Gold Price Rally “All About Re-Building Confidence”
By jturbin | January 16, 2013 3:20 AM EST
GOLD PRICE NEWS – The price of gold advanced on Tuesday amid a broad-based rally as precious metals continued to rebound from their recent weakness. In morning trading, the spot gold price climbed by as much as $15.90, or 1.0%, to $1,684.63 per ounce – its best level since January 3rd. The SPDR Gold Trust (GLD), the most liquid gold price proxy in the financial markets, rose $1.52, or 0.9%, to $163.03 per share.
Silver’s intra-day high thus far of $31.40 per ounce represented a 1.0% gain as well, alongside the price of gold. Among other precious metals, platinum futures jumped by 1.8% to $1,688.50 per ounce while palladium surged higher by 0.9% to $725.00 per ounce. In doing so, platinum reached its best level since early October of 2012, while palladium hit its highest print since February of last year.
Gold stocks fared well in conjunction with the gold price, as the Market Vectors Gold Miners ETF (GDX) climbed $0.57, or 1.3%, to $45.80 per share. The sector also outperformed the broader equity markets, as the S&P 500 Index fell by 0.2% to 1,467.61.
Within the gold sector, notable mining stocks in the black this morning included GDX components Barrick Gold (ABX), Goldcorp (GG), and Kinross Gold (KGC). Shares of ABX advanced by 1.7% to $34.82, GG by 2.0% to $37.71, and KGC by 2.3% to $9.66.
Gold prices maintained their gains this morning despite a mixed bag of U.S. economic data and a slightly firmer U.S. dollar. While the Producer Price Index (PPI) for December rose by 1.3% – below the 1.4% consensus estimate among economists – retail sales increased by 0.5%, above the 0.2% level economists were expecting. As for the dollar, it inched up by 0.1% against a basket of the world’s most-traded currencies.
With today’s rally in gold prices, the yellow metal has now risen during four of the past six trading sessions. In remarks on the recent strength, Ole Hansen – Saxo Bank Vice President and gold commentator – stated that “Gold is also being supported by the fact that we have now managed to close above 200 day simple moving average for a third day.”
Hansen added that “The debt ceiling debate should also offer some support as it once again raises the risk that U.S. growth could be hurt. Gold is all about re-building confidence and the last few days have done just that. But we’re not out of the woods yet, not before we see a break above 1710.”
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