Willem Middelkoop and Terence van der Hout of the Netherlands-based Commodity Discovery Fund believe that when the world's reserve currency is reset away from the U.S. dollar in the next decade, gold prices will rise and mining equities will follow.
Precious metals prices headed a bit lower at the opening this morning, mainly on the back of light profit-taking that ensued after the euro retreated and the US dollar rose owing to apprehensions about Europe and Asia.
The wholesale price of gold investment bars rose 2.0% from yesterday's low to reach $1,569 per ounce in London Thursday morning, recovering from $1,535 for the fourth time since gold hit all-time peaks above $1,900 in late-summer 2011.
Spot gold prices touched a seven-session high just shy of $1,600 per ounce in London's wholesale market early Monday, falling back to last week's finish at $1,593 as European stock markets rose for the first time in 10 days.
So the price of gold keeps falling, and it keeps falling despite the imminent failure of Greece's euro membership, the looming collapse of Europe's banking system, and the fast-looming debt-ceiling repeat and fiscal cliff in the US.
After a 17% rise last year, copper prices may struggle to record significant sustained gains for the rest of 2012’s first half but should rise later in the year, and could test the $9,000 per metric ton level, analysts for Thomson Reuters GFMS said Tuesday.
Spot dealings opened with a bid-side quoted at $1,667 in gold and at $32.50 in silver. While there is still scope for attempts at taking out overhead resistance near $1,680 and $1,704 in gold (with a possible $1,730 end-target) the going has been anything but smooth.
The price to buy gold fell hard on London's wholesale market at the start of trade Thursday, dipping near to a 2012 low beneath $1,634 per ounce as world stock markets and commodity prices also dropped.
Precious metals headed lower (all but platinum) as the US dollar picked up a tad of energy and the euro ran into a wall of overhead resistance amid the still (!) on-going crisis. Spot gold opened $10.20 lower at $1,754 per ounce.
The sell-off coincided with growing evidence of a slowing American economy. It is becoming clear that the Fed's monetary stimulus has had little economic benefit and analysts are revising their GDP forecasts downwards.