Several elements have contributed to the recent sell off in gold, with the primary one being investors covering losses in other investment vehicles.
Bargain hunters are circling gold today as options expiration has them looking for deals after the 12 percent four-day sell off.
Gold for December delivery was adding $67.40 at $1,662.10 an ounce at the Comex division of the New York Mercantile Exchange. It almost reached $1,800 an ounce before the markets opened in New York.
Those unfamiliar with gold are questioning whether the run is over, showing they completely misunderstand the reasons behind the decade-long soaring of gold prices.
The endless pouring of money into the market by the Federal Reserve, and the enormous debt crisis the Western world faces are the primary motivators behind the support of gold prices, and absolutely nothing has changed in that regard, so gold prices will continue to rise for a long time to come, as the Obama recession continues.
Barrick Gold (ABX) was trading at $48.42, gaining $1.03, or 2.17 percent, as of 12:24 PM EDT. Newmont Mining (NEM) was at $64.75, up $0.36, or 0.56 percent. Eldorado (EGO) was at $18.22, jumping $0.46, or 2.59 percent. Yamana (AUY) was trading at $14.50, up $0.34, or 2.40 percent. Novagold (NG) was trading at $7.34, up $0.06, or 0.82 percent.
Showing posts with label Gold Prices 2011. Show all posts
Showing posts with label Gold Prices 2011. Show all posts
Tuesday, September 27, 2011
Thursday, July 7, 2011
IAMGOLD (IAG) (NG) (AUY) (KGC) Close up as Gold Prices Climb Again
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.
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.
Friday, July 1, 2011
Miners (ABX) (GG) (NEM) Close Up While Gold Falls
Newmont Mining (NYSE:NEM), Barrick Gold (NYSE:ABX) and Goldcorp (NYSE:GG) closed up Thursday, even as gold prices fell.
Gold closed down on the last day of the quarter, as prices weakened after Greece voted for austerity measures in order to prevent a debt default by securing financial aid.
Even so, gold still finished the quarter in positive territory because of an ongoing extremely weak global economy.
As for the sovereign debt crisis in Europe, it continues to fluctuate back and forth as the EU battles to keep countries from becoming the first domino to drop in what could quickly become a contagion. The sovereign debt situation in Europe is far from being solved or safe.
Gold closed the quarter up by close to five percent, settling at $1,502.80, down $7.60 for August futures. Spot gold was trading at just over $1,500 an ounce.
The inability of gold to rally on a weak U.S. dollar has some concerned it could be a negative sign for the next quarter. Against a basket of currencies the greenback was down half a percent. Most of that on an expected increase in interest rates in Europe.
Silver also closed down Thursday, ending the quarter down 7.5 percent. If it doesn't find more support, many believe it could drop significantly more before it begins its upward climb again. Silver had nine straight positive quarters before this one.
Newmont Mining closed at $53.97, gaining $0.45, or 0.84 percent. Goldcorp closed at $48.27, up $0.02, or 0.04 percent. Barrick Gold closed at $45.29, rising $0.21, or 0.47 percent.
Gold closed down on the last day of the quarter, as prices weakened after Greece voted for austerity measures in order to prevent a debt default by securing financial aid.
Even so, gold still finished the quarter in positive territory because of an ongoing extremely weak global economy.
As for the sovereign debt crisis in Europe, it continues to fluctuate back and forth as the EU battles to keep countries from becoming the first domino to drop in what could quickly become a contagion. The sovereign debt situation in Europe is far from being solved or safe.
Gold closed the quarter up by close to five percent, settling at $1,502.80, down $7.60 for August futures. Spot gold was trading at just over $1,500 an ounce.
The inability of gold to rally on a weak U.S. dollar has some concerned it could be a negative sign for the next quarter. Against a basket of currencies the greenback was down half a percent. Most of that on an expected increase in interest rates in Europe.
Silver also closed down Thursday, ending the quarter down 7.5 percent. If it doesn't find more support, many believe it could drop significantly more before it begins its upward climb again. Silver had nine straight positive quarters before this one.
Newmont Mining closed at $53.97, gaining $0.45, or 0.84 percent. Goldcorp closed at $48.27, up $0.02, or 0.04 percent. Barrick Gold closed at $45.29, rising $0.21, or 0.47 percent.
