Gold prices in yesterday’s New York trading rose from $ 1,645 to $ 1,661 / oz. Gold trading in Shanghai and Hong Kong is stable this morning, and is currently trading at $ 1,663 / oz, $ 50 / oz above the previous day’s level. Gold mining stocks are increasing worldwide.
The precious metal markets
On a euro basis, the gold price can increase strongly with the dollar unchanged (current price 49,337 euros / kg, previous day 47,887 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.