Raw Greed Gold Update

Posted on November 2, 2006 , filed under Stocks | Print This Post

Yamana Gold, Inc. (AUY), briefly touched my short-term target sell price of $10.50 in this mornings trading. I see AUY having a chance at crossing $11 in the next month if gold maintains its bullish trend.

Tanzanian Royalty Exploration Corp. (TRE) is lagging behind AUY in price recovery during gold’s current upswing. I expect to see TRE having a chance at crossing $7 in the next month. My short-term target sell price for TRE remains unchanged at $8.

Gold is currently trading at $620.20. In the past few months we have often seen gold trading with a $10 or greater price difference over a 24 hour period. These wild price swings have created a volatile gold market. In the short-term I see these unstable conditions continuing. In the long-term I expect to see bullish momentum stabalize in gold. I see the potential upside for gold at $640 and the potential downside to $580 in the next month. I still expect gold to close above $600 levels by the years end.

*Disclaimer: The author currently owns 1000 shares of AUY purchased at $7.91 and 7500 shares of TRE purchased at an average price of $5.74.

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