Commodities & Metals

Yet Higher Gold Prices Cometh (GLD, GDX, ABX, GG)

Yesterday’s surprise move from India that sent gold through the roof to almost $1,085.00 per ounce was a game changing event in gold.  Many technical analysts and chartists were looking for, or at least hoping for, a further consolidation in…

By Douglas A. McIntyre
Published November 4, 2009, 11:09am ET · 2 min read

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Yesterday’s surprise move from India that sent gold through the roof to almost $1,085.00 per ounce was a game changing event in gold.  Many technical analysts and chartists were looking for, or at least hoping for, a further consolidation in the price of the shiny yellow stuff.  Yet now that appears to not be the case.  This has broad ramifications for the SPDR Gold Shares (NYSE: GLD) and for Market Vectors Gold Miners ETF (NYSE: GDX); and it also of course will help push top-line and bottom line improvements to the likes of two of the huge players of Barrick Gold Corporation (NYSE: ABX) and for Goldcorp Inc. (NYSE: GG).  This morning we received an audio-visual slide show technical analysis presentation from one of our affiliates INO.  This was by Adam Hewison, who we have noted was making a big gold call for a move to $1,100 and then $1,200 or even higher back when gold prices were consolidating and well under the $1,000 mark.

With gold now right at the $1,095.00 mark, that video adds more outlook and data about what to expect.  Particularly considering that the $1,100 level may be a psychological figure.

All the gold plays we track as the go-to instruments are chasing the metal higher this morning.  The SPDR Gold Shares (NYSE: GLD) is up 0.85% at $107.36 and the new intra-day and all-time high for the instrument is $107.50.

The Market Vectors Gold Miners ETF (NYSE: GDX) is up 2.1% at $47.15, yet this is short of the early 2008 highs when this went briefly above $50.00.  Its two largest components are Barrick Gold Corporation (NYSE: ABX), up 1.5% at $39.76 (year high is $42.10), and then Goldcorp Inc. (NYSE: GG) is up only 0.2% at $40.21 (year high is $43.41).

India’s play yesterday was a potential game-changer and is a move into hard assets rather than into US Dollar assets.  The timing was probably well off, and many traders and investors are hoping that India caught the top or at least that will mark a key event in the currency. Unfortunately that charts are saying something else now.

JON C. OGG

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Douglas A. McIntyre

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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