Weekly Trends: June 29, 2013

Gold Update, Market Commentary, & Northern Shield Resources

Commodity Talk

Yet another bear flag in gold broke down this week. Gold opened the week near $1300 and moved lower breaking through the $1250 level that we targeted in last week’s edition of Weekly Trends. We expect gold to consolidate in the $1200-$1270 range until Friday next week when the U.S. employment numbers for June are released. Investors will be watching these numbers closely as a positive jobs number will increase the chances of tapering fiscal stimulus later in the year.

Gold price continues to fall following QE tapering rumors

Gold price continues to fall following QE tapering rumors


It was a tough month for the Venture as the index shed nearly 100 points and closed out the month at 881. The TSX Venture new highs – new lows indicator put in a spike low of -88. Investor sentiment for the TSX Venture has become increasingly pessimistic as more companies have put mines on “care and maintenance” due to low precious metals prices. The old saying, “When there is blood in the streets, you buy.” is tough to swallow right now. Playing the waiting game seems like the best strategy.

TSX-V makes new low for the year

TSX-V makes new low for the year


logo (1)Northern Shield Resources (NRN.V) is an interesting exploration stock that caught our eye this week while doing research for our next VC+ TickerScores release on platinum and palladium companies.

The first thing that jumped out is that the stock has tripled since early April (7 cents to 21) in an extremely weak market for TSX Venture companies. The company is active with 3 different drill programs on what look like exciting exploration properties. Each project looks to have good potential based on air borne surveys and soil sampling. It is interesting to note that several majors have a stake in Northern Shield and management holds 12% of the shares. The question is what will the drill rig turn up?

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