Gold Market Holds Steady Posted by James Randolph on April 27, 2010
April 27, 2010 – All eyes in the gold market are on the U.S. Federal Reserve today as it begins its meeting on interest rates. Gold for immediate delivery is down .1 percent in London, while gold for June delivery is also down .1 percent on New York’s Comex market.
Over the past year, gold prices have been soaring higher and higher, so you’re probably wondering why the sudden stall. Analysts say traders are being cautious until the Fed announces its decision about rates. You’ll also find more and more people selling their scrap gold, and that increase is matching the slightly rising demand from investors. Right now gold investment demand hangs in the balance with these higher scrap gold scales, creating a delicate situation that could go either way the coming weeks.
In Europe, spot gold prices are down about .3 percent, while the euro is also lower due to concerns about the bank bailout package being considered by Greek officials. The dollar remains strong, however, which could mean that spot gold prices will hold steady, according to analysts.
Meanwhile, the bright spot in the gold market right now is gold miner Newmont Mining, which reported more than twice its expected first-quarter profits. Newmont is one of the gold company stocks you’ll want to keep an eye on because it looks like blue skies ahead. Since the first quarter of 2009, gold prices have increased more than 20 percent, giving Newmont $546 million in earnings for the first quarter of 2010, compared to $189 million last year. Stock prices for Newmont have risen from 40 cents per share to $1.11 per share over the past year.
Senior Staff Writer – Certified Gold Exchange