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February 13, 2006

Golds looking interesting, Mon., Feb. 13, 2006, 8:05 AM

After a serious pull-back in price as fund managers around the world are scaling back on all metals-related holdings, it appears that we have an opportunity to accumulate some of the gold shares.

But rather than call it as a Buy this time, I'm going to give you the tools and let you make the call.

Note on this chart that the TSX Gold Stocks index (XGD) " comprised of 17 gold producers " is significantly oversold relative to spot gold (GLD and IAU). You can see that in the much lower RSI value for the goldminer index.


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Here are several tables of trading data for a wide selection of gold and silver miners. There is an assortment of fundamentals and technical data here. What you are seeking is to follow the share price action of the group. Typically, when these stocks start to turn up or down in price, all but one or two move together. Some are facing internal issues at the time, or a major fund may have decided to switch from one to the others, etc. But by and large they move together.


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Interactive charts to help you follow the action using Relative strength Index technical indicator for a wide selection of gold stocks:

Group 1 60-Min RSI
Group 1 15-Min RSI
Group 2 60-Min RSI
Group 2 15-Min RSI
Group 3 60-Min RSI
Group 3 15-Min RSI
Group 4 60-Min RSI
Group 4 15-Min RSI

Posted by Posted by Bill Cara on February 13, 2006 08:05:35 AM | Category: Gold

Discourse

Hi Bill,

I think your bang on the money here. KGC at 50-day MA, CDE at 20-day MA, and PAAS at 20-day MA (of the 8 miners I watch). Should see a pick up in demand, as the speculators pack up their bags.

Best wishes,
DJF

Posted by: fallond [TypeKey Profile Page] at February 13, 2006 3:01 PM [link]

More interesting if they could make money with these record prices. From So. Africa:

"Harmony Gold on Monday said higher costs stopped it swinging to a quarterly headline profit as analysts had hoped, sending its stock down 7.18 percent to 97.00 rand.

Harmony, which had predicted stronger results for the December quarter, only narrowed its headline loss per share to 75 cents versus a loss of 86 cents in the previous quarter, helped partially by the higher gold price and more production.

"The gold price helped quite a bit to boost profits, but corporate
overheads and capital expenditure sliced a lot of that away," said Nick Goodwin at securities firm T Sec.

Gold mining companies had been expected to post bumper results but AngloGold Ashanti also missed expectations and ignited fears about rising costs when it reported on Friday.

"All eyes are on the rest of the earnings from the mining sector now after a few disappointments," the trader said."

Lots of commodity companies are not reporting the profits that analysts expect.

Posted by: MarkM [TypeKey Profile Page] at February 13, 2006 6:24 PM [link]