GOLD PRICE NEWS – The gold price posted yet another record high Wednesday morning, trading up to $1,313 per ounce. Gold prices have been given a boost from the recent plunge in the U.S. dollar, which has been under heavy pressure since the mid-August Federal Open Market Committee meeting. After widespread discussion about the demise of the euro on the back of sovereign debt worries, Europe’s common currency has rallied to 1.36 against the U.S. dollar – a five-month high.
As the market has begun to price in a new quantitative easing initiative, the gold price and the rest of the commodity complex have been in a strong uptrend. The gold price has surged $156, or 13.5% since July 28 and copper prices have rallied 14% to $3.65 per pound over a similar time frame.
Gold mining producers and explorers have been under accumulation in recent weeks as investors methodically increase their exposure to the gold price. The Market Vectors Gold Miners ETF (GDX) closed a new record high yesterday at $56.66. Barrick Gold (ABX), Goldcorp (GG), and Newmont Mining (NEM) have rallied 14.2%, 12.9% and 15.5% over the past eight weeks.
A flurry of economic data is released tomorrow – on the last day of the month and the quarter. Gross domestic product figures, personal consumption data, and initial jobless claims all have the potential to move the currency markets and the gold price as investors weigh the timing and size of the Chairman Bernanke’s next money-printing campaign.
