Tags: Gold | miner | stock | metal

Analysts: Gold-Miner Stock Rally Presages Gains for Gold Itself

By Dan Weil   |   Friday, 11 Jul 2014 12:41 PM

Gold-miner stocks are soaring so far this year, with the Market Vectors Gold Miners ETF returning 25.9 percent.

That signals price appreciation is coming for the metal itself, gold analysts tell MarketWatch. The precious metal has climbed 10.7 percent so far in 2014.

Gold traded at $1,322 an ounce Monday morning. It hit a 16-week high of $1,346.80 Thursday amid concerns about Europe's banking system and falling stock prices.

Editor’s Note: Get These 4 Stocks Before 399% Stock Market Rally!

"Equities are getting hammered, and we are seeing a flight to safety," Frank Lesh, a trader at FuturePath Trading, tells Bloomberg. "Concerns about Europe are coming back to the forefront."

As for gold-miner stocks, they "typically begin rising or falling in advance of the metal, thereby foreshadowing the trend. They move further on a percentage basis than the underlying metal, thereby offering leverage," Brien Lundin, editor of Gold Newsletter, tells MarketWatch.

"The fact that the gold stocks are outperforming gold so far this year is a very bullish indicator for gold itself." He sees gold gradually rising to $1,400 to $1,450 an ounce.

Others are enthusiastic about the precious metal too. "Fundamentals, technicals and market sentiment are now lined up for a powerful advance," Ken Ford, founding partner at Warwick Valley Financial Advisors, tells MarketWatch.

"The gold miners have been one of the most-hated sectors in the stock market, which makes them undervalued in our opinion," Geoff Goetz, managing director at Cara Trading Advisors, notes.

"That fact, combined with an uptrend in gold has us favoring the gold-mining stocks for capital appreciation," Goetz, who's also author of the gold newsletter The Four Pillars Trading Solution, adds.

Editor’s Note: Get These 4 Stocks Before 399% Stock Market Rally!

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Gold-miner stocks are soaring so far this year, with the Market Vectors Gold Miners ETF returning 25.9 percent.
Gold, miner, stock, metal
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2014-41-11
 

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