Thursday, November 18, 2010

Barrick (NYSE:ABX), Newmont (NYSE:NEM), Goldcorp (NYSE:GG) Enjoy Rebound as Gold Prices Soar Again

Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM), Goldcorp (NYSE:GG) are moving up again as gold prices rebound on news the U.S. dollar has gone back to its usual practice of falling in value.

The temporary strengthening of the dollar came from the fall in value of the euro because of the ongoing sovereign debt crisis in Europe. That seems to be priced into the dollar and gold, and so the greenback will go back to losing value on the Federal Reserve's inflating or printing of the currency, which hides behind the name now of "quantitative easing."

Spot gold and gold futures were both up by almost $20, with spot gold reaching $1,354.10 an ounce at about 2:00 PM EDT, gaining $18.30.

Barrick was trading at $50.02, rising by $0.85, or 1.73 percent, as of 2:03 PM EST. Newmont was at $60.70, increasing $1.11, or 1.86 percent. Goldcorp was up to $45.98, gaining $1.11, or 2.47 percent.

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