Gold shares surged higher Monday morning alongside the price of gold and
broader equity markets, as the AMEX Gold Bugs Index (HUI) jumped 3.4% to 546.10.
COMEX gold futures reached an intra-day high of $1,724.90 per ounce earlier this
morning and remained up by $26.60, or 1.6%, at $1,715.10 as of 11:53am ET. The
S&P 500 Index advanced 3.1% to 1,194.87 as a better than expected report on
Black Friday retail sales in the U.S. joined forces with renewed hopes for a
more robust bailout package in Europe to send stocks and commodities higher
across the board. Several of the worlds largest gold producers posted
significant gains, with Goldcorp (GG) up 3.9% at $49.68 per share and Kinross
Gold (KGC) climbing 3.5% to $13.19 per share. Two notable laggards, however,
were Agnico-Eagle Mines (AEM) and Randgold Resources (GOLD). Agnico-Eagle
initially rose as much as 2.9% to $42.71, but surrendered its entire gain later
this morning and traded down by $0.09 at $41.43 per share. The catalyst for AEMs
poor performance was a downgrade from Canaccord Genuity, which lowered its
rating on the Canadian-based gold miner from Buy to Hold and cut its price
target to $53.00 from $98.00 per share.
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