Gold stocks not sure where to go

Gold fell on Friday in New York trading from $ 1,624 to $ 1,622 / oz. Gold prices continue to drop this morning in Shanghai and Hong Kong, and are currently trading at $ 1,613, up $ 7 / oz from Friday’s level. Gold mining stocks are developing unevenly around the world.


The precious metal markets

On a euro basis, the gold price can increase slightly with the dollar unchanged (current price 47,887 euros / kg, previous day 47,621 euros / kg). On July 18, 2011, the gold price exceeded the provisional target of $ 1,600 / oz after a ten-year boom and was thus fairly valued again for the first time in over 20 years. Due to price increases and the expansion of the loan volume, the fair value for the gold price has meanwhile increased to $ 1,800 / oz. With the ongoing volatile development on the financial markets, a price range between $ 1,700 and $ 1,900 / oz is justified according to today’s purchasing power.

Below $ 1,700 / oz, the gold price remains undervalued, above $ 1,900 / oz (based on current purchasing power) a relative overvaluation begins. With gold prices above $ 1,800 / oz, many gold producers can grow profitably and increase gold production overall in the longer term.