ABX Beats Expectations; Gold Price Up

It’s that time of year again…earnings season.  Quarterly earnings reports came out for major gold producer, Barrick Gold Corp (ABX).  While Goldcorp and Nevsun were in-line with analysts’ expectations, ABX surpassed with better-than-expected earnings.  This was mainly due to lower costs and a powerful copper price hedge book.  With today’s increase in the gold price, gold stocks are primed for greater increases. 

For the day, the spot gold price is currently at $954.11.  This represents a gain of $19.50, or about 2.1%.  This is due to the consistent devaluation of the U.S. dollar.  A very powerful move was made as GDP growth increased, along with gold price.  Leading some to ask, “which economic indicator should I follow regarding the state of the economy?”

Gold Price Dives Tuesday

The gold price has dropped a significant 1.8% already and now stands at $936.73. This downward trend has been continuing since the market opened with a lower than expected gold price. Oil prices are also falling as the US dollar is increasing its value at the expense of gold and oil prices. Positive news regarding housing starts and housing prices are fueling the gold sell-off. HOWEVER, this cannot sustain. Gold price will definitely recover by the end of the week and I believe it is set to make record gains for 2009. Like many investors, I am very bullish on gold price and must state that my position is conclusively BUY (especially right now with gold prices cheaper than normal and undervalued).

Gold Price Up on Weak Dollar

With the gold price still staying around $953, the gold price looks to have a very good week.  Also, the US dollar has been falling at record paces as the EUR/USD is at 1.425.  This is quit high and will trigger an even greater gold price in the future.  Copper is also up this month by about $4.50 per pound.  The gold price has also been reacting to the Fed’s recent moves.

As its chairman moves around the country asking for support, the gold price continues to rise.  The authors at GoldAlert.com have been quite accurate in their predictions of a rising gold price.  I would strongly suggest that their stories be read each and every day.  Also, some major gold stocks will be releasing Q2 information.  Stock prices may be bolstered by this increasing gold price and dropping cash costs.

Gold Price Affects Currency

This article explains how the gold price impacts currency price and volatility.

While many people choose to shy away from gold during periods of minimal low currency volatility, gold never performs poorly. While blunt, the gold price is not impact by currency price. Gold price is impacted by volatility and usually falls as volatility increases. The simple point to be made is that gold is quite desirable during periods of high volatility. Now, we must address the true issue: buying gold during periods of low currency volatility. A comparison of currency volatility to gold price is key.

Gold price has historically remained high and kept the gains achieved during high volatility periods. While the Euro was gaining steam at a steady rate, gold plateaued. While the dollar is very shaky, gold spikes. In the past ten years, gold has increased more than 250%. What does this tell us? Gold is a long-term holder of value. We should not shy away from gold just because steady currency seems like a better option. Gold does not falter; especially, when gold prices are gaining.

Gold Price Falls Short of $950

As you should know, the gold price does not react to the typical supply/demand model that most other goods can be seen through.  Bloomberg came out with a recent article about the gold price and the silver price. The bottom line is that only demand can shift the gold price. Check out this gold price article that truly explains what I am getting at. When investor demand changes, this is the greatest shifter for the gold price aside from any miniscule changes in the already MASSIVE supply of gold.

Gold Price Up and Holding…

The gold price is certainly up for today and seems to be holding its position. This Friday/weekend gain is very strong and has certainly helped boost the gold stock share prices. As the gold price goes up, the revenue margins for mining companies are widened as cash costs often stay the same. If these costs do change (due to inflationary or deflationary settings) the increase in gold price can trigger sustained revenues or much higher revenues depending on the change in cash costs. As of now, cash costs are mainly unaffected and gold stocks should see a quick lift. A more powerful push will come should the gold price jump over the next few months.

Gold Price in the Great Depression

Starting in 1929, the world would witness one of the greatest economic downturns ever recorded. Originating in the United States, the Great Depression began in late October with an unprecedented stock market crash. How could a twentieth century economy nearly collapse? The Great Depression provides an example of falling markets and widespread poverty. However, one significant outlier existed in the market at the time: the gold industry. Exemplified through a brief analysis of Homestake Mining, gold industry stocks experienced extraordinary gains in share price and dividend payouts. Another thing I was wondering about is why the historic gold price looks the way it does. Gold standard????

Hello All Gold Price Watchers

Sooo I jsut started out and I am really trying to learn more about gold prices and what’s going on in the gold market.  Any comments on this gold price link? Let me know as I just saw this on another blog and I am just trying to learn.