Wednesday, December 22, 2010
Freeport (NYSE:FCX) Goldman's (NYSE:GS) Best Way to Play Gold, Copper
Goldman Sachs (NYSE:GS) raised their gold and copper price projections for 2011, and chose Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) as the best way to play the two.
For copper, Goldman raised their price projection for 2011 from $3.50 to $4.25 and for 2012 from $3.75 to $4.15.
For gold they raised their price projection for 2011 from $1,325 to $1,575 an ounce and for 2012 from $1,200 to $1,575 an ounce.
Also raised was their coal and zinc estimates, with coal increased to $229 for 2011 and $214 for 2012. Zinc was raised to $1.17 for 2011 and $1.10 for 2012.
Freeport-McMoRan Copper & Gold Inc. was trading at $116.35, up $0.15, or 0.13 percent, as of 11:45 AM EST.
For copper, Goldman raised their price projection for 2011 from $3.50 to $4.25 and for 2012 from $3.75 to $4.15.
For gold they raised their price projection for 2011 from $1,325 to $1,575 an ounce and for 2012 from $1,200 to $1,575 an ounce.
Also raised was their coal and zinc estimates, with coal increased to $229 for 2011 and $214 for 2012. Zinc was raised to $1.17 for 2011 and $1.10 for 2012.
Freeport-McMoRan Copper & Gold Inc. was trading at $116.35, up $0.15, or 0.13 percent, as of 11:45 AM EST.
Thursday, October 7, 2010
Morgan Stanley (NYSE:MS) Raises Gold Projection for 2011
As gold prices continue to break records on a weekly basis, projections continue to rise based on a number of factors, and Morgan Stanley (NYSE:MS) has raised its forecast for gold prices in response.
Morgan Stanley, "Accelerating weakness in the U.S. currency, driven by fears of renewed quantitative easing to confront sluggish U.S. growth, is proving to be a boon to commodity markets."
At a support level, Morgan sees gold holding at about $1,315 for 2011, while under a bull scenario rising to as high as $1,512.
Morgan noted they like other commodities and commondity stocks, including copper and iron ore. They see iron ore rising to $135 a ton in 2011.
Two copper companies they like are Kazakhmys Plc and Xstrata Plc.
Morgan Stanley, "Accelerating weakness in the U.S. currency, driven by fears of renewed quantitative easing to confront sluggish U.S. growth, is proving to be a boon to commodity markets."
At a support level, Morgan sees gold holding at about $1,315 for 2011, while under a bull scenario rising to as high as $1,512.
Morgan noted they like other commodities and commondity stocks, including copper and iron ore. They see iron ore rising to $135 a ton in 2011.
Two copper companies they like are Kazakhmys Plc and Xstrata Plc.
Monday, September 27, 2010
Barrick (NYSE:ABX) Sees $1,500 Gold in 2011
The largest gold mine in the world, Barrick Gold (NYSE:ABX), said it sees gold prices in 2011 "easily" surpassing $1,500 an ounce.
Barrick CFO Jamie Sokalsky cites the underlying supports which should ensure gold continues to rise, as the reason for his optimism.
Those supports include the European sovereign debt crisis which won't go away, geopolitical circumstances, macroeconomic issues, and supply and demand.
Taken together, Sokalsky is right, there is nothing to justify believing those issues are going to go away any time soon, and that guarantees the price of gold will continue to go up until it does.
Although Sokalsky didn't point to it specifically, the expected near-future quantitative easing by the Federal Reserve will be another part of the support foundation for gold.
At the London Bullion Market Association meeting, on average those attending believe gold prices will stand at over $1,400 at the same time next year.
As for how Sokalsky likes that potential in reference to Barrick, he sees them positioned strongly to move up with the price increase of gold, saying the elimination of hedges and prices locked in of future production concerning forward sales is good news for the company and shareholders.
Even though cash costs estimates will probably be at the top end because of royalties related to the increase in gold prices, that also will help increase margins for the same reason, with margins versus cash costs growing to over $700 an ounce in the second quarter.
Barrick CFO Jamie Sokalsky cites the underlying supports which should ensure gold continues to rise, as the reason for his optimism.
