Saturday, 8 September 2012

QE expectations kick-start precious metals rally

Weak employment data spur the expectation on the FED initiating QE3 rather soon, which in turn prevented the stock market from collapsing on the bad news. The S&P ultimately closes with a 0.4% gain.
The expectation of further liquidity injection really kick-started precious metals. Gold had eased to below $1700 but leaped over 2% within minutes. By 4:45 pm gold is up 2.06% to $1736.3. A similar story for silver quoting at $33.67 up nearly 3%. PGM's lag, with Pt adding 0.5% and Pd up 1.25%.
(click to enlarge)
Precious metal miners enjoy the ride. We have gains outnumbering losses 4:1 on our GMP list. The list based gold miners index is up 2.82%, the silver miners index adds 2.62% and the equal weight index gains 2.32%. With the HUI adding 2.76%, HUI/Gold gains little to 0.278.
Seven double digit gains today. The lucky picks (penny stocks all of them) are:
  1. Soho Resources Corp.
  2. Cream Minerals Ltd.
  3. TVI Pacific Inc.
  4. San Gold Corporation
  5. Aura Minerals Inc.
  6. Temex Resources Corp.
  7. Harte Gold Corp.
Pretivm Resources sold off, despite decent drilling results (-5.6% at the close, the loss mitigated after plunging double digits shortly after opening). I failed to add to my position, as the price moved away from my limit. Yet, I've been lucky buying a first position in Aurico @ $5.45 earlier this week... you can't win them all.
The usual updates: gold-miner-pulse page and the miners spreadsheet  are on the way.
Have a fine weekend 

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