XAU Chart

The XAU gold and silver index reached a high of 206 points which is just 3 points below the March high.

There is an inverted head and shoulders bullish pattern , the head at ~163 points and the neckline at 195 points which gives a target of 227.

XAU and XAU/Gold update

Dear readers ,

what can I say? , the price action of the XAU index and gold miners in general is similar to that of gold. Lately the XAU is trying to out perform gold as can be seen by the xau/gold ratio chart.

$HUI:$GOLD Buy Signal

In case you haven't noticed HUI / Gold ratio just gave a buy signal.

HUI Update

Yet another Breakout attempt, the HUI managed to climb above short term diagonal trend line resistance. A retest of the broken trend lined and 200 DMA followed.

Support around recent cycle low 317.70 further support at previous cycle low 311.78.

Technical indicators: RSI slightly above 50, PPO had a bullish crossover and seems to be trending higher.





It is likely that if the HUI can trade above 344.07 it will aim to 369.69 and further.


The bigger picture: the HUI, Gold, Silver, Etc. - All consolidated for a long period of time so giving a chance to the small technical improvement might be a wise thing to do.

Some index components enjoy a relatively high level of short interest ratio.

ShortSqueeze.com data : Eldorado Gold (EGO), Randgold Resources(GOLD) ,Coeur dAlene Mines(CDE), Hecla Mining Company (HL) ,Golden Star Resources(GSS), IAMGOLD(IAG).

Check them out (fundamentals ,TA. Etc) – they might be a good play.

Video : Gold Strategies

Mining stocks expert John Embry discuss gold stocks investment strategies with Victor Adair at HoweStreet.com.

His views might explain the recent underperformance of gold indices despite relatively high gold prices.

Video : Juniors , Mining Industry

Videos- Investing in Mining Industry, Gold, Silver, Uranium, Copper , Junior companies. Panel of mining industry experts.

Part one

Investing in Mining & Commodities for the Long Term Investor, St Andrew Goldfield, Ora Silvia.






Part 2

Investing in Mining & Commodities for the Long Term Investor, Yorbeau, starfire, valgold, sandvick.

HUI and GDX charts update

The two charts looks almost identical, the price is above the 50 MA, The 50 MA is above the 200 MA, and RSI trending up above 50, PPO lines are above zero.
However, while gold recently climbed above its December top gold indices and silver did not. The HUI Gold ratio is trapped inside a contracting triangle formation. Overall the charts look bullish but the non confirmation implies caution.

Gold mining in China

Interesting review of China gold mining industry including foreign exploration companies active in China. Goldletter International - China will emerge to the world’s largest gold producer ?

HUI / GOLD Ratio.

The HUI chart might look kind of ugly after the latest dump but technically nothing of great significance had happened. The HUI like most other gold and silver stocks indices did not go below the June lows.

Closely examining the Hui/gold ratio, notice the wave count and the implication of the wave count if true – a strong rally which should follow once the washout is over and the ABC (wave 2) correction is over. So, yes believe it or not I'm thinking a strong and sustained gold rally is just around the corner. There are many good fundamental reasons for that and the technicals are slowly creating the perfect opportunity for long trades on many time frames.


Going forward gold / silver and PM's Investors and traders should pay attention to the following market information:

1) The spot and future price of gold and silver.

2) Mining indices : HUI , XAU , GDX, GOX.

3) The price of other precious metals (palladium, platinum. etc.)

4) The price of industrial metals.

5) The price of oil and the energy complex.

6) Interest rates and currencies.

7) General commodities markets

Denver Gold Forum Webcast

Canyon Resources, Silver Standard, Dundee Precious Metals, Metallica, Nevsun, Royal Gold, U.S. Gold, Eldorado, NovaGold, Gammon, Miramar, Crystallex, Cumberland Resources, Robert McEwen, Silver Wheaton Corp., Newmont Mining and more…


Denver Gold Forum (September 25 - 27, 2006)Webcast Link

Enjoy :)

GGP - Gold Market Update

Gold Global Perspective : Gold Market Update ++

Gold vs. Gold Stocks, GOLD/XAU Ratio

Gold Stocks as a group or an index tend to be more volatile then gold. When gold is going up gold stocks tend to go up faster, when gold is correcting downwards , gold stocks get hit harder. Overall Gold & gold indices are well correlated. This can be easily seen on the first chart below which presents the last 3 year performance of Gold, The Philadelphia Gold & Silver Index (XAU) and the ratio between them. When the Gold / XAU is trending down both Gold & the XAU Index are trending up and visa versa.

The usefulness in charting the GOLD/XAU ratio is dual – the ratio can sometimes give an early sign and confirmation of bottom or top for the Gold market complex. Looking at the second chart below (Seven month $GOLD:$XAU daily candle chart) you can see a relatively clear double top pattern which implies that the gold market have bottomed.

Please note: The GOLD/XAU Indicator have served me in the past but I do expect it to stop working sometimes in the future - Gold and Silver will outperform the stocks at some point. Remember that gold stocks are highly dependent on the price of gold while the opposite is not true.

