Gold Prices Claw Their Way Higher

Source: The Street, Alix Steel (10/20/10)

"Prices recovering after a 2.5% plummet following China's rate hikes."

Gold prices were gaining ground Wednesday on a weaker dollar and technical trading.

Gold for December delivery was adding $7 to $1,343 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Wednesday has traded as high $1,345.90 and as low as $1,331.10.

The U.S. dollar index was slipping 1.34% to $77.16 while the euro was rallying 1.18% to $1.39 vs. the dollar. The spot gold price was up $9.10, according to Kitco's gold index

Gold prices were recovering after plummeting 2.5% Tuesday on fears that a surprise rate hike in China would crimp demand for the precious metal. The dollar popped more than 1% which also hurt gold, a dollar-backed commodity, and made the metal more expensive to buy in other currencies.

"[Gold is] vulnerable to a deeper correction should equities extend lower," says James Moore, analyst at The Bullion Desk in his daily metals report. "However, we expect gold, and to a less-extent silver, to remain underpinned by investment demand as players diversify from fiat currencies and longer-term inflation concerns."

Gold's violent correction Tuesday points to more speculative trading by hedge funds, says some experts, which can also explain the violent rallies in gold as well.

Gold will continue to look for direction from the Federal Reserve and the dollar. Numbers are starting to trickle in on the amount of quantitative easing. The previous Fed debt purchase program was $1.7 trillion, but current numbers are ranging anywhere from $1 trillion to $500 billion

In the meantime the dance between bargain hunters and profit-takers should continue as gold bulls take advantage of price dips and traders sell gold at tops to book gains.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"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)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
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.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

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. . .

It's Only the Beginning for Uranium
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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