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Friday, April 23, 2010

Barrick (TSE:ABX), Goldcorp (TSE:G) and Yamana (TSE:YRI) Up on Weak U.S. Dollar

Barrick Gold (TSE:ABX)(NYSE:ABX) Goldcorp (NYSE:GG)(TSE:G) and Yamana Gold (TSE:YRI)(NYSE:AUY) are all enjoying a surge in gold prices today as Germany's assertion it stands ready to aid Greece pushed the euro up and the U.S. dollar down, resulting in gold prices increasing by over 1 percent at its high for the day.

Gold mining companies are partaking in the gold price surge, as Greece seems all but sure to need a bailout, although there is still a lot of uncertainty as to whether it will be enough or they come back in a year or two wanting or needing more.

Either way, gold investors like it when the European Union says they'll back up Greece, and gold prices increase whenever that statement is made and confirmed.

Even so, those holding or wanting to increase their positions in gold would do better to watch inflation, interest rates and things related to economic safety, rather than the economic soap opera coming from Europe, which while real, has a lot of script to go before we really see how bad the region is.

Portugal debt has been under pressure, as bonds rise in value, and it seems Spain and Italy, and possibly Ireland could be next in line - in that order - to ask for a handout.

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