Gold at 27 Year High: Stocks Beginning to Celebrate

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...Among gold stocks, however, only heavyweight Tier I, and the secondary Tier II, groups, were invited to the party, as investors still seem to be shunning intermediate Tier III stocks, and developers.

Gold bullion cruised through the $730 an ounce level on Thursday, as the dollar hit record lows against the euro following this week's interest rate cuts by the Federal Reserve, the US central bank. Among gold stocks, however, only heavyweight Tier I, and the secondary Tier II, groups, were invited to the party, as investors still seem to be shunning intermediate Tier III stocks, and developers.

Bullion has advanced 15% this year, en route for its seventh consecutive annual gain, but investors are insistent on quality among stocks. Among resources stocks across the board, major diversified stocks have recorded the best recent performance, with only a 5% loss from 12-months highs...

Among Tier I stocks, Barrick and Kinross made record highs on Thursday on the New York Stock Exchange, after earlier record highs had been made in Australia by Newcrest and Lihir. South African issues remained the laggards among the Tier I peer group, with Harmony 30% off its 12-month highs on the NYSE. Gold Fields was far better at 17% off...

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