Gold Prices Stick Saved By Bernanke, Gold Stocks to Watch

Gold pricesNever count a gold bull out. He always has the Federal Reserve in his corner ready to give a speech to send the metal rebounding. Today was that day. Fed Chief Ben Bernanke gave a speech this morning hinting that further stimulus is needed. He does not trust current labor trends to continue and therefore more stimulus should be on the table.

That’s all the gold bulls needed to hear. Hints of QE3 and more money printing. THis sent gold prices sharply higher, jumping nearly 1% on the news. Another miss in housing data did give credence to a continued recovery either. Pending home sales were expected to rise, instead they saw a dip from January to February. [Read more...]

Gold Prices Soft On Demand and Taxation Fears, Gold Stocks to Watch

Gold pricesIt has been hard out there for a Gold bull in recent weeks. The metal has been getting hammered on all fronts as concerns are being raised on all fronts. Have gold prices in a sense become a bubble? What if the economy continues to sputter along just well enough not to demand another round of monetary easing or other Fed action?

Those that see gold as the salvation for what they deem ‘central planning run amok’ will always say buy the dip. They have been long a long time and their entire investment thesis is based off fiat currencies will die off and hard-backed currencies will return. Rightly or wrongly, they will buy and hold till the end of time so to speak.

It is the trader that looks at the metal as more of speculative play that is beginning to crack. Over the past few days you India start to ramp up taxes on gold imports. Government always finds a way to increase revenue on the back of commodities that the populace really wants. Now imagine if China does the same. What effect would that have on demand? It would almost assuredly plummet as speculators in that country would move on to something else they can sell to the masses with better margins.

Which scenario plays out over the coming months will be interesting. Will the data points that have bolstered the recovery slow or reverse enough to warrant QE 3? Or will demand soften on a continued recovery and emerging taxes on gold imports? [Read more...]

Gold Prices Look to Rebound on Market Sell-Off, Gold Stocks to Watch

Gold pricesAfter hitting a two-month low, gold prices are edging up overnight on the heels of the sell-off on Wall Street today.

Gold had been taking it on the chin in recent days as global growth fears had everyone running out of assets. Global growth concerns have been weighing heavily on gold as people look to move out of assets. Without an uptick tomorrow, gold is heading for its fourth week of consecutive losses.

Weighing on market sentiment, the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said that its holdings dropped over .5% to just over 1.2 tonnes.

Definitely been a hard few months for the gold bulls, but they may find solace in the Chinese slowdown. Plus Europe is still Europe. Add in an election year with tax implications. Still might make a bull out of this yet. [Read more...]

Gold Prices Flat as Market Trades Higher, Gold Stocks to Watch

Gold pricesGold is trading flat today and is up only $4 at $1,647.50/oz. Gold prices have taken a hit in recent days as investors’ optimism has grown as the outlook for the U.S. economy looks better. The recent jump in the dollar had also negatively affected gold.

Stocks are up some in midday trading a few days after the Dow saw a more than 200 point jump. Investors seemed to have little reaction to positive weekly jobless claims that came out earlier today. Jobless claims fell to a four year low with 351,000 initial claims for state unemployment benefits.

Gold investors have been waiting for the Fed to confirm another round of quantitative easing. But the Fed has given no indication that another round is coming or even needed. Until another round of QE or a significant downturn in the market, gold will likely continue to trade in its current range. [Read more...]

Gold Prices Wither in Fed’s Wake, Gold Stocks to Watch

Gold pricesGold price bulls have not had a good couple of days. The metal was hammered after the release of the Fed statement the other day. With the prospect of QE3 dim in the near future, gold prices were sent plumbing the depths to an 8-week low.

The dollar strengthened on the news, as the Fed indicated the economy is growing a moderate pace. Platinum has also surpassed gold in price for the first time a in a good while. Silver was also not spared the bloodbath, down over 4% on the day.

Analysts who have parsed the Fed statement, say there are increasing signs of an optimistic tone. Gold bulls have pegged the continued rally on the resumption of some form of QE 3. Could be the metal is in for a correction until the point comes when the central banks have to unwind the stimulus they have used to prop up both the financial sector and the markets. [Read more...]

Gold Trading Flat, A Quick Look at Gold Stocks

Gold pricesGold is trading pretty much flat today as stocks rally close to or over 1% in today. Gold is currently trading down slightly at $1,695.50. Stocks are rallying today as the U.S. economy shows more signs of improving. The retail sales report came out today and showed retail sales jumped 1.1% marking the biggest gain in five months. It seems consumers bought motor vehicles and other goods despite the rise in gas prices.

Gold is performing more like commodities lately as the price of oil is also falling. It’s hard to be a safe haven investment when the market is currently bullish. If the market was to turn bearish, gold may return back to its old form as investors look to sell stocks and put their money somewhere safe i.e. gold. [Read more...]

Gold Prices Rally Alongside Market, Gold Stocks to Watch

Gold pricesGold prices are rallying for the third straight day today and are currently trading up $10.90 at $1,709.60. The overall market is rallying today thanks to positive news out of Greece and a better than expected jobs report. 227,000 jobs were added in February according to the Labor Department, beating estimates of 210,000 jobs. The unemployment rate remained at a three year low of 8.3%.

Good news out of Greece also sent the market higher this morning. About 85% of bondholders participated in the credit swap on Thursday night. Just a short time ago, Greece activated the Collective Action Clauses on those who held out forcing them to participate in the credit swap. This raised the participation up to nearly 96%.

Let’s take a look at how some gold stocks are reacting to gold prices heading up for the third straight day. [Read more...]

Gold Price Sends Gold Stocks Lower

Gold pricesA market wide sell off is affecting the price of gold today. Investors’ worries grew today as a deadline between debt holders and Greece is quickly approaching. Representatives for Greek bond holders have said that a Greek default could cause more than $1.3 trillion in damage to the region. The deadline for accepting a bond swap is Thursday night and will cause creditors to lose 75% of the value of their bonds.

Stocks are down across the board today with the Dow down 195 points, the Nasdaq has slipped 43 points and the S&P 500 is down 21 points.

Gold prices are also taking a hit today. Gold for April delivery is trading down $36.00 right now at $1,667.90. Gold stocks in turn are also trading negative today. Gold prices have fallen steadily since Ben Bernanke gave no indication of additional monetary easing when speaking to members of Congress last week. [Read more...]

Gold Stocks and Gold Prices for March 5: KGC, AUY, ABX, GLD, GG, IAG

Gold pricesGold prices are slightly lower this afternoon as pretty much everything in the stock market is selling off a little bit. Gold is currently trading down nearly $5 at $1,705 per oz and is down nearly $90 since last Wednesday. Investors were disappointed last week after Ben Bernanke made no mention of further monetary easing when speaking to Congress. Gold’s sell off today could be attributed to a lack of a rally off of positive U.S. economic data as investors instead focus on poor economic data in China and Europe.

Let’s take a look how gold stocks are reacting to today’s gold price action.

Kinross Gold Corporation (NYSE:KGC) is down 2.72% this afternoon at $10.62. KGC has traded a touch over 6 million shares so far today and trades 8.6 million shares a day on average. KGC shares have dipped nearly $1 a share in the past five trading days. The company has a market cap of 12.11 billion. [Read more...]

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