Gold Edges to the Upside - TheStreet

Gold Edges to the Upside

Contracts for August delivery add $4.50 at $655.10 an ounce.
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Gold prices were rallying Friday in very light trading as speculators squared up their books ahead of the weekend.

Contracts for August delivery of bullion were ahead by $4.50 at $655.10 an ounce in recent action on the Comex division of the New York Mercantile Exchange. Silver prices were rallying also, with benchmark contracts tacking on 22 cents at $12.80 an ounce.

Possibly helping boost the gold price was news that Denver-based gold giant

Newmont Mining

(NEM) - Get Report

announced it had eliminated its entire 1.85 million ounce hedge position, a sure sign that management at the company sees much more upside ahead for bullion prices.

While hedges fix the price of gold to be delivered in the future, dehedging eliminates such arrangements and allows the company's earnings to fluctuate in line with the price of gold.

Newmont also said it will dispose of much of its merchant banking unit by this time next year.

Meridian Gold

(MDG)

says it produced 80,300 ounces of gold, 870 tons of zinc and 2.3 million ounces of silver during the second quarter. Investors were shrugging, and the stock was barely moved in early action.

Elsewhere in the mining patch, Credit Suisse was busy revising its stock price targets on several names.

The brokerage upped its target on

Freeport-McMoRan Copper & Gold

(FCX) - Get Report

to $100 a share from $80, sending the stock up 0.4% at about $86 in recent activity.

It also raised its targets in the aluminum segment, with the goal for

Alcoa

(AA) - Get Report

now $45, up from $42, and that for

Century Aluminum

(CENX) - Get Report

now $65, up from $60.

Shares of Century and Alcoa were both up more than 1%.

The

streetTracks Gold Shares

(GLD) - Get Report

exchange-traded fund, which owns bars of gold bullion, was ahead 0.3%.

As for base metals, copper prices were recently were down a penny at $3.59 a pound.

Turning to soft commodities, contracts for frozen concentrated orange juice were gaining 1.4% at $1.31 a pound, while sugar prices were up 1.2% at 9.7 cents a pound. Coffee prices were slipping 0.9% at $1.09 a pound.