I choose the Philadelphia Gold & Silver Index (XAU) for the reason it is the most popular - traded gold stocks index. The same conclusions are generally true for other gold indices like the GDM (GDX ETF) – AMEX Gold Miners Index, the HUI – AMEX Gold Bugs Index and the GOX – CBOE Gold Index.

By the way and In case you wanted to know my favorite gold stock is the GLD.

Europe largest gold mine to be opened in Finnish Lapland

The largest gold mine in Europe is to be opened in Finnish Lapland. The Canadian mining company Agnico-Eagle has decided to start excavation of a gold deposit in the Suurikuusikko area of Kittilä.
The topsoil is already being removed from what will be an open-pit mine. The construction of a gold refinery is also scheduled to begin this summer. Test drilling has been going on in the area since 1998.
The Suurikuusikko deposit is known to contain at least three million ounces of pure gold. Geologists say that there could be even more gold ore deeper in the ground. The world market price of gold has been rising recently; one ounce, which is about 31 grammes, is currently worth more than 600 US dollars.

The mine is expected to help create more than 200 jobs in the area for at least 13 years before the deposit is exhausted.
Heino Alaniska of Agnico-Eagle, says that preparations to open the mine have been underway for a long time. He was hired by the Canadian company a year ago. Previously he had worked in Sodankylä as the local head of the Pahtavaara gold mine, owned by the Swedish company Scan Mining.
"Opening the mine requires many kinds of construction and road work, which will employ at least 300 people for about two years. In addition, the company will hold an event in a couple of weeks to recruit people to work at the mine", says Kittilä’s municipal mayor Seppo Maula.
Kittilä has also mapped out properties for housing for outsiders moving to the area to work at the mine. Kittilä gets most of its revenue from tourism, and the gold mine is seen as an effective way of diversifying the business structure.

Two years ago Agnico-Eagle acquired ownership of the shares of the Swedish Riddarhyttan Resources, which had previously studied the Kittilä deposit. Since then, the company has spent nearly EUR 10 million on test drilling and other studies.
"Opening the mine has hinged on finding the right refining method", says deputy CEO Ebe Scarcest, who visited the area in December.
The gold in the deposit is not in nuggets visible to the naked eye, which could be extracted mechanically by panning or sluicing. The ore in question requires more complicated refining methods. Original plans were for a method involving the use of bacteria, but Agnico-Eagle opted for a more traditional pressure method, which is more expensive, but it is also more environmentally friendly, as it uses less cyanide. -source

Randgold Resources Ltd. (Nasdaq: GOLD)

Randgold Resources - one of the few NASDAQ gold stocks, Randgold had a healthy pullback, two years trend line support still in place. Short term consolidation pattern around 100 DMA , buying opportunity around 18$ if it even get there.


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AMEX Launches New Gold Miners ETF GDX - by Van Eck Global

Market Vectors-Gold Miners ETF is US First and Only ETF Offering Broad Exposure to Gold-Mining Companies.


NEW YORK--(BUSINESS WIRE)--May 22, 2006--The American Stock Exchange® (Amex®), together with Van Eck Global, today announced the launch of the Market Vectors-Gold Miners ETF (the "Fund"). Now available for trading on the Amex under the ticker symbol GDX, this new exchange-traded fund (ETF) is designed to track the performance of the Amex Gold Miners Index (Amex: GDM - News) and is the first and only exchange-traded fund in the U.S. that offers investors broad exposure to the gold-mining equity market.

The Amex Gold Miners Index currently has 44 constituents, exceeding the scope of any other gold-mining-oriented index. The Index seeks to provide a balanced, diversified approach by including a comprehensive range of small, mid-sized and large companies from around the globe. The Amex Gold Miners Index was created by Amex in 2004 and is back-tested to September 1993.

While there are currently two exchange-traded funds on the market providing direct exposure to gold bullion, the Market Vectors-Gold Miners ETF is the nation's first and only exchange-traded fund to provide exposure to gold-mining shares.

"The American Stock Exchange is delighted to partner with Van Eck Global to bring this exciting new ETF to the marketplace," said Cliff Weber, Senior Vice President of the Amex's ETF marketplace. "Van Eck Global is a respected leader in offering gold-mining investment products, and the Amex is extremely pleased to have been selected to list their first ETF, which is a welcome addition to the Amex family of innovative products."

The current bull market in gold is now in its fifth year. "That is an extraordinary milestone," said Joseph Foster, who has been involved in the management of various Van Eck gold funds since 1996. "We at Van Eck believe that the vulnerability of the U.S. dollar, the twin deficits and other financial imbalances could lead to economic stress that supports a continued positive view on gold-related investments. The Market Vectors-Gold Miners ETF is designed for investors looking for the traditional diversification benefits of gold-related investments as well as the liquidity that intra-day trading access provides," Mr. Foster said.

Investors are becoming increasingly aware of the diversification benefits associated with gold and other commodity-related investments. "We believe that financial advisors and their clients will benefit from innovative ways to gain exposure to these markets," said Jan van Eck, Executive Vice President of Van Eck Global. "This new ETF underscores our long-standing commitment to commodity-related asset classes by providing a more diverse range of gold-related investment tools to the financial community."

