Miners Get Boost on Rising Gold Price

Randgold Resources Ltd. (NASDAQ: GOLD) reported earnings this morning and the company’s performance was better than expected and it forecast was also positive. Shares are up about 3.8% in the early afternoon, and share of Coeur d’Alene Mines Corp. (NYSE: CDE) are tagging along, up nearly 3%. Other shares getting traction today are Iamgold Corp. (NYSE: IAG), up 2.4%; Aurico Gold Inc. (NYSE: AUQ), up 1.8%, and Newmont Mining Corp. (NYSE: NEM), up 1.5%. Barrick Gold Corp. (NYSE: ABX), Goldcorp Inc. (NYSE: GG), and Gold Fields Ltd. (NYSE: GFI) are all up around 1%.

One thing to keep an eye on is the action on gold trading from central banks. One analyst thinks central banks will take about 280 tons of gold in the first half of this year, about the same as the last half of last year. The Fed’s assertion last week that inflation is under control has helped hold gold prices down, too. But if the global economy is picking up some strength, the inflation hawks start to appear and gold begins to glow again. That could be what’s happening today.

For the miners to prosper though, they need to control costs and hope for rising gold prices. That combination has been elusive.