Many are listening...
_____________
GOLD RALLIES: Led by unsettled political environment in the United States and continued concerns regarding U.S. financial exposure to the dubious economic situation in Latin America (Brazilian Bovespa down 14.6% today), gold has made its largest one-day advance since January. Spot gold on the New York Mercantile Exchange has risen $6.70 to $290.70 per share, a 2.4% intraday improvement. While U.S. treasuries still viewed as safe-haven against international financial woes (long-bond up 38 ticks this afternoon), today's sizeable decline in the greenback (-1.8% vs Japanese yen and Germany mark) has made dollar-priced gold more attractive to investors using foreign currencies to purchase the commodity. Reemergence of gold buyers has lifted the Philadelphia Gold & Silver (XAU) Index 9.9% to 66.88. Behind the advance are names such as Ashanti Goldfields (ASL +22%), Getchell Gold (GGO +23%), TVX Gold (TVX+ 18%), Newmont Mining Corp. (NEM +16%), Newmont Gold (NGC +15%), Echo Bay Mines (ECO +15%) and Coeur d'Alene Mines (CDE +13%). The XAU Index has been in free-fall since 1996 peak of just over 150. Pressured by low inflation , central bank selling and relatively stable global political environment, the Index has fallen more than 55% from its high. |
