Gold Price Should be $2,000, Says Rogers
PRICE NEWS The gold price hovered near unchanged at $1,379
per ounce after dropping 1% yesterday amid strength in the U.S.
dollar. The price of gold
continues to consolidate below $1,400 per ounce. Rising Treasury
yields have weighed on the gold price in recent days as, despite
remaining at extremely low nominal levels, higher interest rates
are presenting a minor headwind to precious metals. Silver gained
$0.20 to $29.00 Thursday morning after sliding 1.4% yesterday.
tied to the gold price have retreated in recent days, with the SPDR
Gold Trust (GLD) falling 1.0% this week and the AMEX Gold Bugs Index
(HUI) declining 4% off its high of last week. Notable decliners
in the gold space yesterday included AngloGold Ashanti (AU), Yamana
Gold (AUY), and Newmont Mining (NEM). Shares of AU, AUY, and NEM
finished lower by 2.6%, 2.0%, and 1.9%, respectively.
recent weakness, gold mining companies have been one of the strongest
sub-sectors of the market in 2010. Record gold prices have led to
stronger earnings and cash is building on gold miners balance
sheets. Agnico-Eagle Mines (AEM) is the latest gold producer to
boost its dividend, raising the annual payout to shareholders from
$0.16 to $0.64.
metal remains higher by 26.1% year-to-date and is on track for its
tenth straight annual gain. Legendary investor Jim Rogers presented
his latest gold price outlook in an interview with TheStreet.com.
his forecast for a $2,000 gold price this decade, but refused to
provide a more precise timeframe.
the rest of the article at GoldAlert.com
Rogers has taught finance at Columbia University's business school
and is a media commentator worldwide. He is the author of Adventure
Gift to My Children, and A
Bull in China. See his
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