Lihir Gold share price on the Nasdaq closed 2.24% lower, reflecting a marginal uptick in the relative value of the US$, and the concomitant sideways move in the POG to the key support level of round about US$420 per troy ounce.
Many gold shares quoted in New York consolidated at lower levels at the close.
If history has a lesson to teach, the G7 meeting later in January should be interesting. At that meeting in 2003, notwithstanding all the rhetoric to the contrary, an important line in the sand was drawn. The US$ began what will prove to be a quantum directional change lasting for years.
IMHO, after the G7 meeting in 2004 the US$'s decline will crank up a notch. One of the beneficiaries will be gold, which will start to reflect an increase in value in terms of most currenies.
Lihir Gold, which is based in PNG, effectively pays expenses in US$, and sells its gold in US$, ultimately reflecting vastly improved earnings as the POG increases.
Fat Prophets, the most successful Australian tipping outfit in 2003, has earmarked Lihir Gold as its hottest number for 2004.
LHG Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