Who Should Invest in the Market Vectors-Gold Miners ETF?

This ETF is designed for investors (institutions, hedge-fund and mutual-fund portfolio managers, as well as individual investors) seeking broad exposure to gold-mining shares. Stocks of gold-mining companies can be an effective way to leverage changes in the price of bullion. The Market Vectors-Gold Miners ETF is suitable for long-term investments; the Fund may also be sold short, thereby acting as a speculative hedging investment.

Van Eck Global is a pioneer and industry leader in commodity-related investment vehicles. Van Eck has been investing globally for more than fifty years and has been managing gold-related investments since 1968, when it introduced the nation's first gold-mining-oriented mutual fund. In addition to the Market Vectors-Gold Miners ETF, the Firm offers gold- and commodity-oriented mutual funds, variable insurance trust funds, institutional accounts and hedge funds.

The specialist for the Market Vectors-Gold Miners ETF is Goldman Sachs Execution & Clearing, L.P.

source



See also : Van Eck Seeks SEC Approval for Gold Shares ETF

Gold Market News and charts

TSX Group Announces Global Gold Index At New York Gold Show

MAY 15, 2006 (NEW YORK CITY) – TSX Group and Standard & Poor’s, the leading global provider of independent research, ratings and indices, today announced plans to create the world’s first Global Gold Index.

At the New York Hard Assets Investment Conference, TSX Group officials provided reporters with details on the new index. The Conference, one of the largest in the U.S., caters to mining professionals and international issuers. The show also attracts top mining analysts, fund managers, investment specialists and financiers from around the world.

The new S&P/TSX Global Gold Index, which will be based in Canada, will track leading gold mining companies from around the globe. Further details and a list of issuers to be included in the new index will be released by Standard & Poor’s by the end of 2006.

TSX Group is home to approximately 60% of the world's public mining companies and Canada has the world's largest mining analyst community that covers issuers on both Toronto Stock Exchange and TSX Venture Exchange. "Our exchanges have become the world's leading markets for raising equity capital for mining and as a result we attract numerous international mining participants," said Richard Nesbitt, CEO of TSX Group. "There is great value for mining issuers in a TSX listing. Mining issuers that list here tap into deep capital pools and there is extensive mining expertise in our market - from analysts, investment bankers, to investors.”

And mining companies from around the globe continue to come to TSX Group exchanges. This year there have been a total of 29 new mining listings on the exchanges. In aggregate, these new listings bring an additional $2.03 billion to the value of mining securities listed on TSX Group exchanges. The TSX's mining sector is home to 1198 listed mining companies with a quoted market value of over $259 billion.

Source: TSX.COM


If you need a Free Real time quotes and charts for gold, commodities, forex and stocks (registration is required) try ADVFN

Global Gold Hedge Book Q1 2006

• Q1 2006 Hedge Impact declines 5.0 Million Oz to 48.2 Million Gold ounces.
  
• The global gold hedge book declined was the largest seen for three years, and comes after a period of slowing dehedging.
  
• The decline was almost all due to Barrick (ABX) dehedging (4.7 Million Gold ounces).
  
• 2006 dehedging forecast revised to 11.7 Million gold ounces.
  
• The Global Gold Hedge Book prepared by Mitsui Global Precious Metals , Haliburton Mineral Services & Virtual Metals Research. - link

Randgold Resources Ltd. (GOLD)

Randgold Resources (GOLD) engages in the mining, exploration, and development of mineral properties, primarily gold principally in West and East Africa. Its properties include Loulo mine, located in Mali; and Tongon project located in Cote d'Ivoire.

LSE : RRS , NASDAQ : Gold.

Randgold Resources Ltd. (GOLD) website

CBOE Gold Index Options GOX

The CBOE Gold Index is an equal-dollar weighted index composed of 10 companies involved primarily in gold mining and production. The index is re-balanced after the close of business on expiration Friday on the March quarterly cycle.
Multiplier: $100.
Strike Price Intervals: 5 points.
Strike Prices: In-, at- and out-of-the-money strike prices are initially listed. New series are generally added when the underlying trades through the highest or lowest strike price available.
Premium Quote: Stated in decimals. One point equals $100. The minimum tick for options trading below 3.00 is 0.05 ($5.00) and for all other series, 0.10 ($10.00).
Expiration Date: Saturday following the third Friday of the expiration month.
Exercise Style: European - GOX options generally may be exercised only on the last business day before expiration.
Last Trading Day: Trading in GOX options will ordinarily cease on the business day (usually a Thursday) preceding the date on which the exercise settlement value is calculated.

Index Components

(ABX) BARRICK GOLD CORP
(AEM) AGNICO-EAGLE MINES
(AU) ANGLOGOLD LIMITED
FCX FREEPORT MCMORAN (COPPER & GOLD )
GFI GOLD FIELDS LIMITED
(GG) GOLD Corp INC
(GLG) GLAMIS GOLD LTD
(KGC) KINROSS GOLD CORP.
(MDG) MERIDIAN GOLD INC.
(NEM) NEWMONT MINING CORP

Gold global perspective

Gold global perspective