The Gold Report
Gold continued lower on profit taking having hit a 28-year high yesterday and as players tracked the dollar which came off lows against the euro.
Dollar weakness, with the greenback hitting a record low against the euro yesterday, helped the metal yesterday but the US currency has since picked up and so gold has come off.
Dollar-denominated gold moves in the opposite direction to the US currency, as its strength makes the metal more expensive for those trading in other currencies.
"Gold's seemingly tireless rally was interrupted by an unexpected rise in the dollar and the resumption of output by Mexico's Pemex," said Kitco analyst Jon Nadler...
Players positioned themselves ahead of tomorrow's Fed decision which is expected to reveal an interest rate cut in the world's biggest economy. Such a move would most likely pressure the dollar lower and increase gold's value.
Notable Quotes
"Drilling the remaining strike length could more than double INM's La Cigarra resource." (5/22/13) International Northair Mines Ltd. - The Gold Report Interview with Maria Smirnova More >
"BAR's Bug Lake zone has grown by 350m and remains open." (5/14/13) Balmoral Resources Ltd. - Erik Bermel, M Partners More >
"ROG's Burkina Faso deposit will be easy to mine, inexpensive to build and very profitable." (5/20/13) Roxgold Inc. - The Gold Report Interview with Brent Cook More >
"Our rating for GWG remains a Strong Buy; the risk is worth taking." (5/17/13) Great Western Minerals Group Ltd. - Jon Hykawy, Byron Capital Markets More >
"SVB will be the next silver company to be taken out." (5/17/13) Silver Bull Resources Inc. - Bob Moriarty, 321 Gold More >
Gold Goes Lower Following Yesterday's 28-Year Peak
Source: Thomson Financial (10/30/07)
...Players positioned themselves ahead of tomorrow's Fed decision which is expected to reveal an interest rate cut in the world's biggest economy. Such a move would most likely pressure the dollar lower and increase gold's value.
More Experts
"Drill results from BAR's Martinière indicate a growing, fertile gold system." (5/13/13) Balmoral Resources Ltd. - Eric Lemieux, Laurentian Bank Securities More >
"We reiterate our Buy recommendation on SVL." (5/16/13) SilverCrest Mines Inc. - Kwong-Mun Achong Low, Jennings Capital More >
"TGZ's Q1/13 production and reduced spending positively impacted NAV." (5/16/13) Teranga Gold Corp. - Barry Allan, Mackie Research Capital More >
"We continue to rate shares of MND Outperform." (5/16/13) Mandalay Resources Corp. - Chris Thompson, Raymond James More >
"NGC is one of the few graphite companies to have completed a feasibility study." (5/15/13) Northern Graphite Corporation - Ron Struthers, Resource Stock Report More >