Source: CBS.MarketWatch.com By Myra P. Saefong,
NEW YORK (CBS.MW) — Gold futures tacked on more than $2 Thursday to close above $300 an ounce for the first time in 18 months, helping shares of most metals companies notch a healthy advance.
Gold for April delivery climbed to high at $301.50 an ounce and closed at $300.60, up $2.30. The contract hasn't closed above the $300 level since August of 2000.
Frederic Panizzutti from GoldAvenue, a multi-channel gold marketplace created by Anglogold (AU: news, chart, profile), J.P. Morgan Chase (JPM: news, chart, profile) and gold refining company, PAMP (Produits Artistiques de M�taux Pr�cieux), said the rally in gold over the last few days is "due to occur again and again this year and likely in more extended ways."
He cites several reasons, including "restored confidence among market participants" and the "need for diversification to counter poor performance in other markets."
"We expect all these factors to be positive for gold and to result in further rallies," he said, adding that his target price for the year is $350 an ounce. "We might see up and down moves before we get to that level, but we remain confident over the longer run."
Shares inch higher
Shares of major metals companies also climbed after closing slightly lower on Wednesday.
The Philadelphia Gold and Silver Index ($XAU: news, chart, profile) traded at 66.15, up 2.1 percent from the previous session. The CBOE Gold Index ($GOX: news, chart, profile) climbed by 1.3 percent to a 51.6 reading and the Amex Gold Bugs Index (HUI: news, chart, profile) reached 85.26, up 2 percent from the previous session.
Among the individual stocks, Newmont Mining (NEM: news, chart, profile) shares eased by 21 cents to trade at $24.09. Early Wednesday, the company reported fourth-quarter earnings of $31.7 million, or 16 cents a share, excluding items. Analysts surveyed by Thomson Financial/First call had been expecting EPS of 10 cents a share. See full story.
Shares of Placer Dome Gold (PDG: news, chart, profile) gained 60 cents to $13 and Barrick Gold (ABX: news, chart, profile) tacked on 59 cents to stand at $18.55.
Other metals prices mixed
In other metals news, the March silver contract declined by 2 cents to $4.345 an ounce.
Comex gold inventories were down 24,126 at 1.16 million ounces as of late Wednesday. Silver stocks were up 15,414 at 102.43 million ounces.
In other metals news, April platinum settled at $467.90 an ounce, up $11.80, while March palladium climbed by $5.15 to stand at $376 an ounce. March copper closed at 73.7 cents a pound, up 0.8 cent.
Comex copper stocks were up 685 at 286,187 short tons, as of late Wednesday.
AGE Note: The emerging gold rally still looks solid to us. Today's market close over $300 (although barely)is another healthy sign that the recent price gains may hold this time around. We've cleared the first price resistance hurdle at $295. The next price resistance hurdle now looms at $325 – $330. Although price consolidation remains a possibility, further price gains seem to be in the cards.
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