Gold Takes a Backseat to Oil

As we roll out of January 2013, we see oil taking a strong position over gold, which is usually the prime suspect of savvy investors.

Oil prices strengthened this week, while gold declined as investors shied away from the yellow metal, which is typically seen as a hedge against inflation and safe haven against economic turbulence.

As a rundown for the week, US oil supplies ended with a 2.8 million barrel increase, while gasoline fell by 1.7 million barrels. Crude settles at $113.25 a barrel, while Gold maintains at $1,661.50 an ounce.

IAMGold (TSX:IMG,NYSE:IAG) reports its resources are up 114 percent, which should result in somewhere between 875,000 to 950,000 ounces by the end of the 2013.

Newmont Mining (TSX:NMC,NYSE:NEM) is planning on expanding their mining efforts, and expects to produce up to 5.1 million ounces of gold for 2013.

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