Barrick Gold Corporation (NYSE:ABX) reversed a two-month slide last week, closing at $40.66, a 1% gain for the week. Last week’s stock performance was a much-welcomed improvement after the stock has been falling from $49.46 since late February. The stock is currently down 10% for the year. The gold producer will be announcing its first-quarter results on before the market open on 2 May.
Gold Investing and Gold Stocks News
Last Friday, Yamana Gold Inc. (NYSE:AUY) closed at $14.79, marking a 5.7% gain for the week. The gold producer, which will be announcing its first-quarter results after the market close on 1 May, has been on the rise again since bottoming out in mid-April at $10.30. While the stock is currently up 1.1% for the year, it is still far from the $17.97 achieved in late February. According to Thomson Reuters, the average price target for Yamana Gold Inc. is currently $20.91. How Yamana Gold Inc. will perform largely depends on how it copes with the strong headwinds in the industry.
I did this podcast with Dave Skarica of addictedtoprofits.net.
In it we talked about the current action in gold stocks and how so many people seemed to be too scared to buy them right now. Gold is down today and the GDX is up almost a percent as I write this. I got one stock up 3% today and almost all of the mining stocks I have recently bought are paying 2% plus dividends.
This is the time to buy but it seems no one can muster the courage to do it.
Something funny is happening in the mining stock world. Gold and gold stocks have been in a correction since last September and it has gone on for so long that many people are giving up on them just as it appears that this correction may be coming to an end.
Just a few days ago the well respected commentator Dennis Gartman declared on CNBC that the gold bull market that began ten years ago is over. His reasoning - the recent FOMC minutes release proves that “the game has changed.”
I did this podcast with Dave Skarica of addictedtoprofits.net.
In it I talked about my purchase of some gold stocks today and together we discussed what we see happening with mining stocks right now and over the next few years. I put out a special members only Power Investor report going over the stocks I bought.
Gold and gold stocks have been in a correction now for almost eight months and many former gold bugs are suffering so much pain that they are throwing in the towel. Dennis Gartman for instance recently appeared on CNBC and told people to "sell gold into any rally."
After falling by 3.8% last week, Newmont Mining Corporation (NYSE:NEM) rallied 1.64% on Monday to close at $52.11. The stock has been on the decline after peaking at $63.80 in late February. NEM is currently down 13.6% for the year. As a major gold producer, NEM has benefited from high gold prices, but that also means that it is subjected to the current volatility of gold prices. The company, with a market cap of $28.06 billion, will be reporting its first quarter earnings on 27 April.
I just did this podcast with Dave Skarica of www.addictedtoprofits.net.
In this podcast we talked about gold stocks. Both of us think gold and gold stocks are going to end up having a big run over the next few years. We know they have been falling lately and making goldbugs suffer, but both think the next few months will be a good time to accumulate these stocks and explain why.
While gold prices were largely unchanged last Friday ending at $1,655.94 an ounce, they posted the second-biggest weekly decline this year. The precious metal’s 3.25% drop last week, while also hitting a low of $1,634 last Wednesday, erased much of the gains made in the preceding two months.
I just did this podcast with Chris Vermeulen of www.thegoldandoilguy.com in which we discussed his outlook for the stock market and gold.
The last time we talked we noted how the market was trading in a range for weeks. Recently the DOW and S&P 500 broke out of this range. I asked Chris if he thinks this will lead to a big rally and what his take is on gold now.
Gold prices plummeted last Wednesday after US Federal Reserve Chairman Ben Bernanke’s comments to Congress appeared to rule out further monetary easing. At one point, around $100 was wiped off the price during New York trading. By Friday, gold ended at $1,709.80 an ounce, its lowest settlement price since 25 January.
Last Friday, gold closed at $1,776 an ounce, marking a 2.93% gain for the week. This was also the precious metal’s highest gain in four weeks. Clearing a technical hurdle of $1,760, gold also rallied to a three-month high last week. It was believed that the EU finance ministers’ approval of a bailout package for Greece earlier in the week had provided some confidence in the financial and commodities markets.
Last Friday, gold prices settled marginally lower at $1,725.90 an ounce, after a mixed performance during the week. (This marked a 0.04% gain for the week.) Given the general optimism that the Greek debt issue could finally be resolved in the coming days, markets across the board rallied on Friday, driving gold prices down. In addition, the long weekend also made many investors more cautious, and prone to profit-taking. (Since the beginning of February, gold has been trading around $1,700 to $1,760, as investors await the outcome of the Greek debt negotiations.)
Yamana Gold Inc. (NYSE: AUY) continued its downward slide last week, falling by about 5.25% to end at $16.30. The company stock has been on the decline since peaking in late January. With a market cap of about $12.2 billion and a P/E ratio of 22.80, Yamana Gold is a Canada-based gold producer engaged in gold mining and related activities, with significant properties involved in gold and other precious metal production throughout the Americas.
