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Gold Price Surges 1% as U.S. Dollar Sinks

Release Date: 
Tuesday, January 18, 2011

GOLD PRICE NEWS – The gold price surged higher Tuesday morning, rising $11.20 to $1,373.8 per ounce.  Bargain hunters pushed up the price of gold after it had lost 4.1% thus far in 2011, on the back of the U.S. dollar sinking to the lower end of its multi-month trading range against the euro. 

Silver followed the gold price on the upside, rising over 2% to $28.94 per ounce.  The precious metals complex advanced while more economically-sensitive commodities traded near unchanged.  The price of oil dropped $0.30 to $91.24 per barrel.

Stock prices were marginally weaker with SandP 500 equity futures off 2.30 at 1287.70 after a weaker than expected earnings report from Citigroup.  The gold price bounced through $1,370 per ounce after Citigroup’s earnings release.

Bearish sentiment toward the gold price has risen in recent weeks as the yellow metal backed off from its $1,431 per ounce high print posted in late 2010.  Market Vane’s bullish consensus on gold dropped to 68%, a multi-month low, while the Hulbert Gold Newsletter Sentiment Index (HGNSI), a measure of gold timers’ recommended exposure to the yellow metal, sank to 33.6% – a five-month low.

Throughout the decade-long bull market in the gold price, the yellow metal has consistently delivered a series of higher highs and higher lows.  Corrections, such as the current one, have been met with calls for the end of gold’s bull market time and time again.  Each time, gold prices have gone to make record highs as governments across the globe debase their currencies in order to gain a competitive advantage in global trade and to stimulate economic growth.  There is little reason to believe this time will be different.

Article provided by GoldAlert.com.


This article is independently provided by GoldAlert.com and does not represent the views or opinions of Goldline International, Inc. Although the information in this article has been obtained from sources believed to be reliable, Goldline does not guar­antee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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