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Saturday, June 5, 2010

AngloGold Ashanti (NYSE:AU), Gammon (NYSE:GRS), Iamgold (NYSE:IAG) All Down

Even though macro-economic conditions are positive for gold and gold mining companies, the news that job creation was only about 5 percent in the private sector of America wasn't enough to quickly turn around gold miners like AngloGold Ashanti (NYSE:AU), Gammon (NYSE:GRS), Iamgold (NYSE:IAG), who along with most gold companies trading in New York dropped on the day.

Gold futures on the other hand were able to quickly turn around an end the day up by $12.20, and finished the week at $1,220 an ounce.

For AngloGold Ashanti, they ended the day at $41.67, down $0.90 on Friday, or 2.11 percent.

Anglogold didn't have any direction during the week, and were up and down in price while remaining level overall.

Gammon Gold finished the session at $7.43 a share, falling $0.06 on Friday, or 0.80 percent.

They performed similar to Anglogold, rising and falling throughout the week without taking any particular direction, while remaining level as well.

Iamgold was more consistently down throughout the week, and ended at $16.49 a share, falling $0.43 on Friday, a 2.54 percent drop.

Iamgold started higher, and other than a big bump, dropped consistently over the last five trading days, making them probably ready for a rebound starting on Monday.

Economic news has been mixed over the last week, and that has caused a lot of concern in the market, as one day you'll hear positive news on the EU sovereign debt crisis, and the next day something which will contradict it. This happened with Greece all through the decision-making process leading up to the announced bailout.

Now that Hungary has implied they're in a similar situation as Greece, the expected line of countries looking for a handout has began, and you'll probably see a few more other than the usual suspects of Portugal, Ireland, Italy, Greece and Spain.

Add the China inflation crisis and there's a lot not to like about the global economics, which could be worse than the housing crisis in America.

Anyone that says we're in a recovery has to be in bed with the government or ignorant and clueless. The negative economic forces are probably far more powerful than is being let on, and take everything you hear with a grain of salt, and keep gold and solid gold mining companies in mind as you make your decisions based on the best and most accurate available data.

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