Gold shares fly

I'm sorry but somebody has to explain these markets to me and why a two-day record breaking rally on the Dow is all that exciting??

Locally SA markets took off like a bat outta hell with the Gold index adding some 17%.

The gold price rallied nicely on Friday and added a few more dollars today.

On the SA market the unhedged producers such as Harmony Gold (22%) and Gold Fields (21%) had a very pleasant day. The Newgold ETF also made some nice gains but nowhere near as spectacular....

In the bigger picture, the gold index isn't a particular heavyweight (but we did touch on it in a recent post), but I think South Africans just have this affinity with Gold...

But scrape beneath the surface and the safe haven metal is the one flying and getting everyone all worked up in the last 72 hours. The reality is that the market is on the move because the US government has agreed to bail out another financial services firm....

These are the headlines on Bloomberg to prove my point:

- Citigroup Gets $306 Billion Shield From Losses, Capital After Stock Dive
- Home Resales in U.S. Fall as Foreclosures Push Prices Down Most on Record
- BlackRock Fires Four Managers, Six Analysts in First Cuts in Its History
- Fed Must Speed Aid to Auto Credit Units, Schumer Says
- AIG Auto Unit to Drop Damaged Brand to Help Sale
- New York May Lose 225,000 Jobs, Comptroller Says
- Obama Vows Bold Moves to Avoid Millions of Lost Jobs

And this is grounds for a rebound??

Two solid days of gains is pretty hard to disagree with but I still maintain that you're buying into a sucker rally in the short term.....

With the day belonging to Harmony, I thought it only appropriate to post a picture of their Doornkop operations to brighten the blog up a bit....