Mining powerhouse Barrick Gold announced yesterday that it's going to spend over $3 billion buying up it's gold hedges. In other words - they're going to be buying up a whole lot of gold.While on the surface this appears to be yet another bullish sign for gold, Elliott Wave's Steven Hochberg had a great line today - where was this exhuberance for gold's upside when it was trading $300 lower?
According to the article linked to above, Blackmont Capital mining analyst Richard Gray called the risk a "steep" one, but worth the risk.
Apparently Richard's trading out of a crystal ball that I don't have!
What do you think - is this a classic case of the market movements generating the news? Or is gold truly leaving the station for the moon?
More recent gold coverage:
3 comments:
To the extent that Barrick is an insider, it's bullish. OTOH, Barrick has been wrong until now.
Hi Brett
Well Gold closed over $1,000 on a weekly basis and looks to be on the cusp of an impressive rally - I hear you on the US dollar strength, but its been threatening to rally all summer to no avail, so we have to humbly follow the price action in the meantime.
Brett, can you email me at: howtospreadtradetowin@yahoo.com
Regards
Al
Al, thanks for the comment. Good point - the trend is in place until it's no longer in place. And for right now, it's up for gold, up for equities, and down for the dollar.
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