Gold Price “Overdue for a Rest” Says Rogers
gold price dropped $9.00 to $1,364.50 Friday morning, sending the
price of gold down 4.0% thus far in 2011. Better than expected sovereign
debt auctions in Spain and Italy and hawkish comments on inflation
from European Central Bank (ECB) President Jean-Claude Trichet weighed
on the gold price yesterday.
stop losses are hit in COMEX gold futures, gold continues to sink.
The euro surged higher against the U.S. Dollar yesterday, rising
1.6%, to 1.334 and traded near that level heading into the open
on Wall Street.
lower in concert with the gold price once again, falling $0.10 to
$28.58 per ounce. Shares of gold and silver companies were weaker
in pre-market activity after posting considerable losses on Thursday.
The Philadelphia Gold & Silver Index (XAU) retreated 3.4% to
208.74 yesterday with notable decliners including XAU components
Barrick Gold (ABX), Kinross Gold (KGC), and Silver Wheaton (SLW).
Shares of ABX, KGC, and SLW finished lower by 5.1%, 3.2%, and 5.9%,
The gold price
also came under fire on comments from legendary investor Jim Rogers,
who stated in a presentation to business professionals in Chicago
that the yellow metal is overdue for a rest and likely
headed lower in the shorter-term. Rogers, who founded the Quantum
Fund with George Soros in the 1970s and correctly predicted the
start of the commodities bull market in 1999 has been bullish on
the gold price for the better part of the past decade.
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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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