TD Securities’ Precious Metals team put out a note on Thursday advising clients on a trade strategy for gold amid the typically quiet summer season.
“Now that we are in July there is much talk of the onset of the ‘summer doldrums’ in the financial markets,” the firm wrote. ”Precious metals are no exception and experience a fall in both liquidity and volume as participants enjoy holidays, etc.”
“However, what many may not realise is that July historically signals low prices for the precious metals complex,” TD Securities noted. ”With this in mind, we have looked at some trade ideas to take advantage of an anticipated rise in precious metal prices in the final third of the year.”
Based on this line of thinking, the firm offered the following trade idea:
Alacer Reports High-Grade Results at Çöpler
Alacer Gold (ASR.TSX) announced ongoing results from the 2011 exploration program at its Çöpler Gold Project, located in the eastern part of central Turkey. The company reported that new drilling has identified significant thick high grade sulfide mineralization from outside the recently released resource upgrade. Results included 117m at 2.0 grams per tonne (g/t) gold, 69m at 3.0g/t and 78.8m at 2.8g/t, illustrating that the new drill program is successfully meeting the objectives of growing the resource base and mine life at Çöpler. Read the Full Press Release.
* Results indicated the discovery of a significant new ore position at the south end of Main Zone.
* Multiple new intersections are expected to add substantial ounces to the current Çöpler sulfide resource.
* A significant infill drill program has commenced on the Main Zone as part of the Çöpler sulfide feasibility study.
