Thursday, June 2, 2011

NovaGold (NG) (GG) (NEM) (GFI) (ABX) Lag Rising Gold Prices

NovaGold Resources Inc. (AMEX:NG), Goldcorp (NYSE:GG), Newmont Mining (NYSE:NEM), Gold Fields (NYSE:GFI) and Barrick Gold (NYSE:ABX) all closed down Wednesday, lagging behind rising gold prices responding to a fragile and weak American economy, as well as weak manufacturing numbers from China and the EU.

Gold and silver went in opposite directions on Wednesday after an employment report from the ADP said an anemic 38,000 jobs were added in May, while the figure for April was downwardly revised by 2,000.

Weak manufacturing numbers from China, the U.S. and the European Union pressed on silver, although it did gain some back as the trading day advanced.

News that Germany may get behind another bailout of the insolvent Greece was also considered a positive by the market, and could put some pressure on gold if the €60 billion expected to be lent to Greece is put into effect.

The realization the United States is in fact not in a recovery is counteracting the positive news out of Europe, and will probably be a stronger determining factor in gold and silver prices than any other consideration.

Gold for August delivery climbed $6.40 to $1,543.20 an ounce. Silver for July delivery was down 61.1 cents to settle at $37.694 an ounce.

Kinross Gold was able to close slightly in positive territory on Wednesday. Most of the major gold miners were trading up after hours.

Barrick closed at $47.28, falling $0.48, or 1.01 percent. NovaGold ended the session at $11.23, dropping $0.23, or 2.01 percent. Newmont closed at $55.67, down $0.90, or 1.59 percent. Goldcorp was at $49.46, declining $0.61, or 1.22 percent. Gold Fields ended at $16.05, falling $0.39, or 2.37 percent.

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