Everybody Loves Gold…Again

February 8, 2016

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(Kitco News) – It seems investors and the mainstream media are saying ‘my precious’ to the metals again. This week, gold and silver hit multi-month highs while the dollar (the thorn in gold’s side) has continued to lose value against other major currencies, including the euro, which had an impressive rally. It is a reverse scenario investors have been living with for the past few years. Since the start of the year, the dollar index (DXY) has been struggling to breach the key 100 level.

In turn, everyone is talking gold again, including making the top five searched keywords on Twitter this week.

Three-and-half-month highs were bestowed upon both gold and silver this week. Gold priced in U.S. dollars is up more than 9% since the start of the year. The metal has not only shined in U.S. dollar terms but based on Kitco’s Gold-Currency Charts, gold priced in both “hard” and “other” currencies have all posted gains in the last 30 days.

Mining stocks were among the biggest gainers of the week, with the NYSE Arca Gold Bugs index (HUI) up 15.8% for the week through Thursday’s close.

However, Friday’s weaker jobs number, which analysts expected to be bullish for gold, didn’t help the metal.. The January employment report showed the key non-farms payrolls up 151,000, following a strong rise of 292,000 in December. A reading of up 185,000 was expected.

April Comex gold settled Friday $1,157.7 an ounce, relatively unchanged on the day. March Comex silver settled at $14.778 an ounce, down 7.2 cents on the day.

But not everyone is betting on the metals. Some are more interested in other commodities. Legendary value investor Warren Buffett made headlines as his company, Berkshire Hathaway (NYSE: BRK.B), announced that it increased its exposure to oil-refining company Phillips 66 (NYSE: PSX). Phillips 66 has a market cap of $42.36 billion. Buffett has been very vocal about his disdain for gold.

Finally… Super Bowl Sunday* is coming and so is the battle for the ring! Super Bowl 50 will be as much about the bling as it is about the game, says our reporter Neils Christensen in his weekend piece. He examines how the competition around the design of the championship ring can be just as fierce as the event itself.

In case you missed it…Tech stocks got crushed today, including LinkedIn and Tableau, while CME Group, the world’s biggest futures-market operator, beats profits and sales expectations.

Have a great weekend!

* Disclosure: I am a diehard Broncos Fan! Go Peyton

By Daniela Cambone of Kitco News; dcambone@kitco.com
Follow me on Twitter @DanielaCambone

Category: Gold