Gold stocks set new highs as gold continues to climb

Posted Jan 4th 2008 12:15PM by Eliza Popescu
Filed under: Forecasts, Indices, Barrick Gold (ABX), Economic Data, Goldcorp Inc (GG)

As Michael Fowlkes discussed yesterday, gold prices have been rising strongly over the past few days as fears about a possible recession increased and the U.S. dollar continues to weaken. Gold for February delivery rose in the previous session $9.10 to end at $869.10 an ounce on the New York Mercantile Exchange. There have been a handful of notable names that have benefited from these news to trade up to new highs.

Gold has been strong lately, and gold stocks have been following gold's lead. Gold had a very strong day yesterday, with prices breaking through a new record for the second straight day. Josh Bridges, analyst at JP Morgan, anticipates the new year would be a strong one for gold as "it must be remembered that gold is typically a late-stage performer."

As gold moves higher, so have gold stocks, with some big names trading up to set new 52-week highs yesterday evening. Here are a couple names of interest making strong moves yesterday:

Streettrack Gold Trust (NYSE: GLD) – set a new 52-week high yesterday of $85.94;
Barrick Gold Corp. (NYSE: ABX) – traded up to new 52-week high yesterday of $49.33;
Agnico Eagle Mines Ltd. (NYSE: AEM) – set a new 52-week high yesterday of $59.45;
Goldcorp Inc. (NYSE: GG) – set a new 52-week high yesterday of $38.55.

As the market continues to deal with mounting economic concerns and oil prices continue to gain ground do not be surprised to see gold continue to move higher into next week.

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.

Tags: ABX, AEM, Agnico Eagle Mines, AgnicoEagleMines, Barrick Gold, BarrickGold, GG, GLD, gold, Goldcorp, high, inthenews, Streettrack Gold Trust, StreettrackGoldTrust