If Gold Bounces Up, Go Long Yamana, SPDR Gold ETF, and Kinross Gold (AUY, GLD, KGC)
Gold is range bound trading on dollar and euro weakness, should the trend start up then its time to go long Yamana Gold Inc.(NYSE:AUY), SPDR Gold Trust (ETF) (NYSE:GLD) and Kinross Gold Corporation (NYSE:KGC).
Spot gold was at $1,106.45 an ounce by 0256 GMT, up $3.50 from New York's notional close on Tuesday, when safe-haven dollar jumped after U.S. consumer confidence sagged to a 10-month low and ignited worries about demand for commodities. Low volumes meant that bullion was prone to sharp movements but dealers noted buying interest from jewelry makers in parts of Asia. Gold was around 2 percent below a 1-month high around $1,130 an ounce hit on Monday.
(Reuters) "It looks like there's some buying around these levels. But Bernanke has a speech tonight and tomorrow, so nobody wants to commit too much," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong. "I think for this week trading is still range-bound at $1,100 to $1,130. Sentiment is flat. It's neither bullish nor bearish," he added.
With gold at a stalemate its time to look over some of the best options for going long on the precious metal, three ways to do that are Yamana Gold Inc.(NYSE:AUY), SPDR Gold Trust (ETF) (NYSE:GLD) and Kinross Gold Corporation (NYSE:KGC).
Yamana (AUY) is trading near the low end of its 52-week range, shares closed at $10.12, its 12 month range is $7.27 to $14.37.
Kinross (KGC) closed at $17.66 today, its shares have traded between $8.41 to $23.91 over the past 52-weeks.
The SPDR Gold Trust (ETF) (NYSE:GLD) ended the day at $107 a share, its has a 52-week range of $84 to $119 and since the beginning of December the ETF is down 4%.
George Soros' hedge fund more than doubled its bet on the price of gold during the fourth quarter, a portion of the firm's total U.S.-listed equity holdings of $8.8 billion at the end of 2009. Soros Fund Management owned 6.2 million shares of SPDR Gold Trust (GLD.P) -- an exchange-traded fund that owns gold bullion -- at the end of the year worth $663 million. That was up from 2.5 million shares at the end of the third quarter.
U.S. gold futures for April delivery added $3.8 an ounce to $1,107 an ounce after falling almost $10 in late trade on Tuesday. The contract rallied to a 1-month high on Monday.
Links to Google Finance (AUY, GLD, KGC):
|Ticker||Company||Price||Change||Chg %||Mkt Cap|
|AUY||Yamana Gold Inc. (USA)||$10.12||-0.35||-3.34%||7.42B|
|GLD||SPDR Gold Trust (ETF)||$107.89||-1.18||-1.08%||39.36B|
|KGC||Kinross Gold Corp. (USA)||$17.66||-0.66||-3.60%||12.29B|