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Tuesday, April 19, 2011

Goldcorp (GG) (ANV) (AU) (KGC) Close Down Even as Gold Prices Soar to Record High Again

While gold prices reached new all-time highs on Monday, that wasn't the direction for gold miners Goldcorp (GG), Allied Nevada Gold (AMEX:ANV), AngloGold Ashanti (NYSE:AU) and Kinross Gold Corp (NYSE:KGC), which all closed down on the day.

Spot gold jumped as high as $1,497.20 an ounce Monday after Standard & Poor’s downgraded its credit outlook for the United States, revealing the risks associated with its own sovereign debt crisis.

U.S. gold futures for June delivery settled up $6.90 an ounce at $1,492.90.

The sovereign debt crisis in Europe continues to boost gold as well, as the euro and U.S. dollar continue to face pressures on out-of-control government spending and refusal to make meaningful spending cuts.

Global inflation and unrest in the Middle East also continue to be major factors in the gold price equation.

As to why gold miners have been pulling back, a lot of that is based on the fact the majority of the miners are based in Canada, and so the weaker U.S. dollar as it relates to the Canadian dollar is a major factor a lot of investors in gold companies don't take into account.

Goldcorp closed Monday at $53.72, falling $0.46, or 0.85 percent. AngloGold Ashanti closed at $48.50, dropping $0.80, or 1.62 percent. Allied Nevada Gold ended the day at $37.57, down $1.54, or 3.94 percent. Kinross closed at $15.22, losing $0.45, or 2.87 percent.

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