Gold Price Nears 2012 High, “Fewer Barricades” to Record Level
GOLD PRICE NEWS – The gold price climbed on Friday by as much as $21.24, or 1.2%, to $1,789.94 per ounce, within a fraction of its 2012 high of $1,792.31 reached on February 28th. The rally in the price of gold was driven by modest weakness in the U.S. dollar – which fell 0.3% against a basket of foreign currencies – and strength in the commodities complex. With today’s advance, the gold price is now on pace to extend its weekly win streak to five and is up by 14.5% on a year-to-date basis.
Silver jumped in conjunction with the price of gold this morning, by $0.59, or 1.7%, to $35.26 per ounce. In doing so, silver also moved into position to stretch its weekly win streak to five and brought its gain in 2012 to 27.2%. However, gold’s sister precious metal remains further below its highest level from this year – the $37.58 per ounce level reached on February 29th.
Gold stocks received a boost from the gold price on Friday as well, along with renewed strength in the broader equity markets. The Market Vectors Gold Miners ETF (GDX) rose $0.89, or 1.6%, to $55.25 per share – its highest level since March 2nd. The sector has been on a tear lately and is now on track for its seventh consecutive weekly gain.
Two of the best performing widely-held gold miners this morning were Randgold Resources (GOLD) and Goldcorp (GG) – which added 2.7% to $123.34 per share and 1.9% to $47.37 per share, respectively. As for the broader markets, the Dow Jones Industrial Average (DJIA) rose by 48.19 points, or 0.4%, to 13,645.12 while the S&P 500 Index advanced by 6.02 points, or 0.4%, to 1,466.28.
Commenting on the near-term outlook for the gold price, Pradeep Unni – a senior analyst at Richcomm Global Services – stated in remarks to Reuters that “Charts hint at a major resistance at $1,787-$1,790, where we have failed thrice earlier. Thus, consecutive closing above $1,790 will be a necessity to avoid a profit-taking correction.”
However, over the longer-term Unni asserted that “With the open-ended scheme to print as much dollars as needed until the U.S. economy recovers, gold’s uptrend has fewer barricades on the way at least to earlier highs.”
A Reuters report also noted that holdings of gold exchange-traded funds (ETFs) that it tracks – which includes the SPDR Gold Trust (GOLD) and products operated by London’s ETF Securities and Zurich Cantonalbank – have increased by 272,302 ounces this week, although they have dipped from record highs reached recently.
2012-09-22 01:59:53
Source: http://www.goldalert.com/2012/09/gold-price-nears-2012-high-fewer-barricades-to-record-level/
Source:
