gold mining productionThe price of gold has settled into a lower range after climbing into the all-time high of $ 1226 per ounce as gold prices and gold mining stocks have been facing the headwind of a stronger U.S. dollar. Correction recently gold prices have fallen $ 115 from the high-December 3 this morning for a low print of $ 1,010.90 an ounce. Gold has dropped for four straight trading sessions, although the demo this morning, rising $ 6.52 to $ 1,121.97 while a higher silver price of $ 0.20 to $ 17.29 per ounce. U.S. dollar slightly weaker against most global currencies, trading at eight-week high against the euro. Gold mining stock trading near the unchanged level of 13.4% after correction for two weeks when measured by the Market Vectors Gold Mining ETF (GDX).

Investment bank, Macquarie, raising estimates for both gold and silver prices this morning. Their 2010 projections call for $ 1150 and $ 1100 per ounce on average gold price in 2010 and 2011, respectively. In connection with the silver, Macquarie has lifted the estimated $ 17.69 in 2010 and $ 16.92 in 2011. The research team also raised their projections industrial metals complex – increasing tin, lead, and zinc price estimates.

Macquarie’s revision has led to some changes in their target price of gold mining stocks. Among others, they have raised their target price on Barrick Gold (ABX) is 12% to C $ 54.50, Iamgold (IAG) for 26% to C $ 18.00, and Newmont Mining (NEM) by 14% to $ 48 , 80. In their research report, Macquarie affirm their positive outlook in the gold sector, said “We remain positively disposed toward gold and gold equities. We believe that periodic pullbacks (as we experienced during the last week) should be viewed as an opportunity to start or add to positions. ”

S & P 500 stock futures rose after the news last night that Abu Dhabi will pledge $ 10 billion to help state-owned Dubai World to avoid defaulting on bond payments. The funds will be used to pay debt owed by a real estate holding company, Nakheel PJSC – part of a $ 80 billion overhang of debt issued by Dubai for several years to finance their construction boom.

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