Gold London PM Fix (U.S. $686.50)

My Gold blog in February/07 said I thought rising operating costs could bring on a profit squeeze for gold producers. If you are still long gold stocks, you now know what I was talking about. The price of gold has done nothing, but gold shares have been hit hard.

I'm not uncomfortable with the price of Gold moving sideways here, but I see no investment potential in that. I would like to see gold drift off to the $600 area over the coming year or so. That might possibly open up an entry point for re-accumulation of gold shares.