Thursday, April 21, 2011

Ivanhoe (IVN) (NEM) (SA) (MFN) Close Mixed as Gold Breaks Record Again

Ivanhoe Mines Ltd. (NYSE:IVN), Newmont Mining (NYSE:NEM), Seabridge Gold (AMEX:SA) and Minefinders (AMEX:MFN) closed mixed on Wednesday as gold continues to break records on a daily basis recently.

Gold prices soared to another intraday record, reaching as high as $1,506.20 an ounce before pulling back to settle for June delivery in at $1,498.90 an ounce, an increase of $3.80 at the Comex division of the New York Mercantile Exchange.

Wednesday was the fourth session in a row gold prices broke an intraday record, as well as settling at a new record as well.

After breaking the $45 level, silver prices ended the day up 54 cents to close at $44.46 an ounce. That was also another 31-year high as it pushes to break $50 and move on to an all-time record.

Gold and silver prices continue to soar on safe-haven buying with the major impetus at this time probably being a collapsing U.S. dollar. The U.S. dollar index was plunging 0.84% to $74.43 as it continues to struggle after Monday's S&P downgrade of the U.S. economy, and warning of a credit downgrade if the U.S. doesn't quit its outrageous spending and reduce its debt.

The downgrade of U.S. debt, sovereign debt crisis in Europe, Chinese inflation, soaring oil prices, and the ongoing fallout from the earthquake in Japan are just some of the other factors offer support to gold.

The gold-silver ratio, which measures how many silver ounces are needed to acquire an ounce of gold, fell under 34 — its lowest level since 1983.

Ivanhoe Mines Ltd. closed Wednesday at $26.24, gaining $0.48, or 1.86 percent. Newmont Mining closed at $58.85, up $0.22, or 0.38 percent. Seabridge Gold ended the trading session at $33.79, falling $0.68, or 1.97 percent. Minefinders closed at $16.52, jumping $0.71, or 4.49 percent.

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