The two gold ETFs, streetTRACKS Gold (GLD) and iShares COMEX gold trust (IAU), were up 2% last week and spot gold hit a 17-year high.
Frank Holmes, Chaiman and CEO of US Global Funds in San Antonio points out:
Gold has now rallied for four consecutive weeks, despite the dollar being up for the last two weeks. This also caused the South African gold stocks to lead their peers in performance this week as the price of gold strengthened. The Rand was essentially unchanged.
Gold Fields Mineral Service came out with their mid-year update on the gold market and cited strong physical demand for gold in the jewelry industry. Investor buying could send gold up to $480 per ounce in the second half of the year.
Trading volumes in the gold stocks were also very strong this week, with some stocks exceeding their average daily volumes by more than 100 percent. Adding $200 billion to the deficit to rebuild New Orleans should be potentially negative for the Dollar.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.