Monday, April 25, 2011

Ivanhoe (IVN) (SA) (RGLD) (KGC) Close Mixed Thursday as Gold Prices Break New Record

Gold futures hit another record high on Thursday, as gold gold for June delivery settled up $4.90 at $1,503.80 an ounce on the Comex. That was a new settlement high. The contract also reached an intraday high at $1,509.60 an ounce earlier in the day. Gold miners Seabridge Gold (Amex:SA), Royal Gold (Nasdaq:RGLD), Ivanhoe Mines Ltd. (NYSE:IVN) and Kinross Gold Corp (NYSE:KGC) closed mixed Thursday after most have been running up with the breaking of gold price records on a daily basis recently.

Silver settled at a 31-year high just over $46 an ounce. The most active Thursday silver contract, for May delivery, settled at a record $46.059 a troy ounce, up $1.598 or $3.6 percent.

The front-month contract, for April delivery, settled up $1.597, or 3.4 percent, at $46.062 a troy ounce, a 31-year high. Silver is quickly approaching its record high fo $50.36 an ounce, set in 1980.

A collapsing U.S. dollar continues to be a major part of the gold and silver price story, as the U.S. government refuses to cut spending and limit its size, while the Federal Reserve endlessly has its digital printing presses running, pushing down the value of the greenback.

The dollar index .DXY fell 0.4 percent to 74.092 after falling to 73.735, its lowest level since August 2008.

Other important factors include tightening in China, sovereign debt crisis in Europe, sovereign debt crisis in America, unrest in the Middle East, deepening inflation and impact of the Japanese earthquake.

The weak U.S. dollar and inflation concerns increased the attraction of gold. Spot gold XAU= hit a record high at $1,508.75 before cutting gains, while spot silver XAG= jumped to a 31-year high at $46.68 an ounce.

Spot gold prices rose during the first quarter from $1,380 an ounce on January 3 to $1,430 on March 31.

Kinross Gold Corp. closed Thursday at $15.35, dropping $0.02, or 0.13 percent. Ivanhoe Mines Ltd. ended the day at $26.66, gaining $0.42, or 1.60 percent. Royal Gold closed at $60.20, rising $1.87, or 3.21 percent. Seabridge Gold ended the session at $33.62, falling $0.17, or 0.50 percent.

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