Those supports include the European sovereign debt crisis which won't go away, geopolitical circumstances, macroeconomic issues, and supply and demand.
Taken together, Sokalsky is right, there is nothing to justify believing those issues are going to go away any time soon, and that guarantees the price of gold will continue to go up until it does.
Although Sokalsky didn't point to it specifically, the expected near-future quantitative easing by the Federal Reserve will be another part of the support foundation for gold.
At the London Bullion Market Association meeting, on average those attending believe gold prices will stand at over $1,400 at the same time next year.
As for how Sokalsky likes that potential in reference to Barrick, he sees them positioned strongly to move up with the price increase of gold, saying the elimination of hedges and prices locked in of future production concerning forward sales is good news for the company and shareholders.
Even though cash costs estimates will probably be at the top end because of royalties related to the increase in gold prices, that also will help increase margins for the same reason, with margins versus cash costs growing to over $700 an ounce in the second quarter.
Monday, July 26, 2010
UBS (NYSE:UBS), CIBC World Markets, TD Securities Increase Gold Estimates
Last week, investment banks UBS (NYSE:UBS), CIBC World Markets and TD Securities all increased their outlook on gold prices, will all of them looking for around $1,300 an ounce or more going forward.
UBS was the last of the three during the week to upwardly revise their numbers, increasing their outlook from $1,129 an ounce to $1,205 an ounce for 2010, and up to $1,295 an ounce, from $1,250 an ounce in 2011.
The dubious stress tests and their results didn't impress UBS, as it didn't many others, as the bank noted that "ongoing pressure on sovereign debt markets, combined with persistent concern over private sector credit contraction will raise the specter of debt monetization repeatedly over the next few years.”
TD Securities increased their gold price estimates in 2011 from $1,100 to $1,300, and from $1,000 to $1,400 in 2012. They also cited global economic uncertainties as the impetus behind their changes in viewpoint concerning gold.
For CIBC World Markets, their changes were the largest, increasing their outlook in 2012 to $1,500 an ounce. Over the long term, they see gold leveling at from $1,000 to $1,200 an ounce.
The fall season is historically a big mover for gold prices, and with prices continuing to find support a slightly below $1,200 an ounce, gold could make a big move starting in September.
UBS was the last of the three during the week to upwardly revise their numbers, increasing their outlook from $1,129 an ounce to $1,205 an ounce for 2010, and up to $1,295 an ounce, from $1,250 an ounce in 2011.
The dubious stress tests and their results didn't impress UBS, as it didn't many others, as the bank noted that "ongoing pressure on sovereign debt markets, combined with persistent concern over private sector credit contraction will raise the specter of debt monetization repeatedly over the next few years.”
TD Securities increased their gold price estimates in 2011 from $1,100 to $1,300, and from $1,000 to $1,400 in 2012. They also cited global economic uncertainties as the impetus behind their changes in viewpoint concerning gold.
For CIBC World Markets, their changes were the largest, increasing their outlook in 2012 to $1,500 an ounce. Over the long term, they see gold leveling at from $1,000 to $1,200 an ounce.
The fall season is historically a big mover for gold prices, and with prices continuing to find support a slightly below $1,200 an ounce, gold could make a big move starting in September.
Thursday, July 15, 2010
Goldman (NYSE:GS) Raises Gold Forecast to $1,355 an Ounce
Goldman Sachs (NYSE:GS) upwardly revised its 12-month gold forecast to $1,355 an ounce, an increase of 1.5 percent.
Most of the change was based on the threat of the sovereign debt crisis in Europe, and a long period of low interest rates.
Goldman still adheres to the idea gold prices will fall sometime after 2011, once the Federal Reserve tightens the money supply. Consequently they recommended gold producers to sell their production forward.
The banking giant increased their estimates for every base metal with the exception of zinc, which they cut to $2,225 a metric ton, a decline of 18 percent.
Most of the change was based on the threat of the sovereign debt crisis in Europe, and a long period of low interest rates.
Goldman still adheres to the idea gold prices will fall sometime after 2011, once the Federal Reserve tightens the money supply. Consequently they recommended gold producers to sell their production forward.
