Gold prices rebounded at the end of the week, and major gold miners like Newmont Mining (NYSE:NEM), Barrick Gold (NYSE:ABX), Goldcorp (NYSE:GG) and AngloGold Ashanti (NYSE:AU) moved up with gold prices in anticipation of an announcement by the Federal Reserve that they'll start another round of quantitative easing.
Quantitative easing or printing money, is an inflationary event which also lowers the value of the U.S. dollar, or any other currency where a country has their central bank throw more money into the market, and the result is gold prices will rise in order to protect against inflation and the debasing of the currency.
That's about to happen again in the U.S., and many gold mining companies and those that own shares in them will benefit strongly.
The only question is how much the market has already price quantitative easing into the price of gold. We'll have the obvious surge in gold price and share prices of gold miners immediately after the announcement, but the support underlying that surge is what is important to investors.
AngloGold Ashanti closed the week at $47.11, gaining $0.67 on Friday, or 1.44 percent. Barrick Gold rose to $48.09, gaining $1.07, or 2.28 percent. Goldcorp ended the week at $44.59, increasing by $0.30, or 0.68 percent, and Newmont Mining surged to $60.86, climbing $1.05, or 1.76 percent.
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