The headline story on the front page of this morning’s Financial Times covers the breakout in gold above $1,600 per ounce. Meanwhile, Market Vane Corporation’s (www.marketvane.net) most recent bullish reading on gold stood at 86%, the upper end of its range in 2011. Does this mean gold is due for a pause?
The Global Precious Metals at TD Securities commented on the Page One story:
“The front page of the FT says it all this morning: “Gold price breaches $1,600 on debt fears” and the headline is above the fold so gold is officially mainstream. Looking ahead from here we’re in uncharted waters with the market very much in a bullish frame of mind and everyone is long. The real story here is that there is no compelling bear case for gold; so the path of least resistance would appear to be higher still.”
“Gold last rallied for 10 days consecutively back in 1970 and at close of business yesterday it has now achieved 11 days of uninterrupted gains. The market will probably have some brutal corrections in coming weeks but will likely continue to provide buying on dip opportunities. Gold always gives a second chance so look for a decent dip towards the break-out at $1,570-ish.”
Claude Resources Confirms Approach to St. Eugene Mining
Claude noted that as the largest shareholder of St. Eugene (with 9.7% of the basic shares outstanding), Claude is disappointed by the strategic direction of St. Eugene evidenced by the recent announcement, and subsequent suspension, of a highly dilutive private placement with Churchill Natural Resource Partners L.P. that would have resulted in loss of control of St. Eugene at a discount to its trading price. Full Claude Resources Press Release.
