Gold, Silver Shares Rally, Outperform Metals

Gold and silver shares posted strong gains Friday despite mixed action in precious metals.

The Philadelphia Gold & Silver Index (XAU) – a composite of the sector’s largest companies – rallied 2.5% to 189.10 in mid-day trading.  Among gold producers, two of the top performing names today were Randgold Resources (GOLD) and Yamana Gold (AUY) – which jumped 3.5% and 3.0%, respectively.  Read More »

$2,000 Gold Target Maintained, “Structural Problems” Persist

Bank of America Merrill Lynch maintained its 12-month gold price forecast of $2,000 per ounce despite the yellow metal’s weakness in recent weeks.

In a note to clients, the firm wrote that “It is worth noting that falling quotations were not accompanied by substantial outflows from physically backed exchange traded funds particularly in recent days.  Hence, the correction was not necessarily driven by a broad-based reassessment of fundamentals.”
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Gold Price Steady as Recession Concerns Mount

The gold price held steady near $1,615 per ounce Friday morning while concerns over a global economic slowdown continued to weigh on financial markets.  The spot price of gold climbed to as high as $1,635.80 in overnight trading, but relinquished its gains as the U.S. dollar moved higher against a basket of the world’s leading currencies.  The SPDR Gold Trust (GLD), a proxy for the gold price and the world’s largest gold ETF, dipped 0.4% to $157.02 per share in pre-market activity.
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