Gold Rally Loses Steam

Source: FXstreet (10/25/10)

". . .as positive housing data spurs dollar bounce back."

Comex Gold made strong gains this morning as the dollar resumed its fall after little substantive news came out of the G20 finance ministers meeting in South Korea. But the greenback has recently pared some of its losses after the release of better-than-expected U.S. housing data.

Gold futures for December delivery were recently up $12.20 at $1,337/oz. Despite the significant gain, the yellow metal has come well off of its intraday high of $1,349.50.

"The G20 said that they want to refrain from competitive devaluation of currencies but they didn't announce any concrete solutions or policies on how to go about doing that," a U.S.-based gold trader said. "I can sit here and say that I would like to be able to fly but unless I show you plans for a jetpack no one is going to believe me. That's how the currency markets are viewing the G20 meeting—totally dismissive," he added.

Without any clear directions from the G20, the dollar weakened during the early morning hours. The U.S. currency broke the 1.4000 level against the euro and tested a low of 1.4079.

"The likelihood that the G20 does not find a solution to growing global currency disputes leaves open the possibility that currency policy disagreements will escalate and thus support gold," said HSBC Senior VP and Metals Analyst Jim Steel. The recent correction in prices triggered a revival in physical bullion demand, he added.

"The revival in physical demand without the market even breaking $1,300 shows that physical buyers are not waiting for a major selloff before they accumulate bullion and that underlying gold demand, even in price sensitive economies, is strong," Steel said.

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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)

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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