I just did this video with Dave Skarica of AddictedtoProfits.net at his place in Eleuthera, Bahamas. I just spent the past few days there visiting with him, having a good time, and of course talking about the financial markets and what is going on. I see him once or twice a year and every time I do we can't help but talk about the markets.
Gold continued its downward trend last week. Uncertainty over the outcome of Greek negotiations for a bailout package prompted investors to sell off gold and hoard cash instead, following losses in the euro and US equities. Last Friday, gold prices ended at $1722.10 an ounce, marking the second straight weekly loss. Investors also believe that gold is likely to experience a correction after rising about 11% so far this year, particularly on possible negative headlines related to the euro zone debt crisis.
The Market Vectors Gold Miners ETF (GDX) rose 2.5% last Friday to close at $57.14. This also represented a 9.5% gain over the preceding week. (GDX is an exchange traded fund that tracks the performance of gold stocks.) This week’s gains came about after disappointing GDP figures and the Fed’s announcement to keep near zero interest rates till late 2014. The unresolved European debt crisis also adds uncertainty to the world economic outlook.
Gold prices maintained their upward trend last week, ending last Friday at $1,658 per ounce, a 2% increase over the previous week. (Gold traded around $1,654 to $1,664 last week.) While gold has started off with a sharp gain early last week, the daily gains subsided in the course of the week, before rallying again on Thursday, after China announced better than expected economic growth in the last quarter of 2011.
Despite the recent rally in the stock market and in precious metals, gold stocks are continuing to act very sluggish and frankly I am worried about them.
The Market Vectors Gold Miners exchange traded fund (NYSE: GDX) made a peak in September and has been in a correction ever since. It has critical long-term support at 51, which repeatedly acted as strong support for GDX throughout 2011.
In the last few weeks of December GDX broke through this 51 level and then bounced back up in the first few days of 2012.
This morning before the US stock market open spot gold is trading up over $20 an ounce as rally that started in January continues. Gold prices were on the uptrend last week, rising above $1,660 an ounce at one point before falling to $1637.70 on Friday on the back of a stronger dollar, arising from the news of the S&P downgrade of several European countries’ credit ratings.
I just did an interview with Jordan Roy-Byrne of thedailygold.com about the current action in gold and gold stocks.
Jordan believes that a bottom has put in both gold and gold stocks and told me what he thinks they will now do going forward.
Click to listen to today's podcast interview with Jordan:
Since the start of December 2011, gold prices have fallen by about 7%, although it did post its biggest weekly gain in five weeks last Friday. Last year, gold gave a total return of 10.52% in dollar terms. After reaching a record $1,923.70 on 6 September 2011, gold prices subsequently fell to a five-month low of $1,523.90 on 29 December.
Gold is generally considered a “safe-haven investment” in times of economic turmoil and rising inflation. Given the ongoing uncertainty in the international economic climate, strong demand had pushed gold prices to an all-time high last year.
I just did an interview with Matt Frailey of BreakPointTrades.com.
In this interview we talked about the development of automated trading systems and Matt shared a trading system for the GDX gold stock index that anyone can get for free. All they have to do is click here.
For the charts referenced in this interview click here.
In 2011, gold prices increased almost 13%. Prices started the year at about $1,400 an ounce and are ending the year at about $1,550 an ounce. Will this trend continue or are gold prices preparing for a decline in 2012? Many experts disagree on where gold is heading in the upcoming year. Citing everything from the economy to crises to interest rates, experts in the gold market have a wide range of expectations.
Gold stocks broke through support yesterday and are rolling over. On Tuesday the Market Vectors Gold Miners ETF (NYSEArca: GDX) closed below its recent 51 support level to finish the day at 50.06. In pre-market action today it is trading down over one percent.
At the same time gold also saw heavy selling yesterday to fall to a three month low and is trading down this morning over 25 dollars an ounce. The SPDR Gold Trust ETF (NYSEARCA: GLD) closed yesterday at 151.03.
Gold and gold stocks have been in a correction since September. During this time the Market Vectors Gold Miners exchange traded fund (NYSE: GDX) has fallen over twenty percent. Some gold stocks have fallen more than that and others have fallen less, while the price of gold itself has declined sixteen percent since it peaked on September 6, 2011.
Both gold and gold stocks have tried to put in a bottom over the past few weeks and have bounced in the past few days, but I'm worried that the correction in both will likely continue over the coming months.
I am seeing some very eerie similarities between how the US dollar index, gold, and gold stocks are trading now and how they were trading in 2008 right before the stock market crash in the Fall of that year.
Now I'm not saying the stock market is going to crash in a few weeks. In fact I think the market is likely to continue to rally this year and into January, but the US dollar index appears to me poised to put on a big rally like it did in 2008 while gold and gold stocks are right on the verge of going into a further decline.
I explain this in this video: