Gold Price Should be $2,000, Says RogersGoldAlert.com
GOLD 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. Investments 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. Despite the 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. The yellow 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. Rogers reiterated his forecast for a $2,000 gold price this decade, but refused to provide a more precise timeframe. Read the rest of the article at GoldAlert.com December 18, 2010 Jim Rogers has taught finance at Columbia University's business school and is a media commentator worldwide. He is the author of Adventure Capitalist, Investment Biker, Hot Commodities, A Gift to My Children, and A Bull in China. See his website. Copyright © 2010 GoldAlert.com
|
