Tuesday, April 12, 2011

NovaGold (NG) (GFI) (GRS) Fall as Gold Prices Drop Monday

Gold prices took a breather Monday after soaring for several days, ending up with gold miners like NovaGold Resources Inc. (AMEX:NG), Gold Fields (NYSE:GFI) and Gammon Gold (NYSE:GRS) dropping in price.

On Monday gold prices closed lower, falling $6 to $1,468 an ounce on the Comex division of the New York Mercantile Exchange. The contract had set a new all-time in the last session, reaching $1,478 a troy ounce.

June gold settlements were $1,468.10, down $7.90; Range was $1,465.40-$1,472.80.

Much of the recent jump in gold prices is based upon the collapsing U.S. dollar, pullback in China, sovereign debt crisis in Europe, unrest in the Middle East, deepening inflation and consequences of the Japanese earthquake are just some of the negative factors hitting the markets.

A stronger dollar on Monday pressured gold prices down. The U.S. dollar battled back to gain lost ground from the euro, with the European currency trading at $1.4426, down from $1.4480 on Friday.

Gammon Gold closed Monday at $10.37, falling $0.13, or 1.24 percent. NovaGold Resources closed at $13.13, down $0.63, or 4.58 percent. Gold Fields closed at $18.14, dropping $0.41, or 2.21 percent.

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