Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

African Barrick takeover talk cheers gold bulls

IMG Auteur
 
Published : August 17th, 2012
317 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...

 

 

 

 

Gold and silver have crept quietly higher over the course of the last week, with growing signs of a shift in investor sentiment away from perceived safe havens towards growth or “risk” assets. The yield on the 10-Year US Treasury Note has been a notable indicator of this, moving from around 1.4% in late July all the way to 1.8% today. This is still below the yields seen in March, but the rapidity of the rise (coupled with the US dollar’s continuing struggle to gain momentum) suggests that markets could be in for a bullish spell.

Inflation expectations are also rising, which should tempt speculators back into the commodities sector. This should have a notably bullish impact on silver; it won’t take much in the way of speculative interest in the white metal to send it soaring higher again, as discussed by James Turk in his latest King World News interview. $50/oz by Christmas? Perhaps.

Rising prices will be partly a consequence of manmade phenomenon – the racing certainty that major central banks will be forced into more dramatic money printing escapades. It is also because of natural events: the fierce draught in the American Midwest that has forced crop prices to record highs. Either way, the result is the same – a jump in commodity prices, followed by a spurt higher in producer prices, and eventually a rise in consumer prices.

Gold was also helped yesterday by news that the Chinese government is interested in buying a controlling stake in the FTSE gold-mining company African Barrick Resources (LSE: ABG). This is just the kind of merger and acquisitions activity that gold mining bulls have long been talking about as a precursor to a bull market in the mining stocks (which have as a group underperformed gold bullion over the last decade).

All in all, things are starting to get exciting again in the precious metals markets.

 

 

Thanks to Goldmoney from www.goldmoney.com
Companies Mentionned : Bullion | Gold Mining Company | Metals X | Midwest |
<< Previous article
Rate : Average :0 (0 vote)
>> Next article
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
MLM(Au-Co-Cu)MLM.AX
Appointment of Chairman
AU$ 0.05-11.54%Trend Power :
Corporate news
IAMGOLD(Ag-Au-Cu)IMG.TO
Westwood mine production continues uninterrupted following a localized fall of ground
CA$ 2.52-5.26%Trend Power :
Exploration and drilling
IAMGOLD(Ag-Au-Cu)IMG.TO
Rockfall traps nine miners in IAMGOLD mine in Quebec
CA$ 2.52-5.26%Trend Power :
Exploration and drilling
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Appoints Wendy Kei to its Board of Directors
CA$ 3.75+1.63%Trend Power :
Nominations
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Guyana Goldfields Appoints Wendy Kei to its Board of Directors
CA$ 3.75+1.63%Trend Power :
Corporate news
Kermode(Au)KLM.V
Kermode/Boss Eastgate Agreement
CA$ 0.00+0.00%Trend Power :
Corporate news
Panoro(Au-Zn-Ni)PML.V
Panoro Minerals Files NI 43-101 Technical Report on the Cotabambas Project, Peru
CA$ 0.16+0.00%Trend Power :
Corporate news
Osisko Gold RoyaltiesOR.TO
annonce la date de clôture des registres pour son assemblée annuelle et extraordinaire des ac
CA$ 17.86+0.22%Trend Power :
Corporate news
Osisko Gold RoyaltiesOR.TO
Announces Record Date for Annual and Special Meeting of Shareholders
CA$ 17.86+0.22%Trend Power :
Corporate news
Vior(Au-Co-Cu)VIO.V
Announces the Granting of 1,750,000 Stock Options
CA$ 0.07-6.67%Trend Power :
Corporate news
Comments closed