, gold has fallen by 15 percent.

"Given the elevated level of speculative interest, we would not rule out a deepening of the current correction in prices," said Suki Cooper, precious metals analyst at Barclays Capital.

"However, the overall environment for gold remains positive over the forthcoming months," she added.

Manufacturing and retail strength in the U.S. helped the dollar gain more than expected.

U.S. gold futures for June delivery finished at $33.70, or $887.80 an ounce on the COMEX division of the NYMEX.