Reuters Underscoring the ongoing fragility of the U.S. and global economies, when some civil unrest in Egypt emerged, investors flocked to gold as their asset of choice, pushing up the share price of miners like NovaGold (NYSE:NG), Barrick (NYSE:ABX) and Eldorado Gold (NYSE:EGO).
This is important to note for investors because it shows people aren't as convinced of the media-induced "recovery" as the mainstream financial media thinks they are, and as soon as some negative news was presented, gold was again seen as the investment of choice.
Once this period of correction is over for gold, we'll see gold prices begin to soar again, and as negative news adds to the mix, along with the realization of the ongoing housing crisis, EU sovereign debt crisis, and other uncertainties remain in place, gold will resume its long-term upward run. It's not a matter of if, only a matter of when.
It appears gold won't be going to much lower before long-term gold investors enter into the arena again; at least the more aggressive of them.
Because of the location of the unrest, oil should be a factor as well, depending on how widespread it becomes.
Eldorado Gold closed Friday at $16.41, gaining $0.30, or 1.86 percent. Barrick Gold closed at $47.30, up $0.93, or 2.01 percent. Novagold closed at $13.67, gaining $0.47, or 3.56 percent.
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