IAMGOLD Corporation (NYSE:IAG), NovaGold Resources Inc. (AMEX:NG), Yamana Gold (NYSE:AUY) and Kinross Gold Corp (NYSE:KGC) as the gold price climbed on the credit downgrade of Portugal by Moody's (NYSE:MCO) and concerns China may follow, as it battles inflation.
The gold price jumped $14.80 to $1,527 an ounce at the Comex division of the New York Mercantile Exchange Wednesday after China announced it would be boosting interest rates for the third time in 2011. The price of gold dropped as low as $1,510 an ounce before rebounding up to $1,529 after the People’s Bank of China said that the one-year lending rate will be increased from 6.31 percent to 6.56 percent, going into effect Thursday.
Next week China will release its consumer price index figures, which are expected to jump above 6 percent.
With Portugal downgraded to junk status, Greece with only a promise to implement austerity measures, and the U.S. sinking into economic oblivion, safe-haven assets like gold continue to be the focus of investors, as the clueless Obama administration and Democrats continue to battle to raise the debt ceiling at a time when spending needs to be cut back.
With Republicans being voted in to fight against outrageous government spending, they are under pressure to come through in fighting against raising the debt ceiling and cutting back on the size of government and it spending, it is a momentous time for them, as they have a chance to secure long-term rule if they have an ounce of courage and integrity to keep their promises.
Kinross closed at $16.67, gaining $0.13, or 0.79 percent. Yamana closed at $12.52, jumping $0.35, or 2.88 percent. NovaGold ended the session at $10.22, up $0.11, or 1.09 percent. Iamgold closed at $19.25, rising $0.04, or 0.21 percent.
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