Friday, May 20, 2011

Royal Gold (RGLD) Trades Higher on Economic Weakness

Royal Gold (NASDAQ:RGLD) was able to trade in positive territory on Thursday even as gold prices closed down on the day.

Gold for June delivery closed down $3.40, or 0.2 percent, at $1,492.40 a troy ounce on the Comex division of the New York Mercantile Exchange.

Silver prices ended the session down. July delivery for silver fell 16.5 cents, or 0.5 percent, to $34.932 a troy ounce.

The ICE Futures' dollar index was down 0.5 percent at 75.106. The U.S. dollar was down against most of its major peers at the end of trading Thursday.

Extremely bad news on Obama's economy pressured the commodity sector.

July contracts had copper falling 5.25 cents to settle at $4.0525 a pound and platinum dropped $10.90 to $1,769 an ounce. June palladium settled down $9.05 at $728.15 an ounce.

Housing sales and manufacturing data revealed an ongoing weak and fragile American economy.

Royal Gold, Inc. is a royalty company which acquires and manages gold and other precious metals from operations around the world. Other metals in invests in are silver, copper, lead and zinc. Royal Gold invests in a percentage of a metal produced at a mine in return for a payment on the front end. They aren't exposed to any of the operations of the mining companies it invests in, thus the cost structure is low.

Royal Gold (RGLD) closed Thursday at $59.54, gaining $0.22, or 0.37 percent.

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