Gold Rises on Dollar's Drop

Source: Bloomberg, Pham-Duy Nguyen (10/8/10)

"The jobs number reinforces expectations of quantitative easing."

Gold futures rose, rebounding from the biggest drop since July, as the dollar's slump boosted the appeal of the precious metal as an alternative asset.

The greenback fell to the lowest level against the yen since 1995 after a report showed the U.S. lost more jobs in September than economists estimated. Before today, gold climbed 22% this year, reaching a record $1,366 an ounce yesterday.

"The uptrend in gold continues because the dollar just continues to lose ground," said Matthew Zeman, a metal trader at LaSalle Futures Group in Chicago. "There's more downside in the dollar. The jobs number just reinforces the fact that we'll see more quantitative easing."

Gold futures for December delivery rose $11.20, or 0.8%, to $1,346.20 at 12:21 p.m. on the Comex in New York. The price dropped 0.9% yesterday, the most since July 27.

U.S. employers cut staffing by 95,000 workers after a revised 57,000 decrease in August, the Labor Department said today. The median estimate of economists surveyed by Bloomberg News was a drop of 5,000. The unemployment rate held at 9.6%.

The Fed has kept the benchmark lending rate at zero% to 0.25% since December 2008 and purchased Treasuries and mortgage-backed securities to inject more cash into the economy and spur growth. Gold is headed for the 10th straight annual gain.

The metal may "exhibit a retrenchment in the near term," and fall to $1,300, said Tom Pawlicki, an analyst at MF Global Holdings Inc. in Chicago.

The 14-day relative-strength index, a gauge of price momentum, has been above 70 since Sept. 22, a signal that prices may decline. Gold reached a record in 14 sessions since Sept. 14.

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Source: Streetwise Reports (07/13/2020)

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"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

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Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

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Source: Reuters (12/20/2008)

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I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

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Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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