Tuesday, September 27, 2011

Gold Prices Jump as Bargain Hunters Return

Several elements have contributed to the recent sell off in gold, with the primary one being investors covering losses in other investment vehicles.

Bargain hunters are circling gold today as options expiration has them looking for deals after the 12 percent four-day sell off.

Gold for December delivery was adding $67.40 at $1,662.10 an ounce at the Comex division of the New York Mercantile Exchange. It almost reached $1,800 an ounce before the markets opened in New York.

Those unfamiliar with gold are questioning whether the run is over, showing they completely misunderstand the reasons behind the decade-long soaring of gold prices.

The endless pouring of money into the market by the Federal Reserve, and the enormous debt crisis the Western world faces are the primary motivators behind the support of gold prices, and absolutely nothing has changed in that regard, so gold prices will continue to rise for a long time to come, as the Obama recession continues.

Barrick Gold (ABX) was trading at $48.42, gaining $1.03, or 2.17 percent, as of 12:24 PM EDT. Newmont Mining (NEM) was at $64.75, up $0.36, or 0.56 percent. Eldorado (EGO) was at $18.22, jumping $0.46, or 2.59 percent. Yamana (AUY) was trading at $14.50, up $0.34, or 2.40 percent. Novagold (NG) was trading at $7.34, up $0.06, or 0.82 percent.

No comments: