Gold Heads Higher but Yamana, Kinross, and Goldcorp shares stay Cool (AUY, KGC, GG)

Gold is now steady and holding over $1,000 but shares of Yamana Gold Inc. (NYSE:AUY) Kinross Gold Corporation (NYSE:KGC), Goldcorp Inc. (NYSE:GG) have made their gains, today they are all holding steady.

Over the past 3 months, open interest in gold and silver has increased by more than 30% while that for WTI crude oil and natural gas has increased only modestly.  In the last 2 months gold prices have ran up 12%, from the $940 range to $1,060 and its holding its own thanks to the declining Dollar. 

In the past 3 months Goldcorp and Kinross shares are up close to 7% but Yamana shares have rallied an impressive 28%.  Yamana shares are now in the $12 range and have remained so since Oct 12th.  Yamana has scored two recent price target changes during its rally in October; BMO now saying shares could get to $15.50 in the next 12 months and RBC with a $13 price target.

So can gold go higher along with these stocks?

Caesar Bryan thinks so, he is the portfolio manager at the GAMCO Gold Fund, which manages $580 million, his view is that Gold Prices may strengthen in other currencies as well.

"I don't think we necessarily need to see a lot lower dollar to see the gold price rally," he told Reuters this week.

"We could have a gold price rally in other currencies more than the dollar."

An alternative view was offered this week by Frank McGhee, head dealer at Integrated Brokerage Services LLC in Chicago.

Speaking to Bloomberg, he explained that the dollar will be the main factor in gold price fluctuations and that he can see the US currency continuing to struggle in the future.

"Gold's move is all dollar-driven. You're going to see continued erosion in the dollar. I'm very bullish on gold," he told the news provider.

Regardless of your convictions on gold,  Yamana Gold Inc. (NYSE:AUY), Kinross Gold Corporation (NYSE:KGC), and Goldcorp Inc. (NYSE:GG) are good to have on your watch list and consideration as a 'gold hedge' going forward into 2010.