Miners rebound as gold prices ride hot streak

Financial Post | Business

The price of gold and the stocks of the companies that mine it have been on a hot streak this year.

Bullion has rallied about 10% since the start of the year to US$1,322.90 an ounce, a nice rebound following a crushing 2013 that saw prices fall 28% — their first decline in 12 years and the worst loss since the 1980s. The S&P/TSX Global Gold Index, which holds 37 gold exploration and mining names, has also joined in on the party, climbing 26.8% since Dec. 31.

The performance of gold stocks is notable because they are posting better returns than the precious metal itself for one of the few times in the past decade.

Gold stocks have underperformed bullion for seven straight years, mainly due to rising costs, lower margins and the introduction of new exchange-traded products that have made investing in physical gold easier.

There’s no doubt gold…

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Gold tops $1,300 as rally continues

Financial Post | Business

Gold, poised for the longest rally since 2011, topped $1,300 an ounce for the first time since November after signs of faltering U.S. economic growth added to the rising investor appetite for haven assets that has driven a 2014 rebound for bullion.

U.S. retail sales fell in January by the most in 10 months, and jobless claims unexpectedly rose in the week ended Feb. 8, government data showed today. Federal Reserve Chairman Janet Yellen said Feb. 11 that stimulus would be cut in “measured steps” and that the recovery in the U.S. labor market is “far from complete.” Bullion rose 70 percent from December 2008 to June 2011 as the central bank pumped more than $2 trillion into the financial system.

Gold, which slid the most since 1981 last year as some investors lost faith in the metal as a store of value, climbed 7.9 percent in 2014 amid a…

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