After surpassing its 1980 record high of US$850 per oz. on the first and second trading days of the year, the soaring price of gold is lifting miners of the precious metal, too some of them to new heights.
Having closed out 2007 at $41.78, Barrick Gold (ABX-T, ABX-N) — the world’s biggest gold miner — climbed as high as $48.75 today before settling at $48.43 on the Toronto Stock Exchange. Newmont Mining (NMC-T, NEM-N), meanwhile, rose from $48.46 to as high as $54.39, before closing at $53.35; Kinross Gold (K-T, KGC-N), starting at $18.30, closed at $20.68; Goldcorp (G-T, GG-N) shares climbed from $33.80 to as high as $38.17 over the past two days, ending at $37.65; Agnico-Eagle Mines (AEM-T, AEM-N) rose from $54.42 to $58.87 before closing today off at $58.01; Yamana Gold (YRI-T, AUY-N) rose from $12.89 to $14.76, touching $14.81 on the way; and NovaGold Resources (NG-T, NG-X), starting at $8.10, saw a high of $10.63, before finishing at $10.33.
Gold traded as high as US$869.80 per oz. on the spot market today, with a low of US$853.80 — eclipsing yesterday’s high of US$857.
The prices broke 28-year record last time price was this high was in January 1980. As then, the price is being buoyed by record-breaking oil prices at US$100 per barrel, a weak U.S. currency, and geopolitical uncertainty.
A precious metals update, put out by Standard Bank, credited a “flight to safety” reaction in the markets for gold’s rise, caused by the climbing oil price, weakness in the U.S. equity markets, the struggling U.S. dollar, and fears of a recession.
“As the U.S. dollar outlook remains weak and (with) further interest rate cuts in store, gold could be poised to challenge the next psychological US$900 level, and subsequently, perhaps the US$1,000 mark,” said the report.
The soaring price of the precious metal made news, but in inflation-adjusted terms, the number didn’t mean all that much.
In real terms, US$850 per oz. in 1980 would translate to more than US$2,000 per oz. in current dollars.
Platinum and silver also enjoyed price rises, with platinum hitting a record US$1,550 per oz. while silver saw $US15.32 per oz.
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