Gold Miners Get Crushed
Thursday gold was relativelyflat, but the miners got crushed. For some reason, the gold bears decided tosell the miners like they were going to zero. Once again, it looks like theaggressive selling was a huge mistake.
None of the miners were safe,with most falling 5% to 10%. It appeared that the sellers were chasing theshort-covering dead-cat bounce in equities. In the pre-market this morning, theminers that were crushed on Thursday are getting bid up and it would be nosurprise to see them gain all or most of their losses back today.
Gold is once again on thedoorstep of breaking out to the upside. The key number is $1,240 and with thepounding of equities in the overnight markets, we could see gold push throughthat level with ease. We are looking for a much bigger rally in gold and aretargeting $1,275 as the next level.
Contributing tokitco.com
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