Spot market gold bullion prices fell to two-week lows Friday, drifting lower toward $1,440 an ounce during this morning's London session before dropping sharply through that level, as stocks gained and most commodities fell as the Dollar strengthened against major currencies.
Strong demand for physical gold from private households continues to cause bottlenecks and price premiums. Gold traders in Dubai report premiums over the spot gold price of up to $10 an ounce for physical bullion.
A dearth of financing is culling the junior mining herd. Who will be left? Philip Ker, a mining analyst with PI Financial in Toronto, believes cash-flow generators in safe jurisdictions will continue to perform in this market.
U.S. dollar gold prices climbed back towards $1,556 per ounce Friday morning in London, the level that was until yesterday's falls the 2013 low, as stocks and commodities fell ahead of the release of monthly U.S. jobs data.
A lot of talk on the web right now says silver is significantly undervalued vs. gold. Many of these pundits and talking heads like to point to the historical relationship between gold and silver prices, sometimes known as the "ratio." Let's take a quick look at this.