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Monday
Nov122007
Gold Prices and Gold Stocks Correcting
Monday, November 12, 2007 at 05:44PM
Today we could be seeing the beginning of a small correction in gold and gold stocks.
The gold price is down over $26 and the HUI gold mining index has lost over 25 points whilst the XAU has dropped more than 10 points.
The drop in gold prices is due mainly to a jump in the US dollar, which has made gains to rise above 76. The USD has been taking a severe beating recently and as we wrote just one week ago in an article entitled “US Dollar: Bear Rally Due?”, the index was oversold and could look to make a small bear rally before continuing on its path downwards.
Having bought heavily over the summer, particularly in late August, we took some profits on a selection of our gold stocks about a month ago. This gave us some cash on the sidelines (currently only about 13% of our entire portfolio is cash) which we could be able to use to add to our holdings during this correction. Agnico Eagle is now below $50 having lost over 6% today, Kinross has lost over near 6% and Yamana Gold has also lost over 6%.
When we see a buying opportunity we will immediately let all our readers know. This opportunity could be upon us very soon so stay updated by subscribing to The Gold Prices Newsletter FREE of charge, just click here and enter your email.
The gold price is down over $26 and the HUI gold mining index has lost over 25 points whilst the XAU has dropped more than 10 points.
The drop in gold prices is due mainly to a jump in the US dollar, which has made gains to rise above 76. The USD has been taking a severe beating recently and as we wrote just one week ago in an article entitled “US Dollar: Bear Rally Due?”, the index was oversold and could look to make a small bear rally before continuing on its path downwards.
Having bought heavily over the summer, particularly in late August, we took some profits on a selection of our gold stocks about a month ago. This gave us some cash on the sidelines (currently only about 13% of our entire portfolio is cash) which we could be able to use to add to our holdings during this correction. Agnico Eagle is now below $50 having lost over 6% today, Kinross has lost over near 6% and Yamana Gold has also lost over 6%.
When we see a buying opportunity we will immediately let all our readers know. This opportunity could be upon us very soon so stay updated by subscribing to The Gold Prices Newsletter FREE of charge, just click here and enter your email.
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