Thursday, December 2, 2010

Exeter (AMEX:XRA), Gammon (NYSE:GRS), Nevsun (AMEX:NSU), Northgate Minerals (AMEX:NXG) Soar on China Gold Imports

Gold prices today were soaring before noon as news from the Shanghai Gold Exchange that China had acquired 209 metric tons of the yellow metal through October caused gold miners like Exeter (AMEX:XRA), Gammon (NYSE:GRS), Nevsun (AMEX:NSU) and Northgate Minerals (AMEX:NXG) soar in share price.

To contrast this, China only acquired 45 tons of gold for all of 2009, showing they are protecting their assets in the midst of a weak currency environment; particularly against inflation.

Gold fell down to earth after noon, as is a common event for the precious metal, which was closing in on $1,400 an ounce before plummeting.

No matter. Gold prices will continue to rise for some time, and are at this time looking for an excuse to make a big move again, although speculators will continue to make it a volatile ride on the way up.

Exeter was trading at $5.92, up by $0.37, or 6.67 percent as of 1:05 PM EST. Gammon was at $7.15, gaining $0.33, or 4.84 percent. Nevsun rose to $6.23, increasing $0.25, or 4.19 percent. Northgate was trading at $3.08, up $0.11, or 3.70 percent.

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