Source: GoldAlert.Com
GOLD PRICE NEWS – The gold price advanced $3.10 to $1,345.68 Sunday night, trading higher after three consecutive weeks of losses. The price of gold has declined $75.10, or 5.3%, in 2011, and $85.82, or 6.2%, from its $1,431.50 all-time high reached on December 7, 2010. Silver has followed the gold price to the downside this year, sinking to $27.57 per ounce, a steep 10.4% decline to open the year.
Share prices of gold and silver miners have faced heavy selling pressure alongside the gold price in recent weeks. According to Barron’s, precious metals focused equity funds were the weakest sub-sector the market last week, plunging 3.82% on the week and a whopping 9.76% thus far in 2011. The gold equity sector has shown that its leverage to the price of gold works in both directions, as the AMEX Gold BUGS index (HUI) now sits with a year-to-date loss to 12.0%. Barrick Gold (ABX) and Newmont Mining (NEM), the world’s two largest gold producers, have retreated 11.7% and 9.1%, respectively, in 2011.
Barron’s Roundtable member, Fred Hickey, a long-time bull on the gold price, expressed a bullish outlook for gold stocks despite the recent losses. He recommended investors accumulate Yamana Gold (AUY) and Newmont Mining (NEM) at current prices. Hickey cited Yamana’s low price to earnings ratio and predicted that Newmont would have a “blowout quarter” on the back of strong gold prices.
Unlike the bounce in the gold price, S&P 500 stock futures opened Sunday night to the downside, sliding 1.50 to 1278.20. Tonight’s minor dip comes after the S&P 500 closed lower last week for the first time in eight weeks. Last week’s 0.76% decline in the S&P 500 index paled in comparison to the steeper drops in the more speculative sectors of the broader market. The technology-heavy NASDAQ dropped 2.4% and the Russell 2000, an index of small-capitalization companies, fell 4.26% – its second
GOLD PRICE NEWS – The gold price advanced $3.10 to $1,345.68 Sunday night, trading higher after three consecutive weeks of losses. The price of gold has declined $75.10, or 5.3%, in 2011, and $85.82, or 6.2%, from its $1,431.50 all-time high reached on December 7, 2010. Silver has followed the gold price to the downside this year, sinking to $27.57 per ounce, a steep 10.4% decline to open the year.
Share prices of gold and silver miners have faced heavy selling pressure alongside the gold price in recent weeks. According to Barron’s, precious metals focused equity funds were the weakest sub-sector the market last week, plunging 3.82% on the week and a whopping 9.76% thus far in 2011. The gold equity sector has shown that its leverage to the price of gold works in both directions, as the AMEX Gold BUGS index (HUI) now sits with a year-to-date loss to 12.0%. Barrick Gold (ABX) and Newmont Mining (NEM), the world’s two largest gold producers, have retreated 11.7% and 9.1%, respectively, in 2011.
Barron’s Roundtable member, Fred Hickey, a long-time bull on the gold price, expressed a bullish outlook for gold stocks despite the recent losses. He recommended investors accumulate Yamana Gold (AUY) and Newmont Mining (NEM) at current prices. Hickey cited Yamana’s low price to earnings ratio and predicted that Newmont would have a “blowout quarter” on the back of strong gold prices.
Unlike the bounce in the gold price, S&P 500 stock futures opened Sunday night to the downside, sliding 1.50 to 1278.20. Tonight’s minor dip comes after the S&P 500 closed lower last week for the first time in eight weeks. Last week’s 0.76% decline in the S&P 500 index paled in comparison to the steeper drops in the more speculative sectors of the broader market. The technology-heavy NASDAQ dropped 2.4% and the Russell 2000, an index of small-capitalization companies, fell 4.26% – its second
