Yahoo! US, in its September 7, 2012 article, reports that Gold Stocks are Breaking Out; Commodity Report by Leading Financial Newsletter Profit ….
Extract :
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According
to Mitchell Clark, contributor to Profit Confidential, you can plainly see
the resurgence in gold
stocks, which have really turned around from what was a considerable period
of weakness. Clark notes that the majority of gold stocks have been trending
lower all year, as the spot price has been consolidating. But as expectations
for more monetary stimulus from the Federal Reserve are contributing to a
weaker U.S. dollar, Clark argues, this is helping precious metals move
higher, which is seeing gold stocks break out.
“If the Federal Reserve takes additional
action at its next Federal Open Market Committee (FOMC) meeting in September,
then the recent strength in gold prices
should carry right into 2013,” reasons Clark.
In the article “Gold
Stocks Breaking Out of Their Correction,” Clark recommends that
investors make sure the have some exposure to gold
over the near term, as he believes the market has the makings of a new upward
trend in gold prices.
However, Clark concedes that across the board,
mining companies have had a tough year on the stock
market.
“It’s as if institutional investors just
abandoned the entire group,” says Clark. “Even large-cap
dividend-paying heavyweights in the gold sector have been under a lot of
pressure.”
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