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Barrick Gold said after the close today that it plans to raise up to US$3.5B through a share offering that will eliminate most of its remaining Gold hedging contracts, giving the world’s biggest gold producer full exposure to changes in the precious metal’s market price. The Toronto-based company announced the move hours after Gold climbed above US$1,000oz for the first time since March 2008. Investors’ renewed interest has been ascribed to weakness in the US$ and continuing low interest rates that have dampened returns on holding cash and other liquid investments. Barrick explained its move by pointing to an “increasingly positive” outlook for Gold. It added that it expects “global monetary and fiscal re-inflation will be necessary for years to come, resulting in an increased risk of higher inflation and a future negative impact on the value of global currencies”, also it cited a continuing robust balance between the metal’s supply and demand. Read more

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US President Barack Obama will nominate Ben Bernanke to a 2nd term as Chairman of the US Federal Reserve Tuesday, keeping him on the job of guiding the world’s largest economy out of its deepest downturn since the Great Depression. Bernanke, whose appointment to a new, four-year term as head of the US central bank must be confirmed by the Senate, has flooded crippled financial markets with hundreds of billions of US$s in Fed liquidity and stepped in to attempt rescues of failing financial institutions such as Bear Stearns and AIG. Obama’s Democrats control the Senate, but Bernanke has faced criticism from lawmakers of both parties who say he has gone too far in extending Fed support that will be difficult to unwind, threatening future inflation. Investors have generally given Bernanke high marks on the job and had widely expected him to be kept on by Obama, although the announcement was not expected until later this year.

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Gold futures on the COMEX Division of the New York Mercantile Exchange closed higher on Wednesday as crude oil jumped sharply upon unexpectedly plunging oil inventory. Silver finished lower, but platinum rose. Gold price for December delivery climbed US$5.60, or 0.6%, to finish at US$944.80 oz. The Energy Information Association reported on Wednesday that US Crude Oil in storage for the week ended Aug. 14 fell by 8.4M bbls. This is much lower than economists’ expectations of a 1.3M bbl increase. Sparked by the tightened oil stockpile, benchmark Crude Oil for September delivery soared US$2.47, or 3.6%, to US$71.66 bbl by the end of Gold floor trading time. Worries on inflation helped the yellow metal metal regain strength and close the session higher. In the currency markets, the Dollar index, a gauge measuring the greenback’s value against six major currencies, stood at 78.438, down from the intra-day high of 79.225 in the morning session. A weaker US$ is considered to boost Gold’s demand as the dollar-denominated yellow metal becomes cheaper. December silver finished at US$13.909 oz, down 8.6 pennies. October Platinum rose US$9.30 to US$1,241.40 oz.

Popularity: 2% [?]

Gold futures dipped on Wednesday as weaker equities prompted funds to consolidate recent profits, but the market drew support from a renewed appetite for risk among investors. Platinum and palladium, boosted this week by strong July car sales, rose on supply worries because of a possible strike at the power utility in top platinum producer South Africa. Renewed interest from investment funds buoyed commodities and equities alike, as investors focused on economic recovery rather than deflation which had decreased inflation-hedge buying in Gold earlier this year. US December gold futures settled down US$3.40 at US$966.30 oz on the COMEX division of the New York Mercantile Exchange. Spot Gold dipped to US$966.20 an ounce at 3:30 p.m. EDT from US$966.75 oz late in New York on Tuesday.

Popularity: 2% [?]

Gold futures on the COMEX Division of the New York Mercantile Exchange ended higher for the fourth session on Friday, buoyed by the record low interest rate and a weak dollar. Silver and platinum went up, too. Gold price for August delivery gain US$1.50 (0.2%) closing at US$ 941oz. It is the first time for the yellow metal stands above US$940 in almost three weeks despite profit-taking ahead of weekend pared the gains after the contract touched its intraday high of US$949. Savvy market observers say that Gold’s appeal of hedging inflation continued being fueled after the Fed Reserve decided on Wednesday to keep the benchmark interest rate at a record low level between zero and 0.25% “for an extended period.” In response to a report released by People’s Bank of China, the US$ went down and provided some bullish support to the precious metal earlier in the session. The Chinese central bank reiterated that it will push the reform of the international currency system to make it more diversified and lessen US$’s role as the world’s reserve currency. September Silver finished at US$14.156 oz, up 12.4 cents. October Platinum rose US$13.70 to US$1,210.70 oz.

Popularity: 3% [?]

Gold is a role model, a leader if you will last week it rose hitting a 6 month high. In its role as a leader, some analysts are saying that Gold is telling us that the new team will succeed in turning this recession around, and inflation will eventually follow, which will push Gold’s Bull Market to higher levels in 2009 and into the years ahead. Gold is in a class by itself, as it ended 2008 with a gain and it continued to rise to a six-month high recently in spite of the rising US$. Gold is a barometer for the world’s financial stability, it is considered real money. Cash is king in the current cash strapped environment, and Gold is the ultimate cash vehicle becoming a alternative to holding cash and it’s showing the growing mistrust in the US$. Investors feel safe holding Gold because it does have real value and it is widely believed that with the US economy contracting at the fastest pace in 27 yrs (the most in 4Q since 1982) uncertainty will continue keeping Gold strong. Technically Gold’s ongoing bull market turns 8 yrs old this month. The 8 yr mark has been a consistent low time for Gold going back to the late 1960s when Gold began trading in the free market. Important lows vary from 7 years to 8 ½ years following the previous low, with the average being eight years. This recurring pattern indicates that the low could have been last November’s low, three months shy of 8 yrs. The long side would be a low this summer. The point is that Gold is near or at an important low time. This means that buyers will be buying on weakness (dips) this year speculating that it is reaching for a record high.

Popularity: 8% [?]