Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199


Search Gold Prices
Gold Price
[Most Recent Quotes from]
Our RSS Feed

Gold Updates by Mail

Enter your email address:

Follow Us on Twitter
« Gold Stocks – Portfolio Building | Main | Central Banks $40 Bln Poorer on Gold Sales »

The US Dollar breaks the 200dma

USD Chart 09 May 09.JPG

As we mentioned recently the decline of the US Dollar was accelerating and yesterday it returned to take tea with its 200dma and actually penetrated it to close at 82.49. The dollar registered a fall of 1.68% in a single day as measured against the basket of currencies which form the index.

Gold was a beneficiary and the gold bugs index also reacted in a very positive manner. The HUI which more or less reflects those gold and silver producers that are unhedged has started to respond positively with any move north by gold, which is what we need to see as for some time we have had very little in the way of leverage. The gold ETFs are partly responsible as they have sucked in an unbelievable amount of investors cash which may have been invested in stocks had they not existed.

HUI vs Gold 09 May 09.JPG

Taking a micro look at the HUI we can see that over the last 12 days gold has managed a gain of 1.34% and the HUI has managed a gain of 18.13%, not a lot to go on but hopefully we can get back to a scenario whereby the mining stocks outperform the metals by a ratio of 3:1 or better. By the end of the year we want to see the HUI back at the 450 level and heading higher as gold takes out its previous high.

We are still of the opinion that silver and its associated stocks will outperform gold and the gold producers so make sure that your 'metals' element of your portfolio contains a few of both.

Sleep tight.

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address.

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector that is currently coming back to life, you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (2)

Just wondering if you could then give an update of the Silver stocks that you are holding in the portfolio

May 9, 2009 | Unregistered CommenterA


We host a separate site for silver stocks:

You can find our portfolio there, etc.

Best wishes,

Bob K

May 9, 2009 | Unregistered CommenterGold Prices

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>