Mining powerhouse Barrick Gold announced yesterday that it’s going to spend over $3 billion buying up it’s gold hedges. In other words – they’re going to be buying up a whole lot of gold.
While on the surface this appears to be yet another bullish sign for gold, Elliott Wave’s Steven Hochberg had a great line today – where was this exhuberance for gold’s upside when it was trading $300 lower?
According to the article linked to above, Blackmont Capital mining analyst Richard Gray called the risk a “steep” one, but worth the risk.
Apparently Richard’s trading out of a crystal ball that I don’t have!
What do you think – is this a classic case of the market movements generating the news? Or is gold truly leaving the station for the moon?
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