With the U.S. government finally admitting the U.S. economy is going to continue to struggle through 2011, the Federal Reserve is preparing people for their latest inflationary step (now being called quantitative easing), and gold miners like Kinross Gold Corp (NYSE:KGC), Yamana Gold (NYSE:AUY), NovaGold Resources Inc. (AMEX:NG) and Agnico-Eagle (NYSE:AEM) are all rising with the broader gold sector, as are the vast majority of gold miners.
Gold has been having quantitative easing priced into it, but unknowns like how much money the Federal Reserve will print to buy more government debt, and how much the amount of that debt will be, keeps the price of gold rising.
That's only part of the story though, as the U.S. dollar continues to drop in value, and other central banks around the world have been implementing, or are about to implement, similar measures, which is why gold prices have been risings against a number of currencies, one of the more important things to consider in relationship to gold prices.
Other factors driving up the price of gold are the sovereign debt crisis in Europe which won't go away, low interest rates, and the recessionary economies of the West. None of which are going to change in the near future, and probably not for several years.
Kinross closed Wednesday at $19.66, gaining $0.72, or 3.80 percent. Yamana Gold (NYSE:AUY) ended the session at $11.75, rising $0.25, or 2.17 percent. NovaGold soared to $9.59, up $0.37, or 4.01 percent. Agnico-Eagle closed at $74.17, rising $2.00, or 2.77 percent.
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