Chart courtesy of Stockcharts
The September $65.00 PUT contracts in Randgold Resources Limited (GOLD) that we purchased on the 11th June 2009 for $5.00 per contract have continued to improve and closed at $7.20 today up 41% in 5 days.
Randgold fell again $1.62 or 2.39% to close at $66.05 as we can see on the above chart.
Randgolds fall today was on the back of falling gold prices and a rising dollar to the benefit of our PUT contracts. The technical indicators appear to have peaked and are heading south so its a case of so far so good.
Randgold Resources (GOLD) was downgraded today by analysts at BMO Capital Markets,the brokerage reduced GOLD to Market Perform from Outperform.
Also note that instrumental in giving the dollar a boost was this remark by Russian Finance Minister Alexei Kudrin:
NEW YORK, June 15 (Reuters) - The U.S. dollar rose broadly on Monday after Russia expressed confidence in the greenback as the world's reserve currency, while concerns about the euro zone economy undermined the euro.
The single European currency fell below $1.38 to its lowest level in more than three weeks after the European Central Bank said euro zone banks will probably need to write down another $283 billion.
Speaking on the sidelines of a Group of Eight finance ministers meeting in Italy, Russian Finance Minister Alexei Kudrin said the dollar's role as the world's main reserve currency is unlikely to change in the near future.
The comments followed statements from a top Russian central bank official last week that it would cut the share of U.S. Treasuries in its reserves. But Kudrin's comments alleviated concerns that major emerging market countries may be diversifying away from the dollar ahead of a summit of leaders of Brazil, Russia, India and China (BRIC) in Russia on Tuesday.
Gold itself closed at $928.00 registering a fall of $10.00 on the day adding more downward pressure on the precious metal producers.
Randgold Resources Limited trades on the NASDAQ under the symbol of GOLD and on the London Stock Exchange under the symbol of RRS.
Have a sparkling day.
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