Tuesday, December 28, 2010

Barrick (NYSE:ABX), Goldcorp (NYSE:GG), Newmont Mining (NYSE:NEM) Push Up as Gold Prices Break $1,400 Again

Since December 6th gold mining companies have been on a downward trend, as investors took profits and focused on what appears to be a decent Christmas season for retailers. Major gold miners like Barrick Gold (NYSE:ABX), Goldcorp (NYSE:GG) and Newmont Mining (NYSE:NEM) all started their drop on the 6th of December, and today have finally made a nice rebound as gold prices soared past $1,400 an ounce, pulling the share prices up with it.

Most of this is connected to the fall in value of the U.S. dollar again, but also, as mentioned, decent Christmas retail sales, which may have brought to the remembrance of investors the very real threat of inflation, and probably lowering the perceived risk of deflation.

As of 12:13 PM EST, gold prices continue to hold, and the usual sell-off after a rise in price earlier in the trading session hasn't emerged yet, and as far as spot gold stands at $1,405.20 an ounce, up by $21.10 on the day.

Gold for February delivery surged $18.30 to $1,400.70 an ounce at the Comex division of the New York Mercantile Exchange earlier in the day.

Goldcorp was trading at $45.36, up $0.88, or 1.98 percent, as of 12:14 PM EST.Newmont Mining was at $61.68, up $1.59, or 2.65 percent. Barrick Gold was trading at $53.03, up $1.43, or 2.77 percent.

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