Yamana and Goldcorp Shares Jump 6% (AUY, GG)
Yamana Gold (NYSE:AUY) and Goldcorp Inc. (NYSE:GG) shares are both up over 6% today thanks to the price of gold hitting $1,220 an ounce.
Heading into afternoon trading both Goldcorp and Yamana shares have peaked past their daily normal averages, it appears gold is the answer to Wall Street's problems.
The U.S. Dollar has soared recently, mostly because the Euro has been hammered. A rising dollar usually drops the price of gold while a falling dollar usually spikes gold. That has not been the case this time. At some point the dollar will pull back and that could drive gold even higher or at least keep it from falling back sharply. While small pull backs will occur, it is hard to imagine how gold could see an extended drop and not continue to make new highs.
(goldalert.com) If the European debt concerns continue to escalate, it appears that the gold price and U.S. dollar will remain strong against the euro. While the price of gold has broken out to new all-time highs versus many of the world’s major currencies in recent weeks, it has yet to do so against the U.S. dollar. Further weakness in the euro and/or continued turmoil in financial markets may provide the catalyst for the dollar-denominated gold price to reach a new record high.
Yamana shares are now up 7% to $11.45 and Goldcorp is up 6.6% to $46.37, best of luck gold longs.