The banking giant increased their estimates for every base metal with the exception of zinc, which they cut to $2,225 a metric ton, a decline of 18 percent.
Wednesday, May 26, 2010
Third of Goldcorp (TSE:G) Cashflow to Come From Mexico
About a third of future cashflow for Goldcorp (TSE:G) (NYSE:GG) is projected to come from Mexico, which is ramping up its latest project in Mexico, the Penasquito mine, in the third quarter.
Goldcorp invested about $1.7 billion in the project, which is expected to produce close to 1 million gold equivalent ounces a year for the company.
By the early part of 2011, the company should be working 130,000 tons a day.
Penasquito will match the largest existing gold project of Goldcorp, their Red Lake project in Ontario, which includes the expansion they're doing there over the next two years.
Investors are excited about Goldcorp because of their growth profile, which is estimated to bring up to 2.6 million ounces of gold in 2010, at a cash cost of $350 an ounce, an increase from the 2.4 million ounces produced in 2009 at $295 an ounce.
For the next five years the company is projecting a 50 percent increase in production, based for the most part on the Penasquito project, although they have other mines scheduled to come on line, like the Pueblo Viejo in the Dominican Republic, where gold production should launch in 2011, and estimates of 400,000 ounces of gold produced in the first five years.
Rising costs have put some pressure on margins and earnings, but the company still looks very solid, and with gold prices sure to continue rising, that'll be largely widened.
Costs have come under better control at Goldcorp and the gold mining industry in general, as energy and equipment costs has risen in response to growing demand.
Going forward, analysts are looking for profits for the year to grow 46 percent over 2009, to $1.17 a share, and another 41 percent in 2011.
Goldcorp invested about $1.7 billion in the project, which is expected to produce close to 1 million gold equivalent ounces a year for the company.
By the early part of 2011, the company should be working 130,000 tons a day.
Penasquito will match the largest existing gold project of Goldcorp, their Red Lake project in Ontario, which includes the expansion they're doing there over the next two years.
Investors are excited about Goldcorp because of their growth profile, which is estimated to bring up to 2.6 million ounces of gold in 2010, at a cash cost of $350 an ounce, an increase from the 2.4 million ounces produced in 2009 at $295 an ounce.
For the next five years the company is projecting a 50 percent increase in production, based for the most part on the Penasquito project, although they have other mines scheduled to come on line, like the Pueblo Viejo in the Dominican Republic, where gold production should launch in 2011, and estimates of 400,000 ounces of gold produced in the first five years.
Rising costs have put some pressure on margins and earnings, but the company still looks very solid, and with gold prices sure to continue rising, that'll be largely widened.
Costs have come under better control at Goldcorp and the gold mining industry in general, as energy and equipment costs has risen in response to growing demand.
Going forward, analysts are looking for profits for the year to grow 46 percent over 2009, to $1.17 a share, and another 41 percent in 2011.
Tuesday, May 25, 2010
Goldcorp (NYSE:GG), Kinross (NYSE:KGC) Should be Outperformed by Barrick (NYSE:ABX), Newmont Mining (NYSE:NEM) says Deutsche Bank (NYSE:DB)
Deutsche Bank (NYSE:DB) analyst Jorge Beristain probably didn't win any friends from Goldcorp (TSE:G) (NYSE:GG) and Kinross Gold (NYSE:KGC) today, as he upgraded major rival Barrick Gold (TSE:ABX) (NYSE:ABX), and reiterated their "Buy" rating on Newmont Mining.
What he added I'm sure ruffled their feathers, as he said Barrick and Newmont should outperform Goldcorp and Kinross in the current economic environment.
Beristain also said the changes in the macro economic picture makes the gold situation even more compelling, as he raised his price targets for gold in 2011 to $1,450, and in 2012 to $1,600 an ounce.
His price target was raised on Barrick from $45 to $53.
What he added I'm sure ruffled their feathers, as he said Barrick and Newmont should outperform Goldcorp and Kinross in the current economic environment.
Beristain also said the changes in the macro economic picture makes the gold situation even more compelling, as he raised his price targets for gold in 2011 to $1,450, and in 2012 to $1,600 an ounce.
His price target was raised on Barrick from $45 to $53.
Subscribe to:
Posts (Atom)