RealMoney by TheStreet.com
Focus on Gold, Not the Election
Monday November 1, 11:02 am ET
By Dan Fitzpatrick, RealMoney.com Contributor
I have written about gold from time to time, and I remain bullish on the yellow metal. While this week will certainly be pivotal for the market because of the presidential election, I'm not sure that the outcome will affect the price of gold that much.
It seems to me that gold plays more off commodity prices and bond yields -- the harbingers of inflation. President Bush has not been known for his fiscal conservatism, so I don't feel that the gold market will care much whether Bush or Kerry resides at 1600 Pennsylvania. As such, I'll just watch the price action rather than try to divine some deeper meaning from the election.
...
Canyon Resources (AMEX:CAU) has once again bounced off the $2.50 level after extreme selling pressure. In essence, stockholders were willing to exchange their shares for cash, regardless of price. Finally, demand overwhelmed supply at $2.50, and the selloff was halted.
This type of washout clears the way for further advances, because there are few losing positions above the current price. As such, overhead supply will be light. I would expect Canyon Resources to run another 40 cents or so, until it hits the mid-October congestion. At that point, the churning will begin. But continued strength in gold will probably take the stock higher.
hxx://biz.yahoo.com/ts/041101/10191680_1.html
Focus on Gold, Not the Election
Monday November 1, 11:02 am ET
By Dan Fitzpatrick, RealMoney.com Contributor
I have written about gold from time to time, and I remain bullish on the yellow metal. While this week will certainly be pivotal for the market because of the presidential election, I'm not sure that the outcome will affect the price of gold that much.
It seems to me that gold plays more off commodity prices and bond yields -- the harbingers of inflation. President Bush has not been known for his fiscal conservatism, so I don't feel that the gold market will care much whether Bush or Kerry resides at 1600 Pennsylvania. As such, I'll just watch the price action rather than try to divine some deeper meaning from the election.
...
Canyon Resources (AMEX:CAU) has once again bounced off the $2.50 level after extreme selling pressure. In essence, stockholders were willing to exchange their shares for cash, regardless of price. Finally, demand overwhelmed supply at $2.50, and the selloff was halted.
This type of washout clears the way for further advances, because there are few losing positions above the current price. As such, overhead supply will be light. I would expect Canyon Resources to run another 40 cents or so, until it hits the mid-October congestion. At that point, the churning will begin. But continued strength in gold will probably take the stock higher.
hxx://biz.yahoo.com/ts/041101/10191680_1.html
