Monthly Archives: August 2012

HSBC says $1,900 Gold by Year-End


Since reaching an all-time record high of $1,923 per ounce last September, the price of gold has not fared particularly well.  The yellow metal has languished for most of 2012 amid considerable strength in the U.S. dollar, the ongoing European sovereign debt crisis, and the lack of further quantitative easing by the Federal Reserve.

Nonetheless, gold is due for a substantial rebound in the months ahead, according to analysts at HSBC.  In a report published this morning, the firm forecasted that the yellow metal will climb to $1,900 per ounce by year-end.


Gold Stocks Retreat, GDX’s Win Streak at Risk


Gold stocks turned sharply lower on Tuesday following five straight days of gains, with the Market Vectors Gold Miners ETF (GDX) sliding $0.62, or 1.4%, to $43.10 per share in mid-day trading.  Gold stocks and the GDX headed south as gold futures on the COMEX gave back their earlier gains to trade down by $7.80 at $1,616.20 per ounce.  The S&P/TSX Global Gold Index, Canada’s leading basket of gold stocks, dropped 1.2% alongside the GDX.

While headlines in the gold stocks sector were few and far between on Tuesday, over the prior two trading days several large-cap gold miners and GDX components were in the news.  Barrick Gold (ABX.TSX, NYSE: ABX), the world’s largest gold producer, had its target price cut by two research firms after reporting disappointing second-quarter earnings last week.  Dundee Securities lowered its price target to C$42.00 from C$50.00, while Salman Partners cut its target to C$48.00 from C$60.00 per share.  Both firms did reiterate their Buy ratings on Barrick, however.

Spanish Mountain Gold Expands Presence in Canada

Spanish Mountain Gold (SPA.TSXV) announced that it has entered into a Mineral Claims Purchase Agreement to acquire certain mineral claims from Acrex Ventures Ltd.  The Property consists of an area of approximately 1,500 hectares and is located adjacent to the Company’s Spanish Mountain Gold Project in central British Columbia, Canada.