Gold Prices Soar Amid Global Economic Concerns

Strategic Insights -

As concerns about the global economy persist, gold prices have continued to break record levels, with major gold producers such as AngloGold Ashanti Ltd (AU), Gold Fields Ltd (GFI), and Newmont Mining Corp (NEM) all experiencing significant gains. The price of gold has risen to $1,297.00 an ounce, with the SPDR Gold Trust (GLD) also seeing a 0.5% increase to $126.58. The French banking group BNP Paribas has raised its gold price projections, expecting prices to average $1,200 an ounce in 2010 and $1,290 in 2011.

Key Takeaways:

  • AngloGold Ashanti Ltd (AU) has gained momentum as gold prices continue to rise, with its shares trading between $34.11 and $47.75 over the past 12 months.
  • The SPDR Gold Trust (GLD) has seen a 0.5% increase to $126.58, with gold prices trading up 1.8% at $1,297.00 an ounce.
  • BNP Paribas has raised its gold price projections, expecting prices to average $1,200 an ounce in 2010 and $1,290 in 2011, up from previous expectations of $1,190 and $1,245 respectively.
  • Newmont Mining Corp (NEM) is up 0.7% at $64.57, with Gold Fields Ltd (GFI) seeing a 1.2% gain to $15.34.
  • The Comtex SmarTrend Alert system, an automated pattern recognition system, indicated an uptrend for AU on August 6, 2010, at $42.83, and for GLD on August 6, 2010, at $117.96.

Statistics:

  • Gold prices have risen to $1,297.00 an ounce, up 1.8% from previous levels.
  • The SPDR Gold Trust (GLD) has seen a 0.5% increase to $126.58.
  • BNP Paribas expects gold prices to average $1,200 an ounce in 2010 and $1,290 in 2011.
  • AngloGold Ashanti Ltd (AU) shares have traded between $34.11 and $47.75 over the past 12 months.

Sources:

  • MidnightTrader (COMTEX) - September 22, 2010
  • Comtex News Network, Inc. (SmarTrend) - August 6, 2010
  • BNP Paribas (gold price projections) - September 2010
  • NYSE (AngloGold Ashanti Ltd) - September 22, 2010