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On May 13, we alerted Portfolio Strategy subscribers to the overlooked outlook for gold.

While researching Trading Ideas for Wednesday, I noticed there was a new-found flight to safety into gold stocks. It seems that The Goldbugs were getting excited over a broken downtrend line to the upside.

• Right click ON THIS LINK and select “Save Target/Link As…” to save the MP3 file to your computer.

Five gold-related companies found by the stock scan: AEM, AUY, EGO, GG and NEM. Today, we will look at three of the strongest performing companies of late: EGO, AEM, and GG.

streetTRACKS Gold Trust (GLD)

• Metals - Gold higher as weak dollar, strong oil support buying
  Gold was higher in early afternoon trade as the dollar continued to weaken against the euro and as oil prices remained steady close to their record above $127 a barrel, fuelling buying of gold as an inflation hedge.
• Gold price may double in long-term: Citigroup
  Profit-taking by investors on a firmer U.S. dollar and a seasonal slowdown in fabrication may be working against gold, but spot prices continue to remain strong near the US$920 per ounce mark. And bullion could climb much higher if things don’t change significantly, according to a new report from Citigroup.

CHARTS

Daily bar chart with 50- and 200-day moving averages

Daily bar chart with Swing Line applied

Daily bar chart with InVivo.RMI.Stops and InVivo.RMI.Histogram applied

Eldorado Gold Corporation (EGO)

• Eldorado offers to buy Frontier Pacific for C$148 million
  Eldorado Gold Corp. Monday said it would offer to buy Frontier Pacific Mining Corp. in a deal valued at C$148 million.

CHARTS

Daily bar chart with 50- and 200-day moving averages

Daily bar chart with Swing Line applied

Daily bar chart with InVivo.RMI.Stops and InVivo.RMI.Histogram applied

Agnico-Eagle Mines Limited (AEM)

• Agnico-Eagle Profit Gains 16% on Record Gold Prices
  Agnico-Eagle Mines Ltd., the gold producer boosting output fivefold in three years, said first- quarter profit rose 16 percent because of record bullion prices.

CHARTS

Daily bar chart with 50- and 200-day moving averages

Daily bar chart with Swing Line applied

Daily bar chart with InVivo.RMI.Stops and InVivo.RMI.Histogram applied

Goldcorp Inc (GG)

• Big deals not on Goldcorp’s radar
  Goldcorp Inc. has no plans for major acquisitions or mergers, and is instead looking to small deals to complement its pipeline of new mines, the company’s head of corporate development said yesterday.

CHARTS

Daily bar chart with 50- and 200-day moving averages

Daily bar chart with Swing Line applied

Daily bar chart with InVivo.RMI.Stops and InVivo.RMI.Histogram applied

The question now is this: will stock traders that have recently taken on more appetite for risk rotate some of their holdings from technology into the gold sector?

Questions and Comments

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