Gold Takes a Wild Ride Lower

Source: The Street, Alix Steel (11/12/10)

"Inflationary indicators are good for gold, but a rate hike would hurt metal prices."

Gold prices tanked by double digits Friday with the action driven by a combination of technical selling and rumors that China might raise interest rates.

Gold for December delivery settled $37.80 to $1,365.50 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,410 and as low as $1,359.30 on Friday.

The U.S. dollar index was losing 0.12% to $78.12 while the euro recovered slightly after an early morning decline to $1.36 vs. the dollar. The spot gold price was down more than $46, according to Kitco's gold index.

Gold prices suffered Friday as speculation mounted that China might raise key interest rates to combat rising inflation. Thursday's consumer price index showed that year-over-year inflation in the country rose 4.4%, which was higher than expected, despite efforts to take money out of circulation.

China has raised the amount of money banks must keep in reserve multiple times over the past year but inflation still remains an issue. Although inflationary indicators are good for gold as they make the metal more appealing as a safe-haven asset, a rate hike would hurt metal prices.

"Looks like more position sellers from ETFs are starting to appear," says George Gero, senior vice president at RBC Wealth Management "in previous days they were buyers while futures were being sold."

An uncertain global economic climate and jittery equity markets are also not helping gold as many investors are selling some of their long positions in gold to raise cash and cover losses elsewhere. Gold has been one of the top-performing assets this year up 27% year to date.

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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