Since our last update, gold has rallied 8%, retracing virtually 50% of the drop. The next week or two will tell us whether this is just a “dead cat bounce,” though, notwithstanding the possibility of a near-term pullback, I think not.
As everyone knows by now, gold has experienced a dramatic decline in price the last two days taking it to its lowest prices since the onset of 2011. This follows the largest two-day drop since 1983, at the beginning of the long bear market! What happened?
As we confirm the start of the next cyclical bull, hopefully we’ve learned some lessons. This is a tough, bad business and even so in the best of times. Yet, the rewards are immense for those who are able to separate the wheat from the chaff.
Gold bullion prices fell back to $1,813 per ounce Monday lunchtime in London - roughly where they closed last week - following a sharp rise at the start of Asian trading that saw the gold price jump 0.8% in half an hour.
Why did Barrick act when and how it did in setting up the biggest gold producer takeover and dismemberment ever? Resource Investor examines the strategy, tactics, politics and timing behind the deal and its prospects for warding off competitors.