3 High Momentum Junior Gold Stocks

….read about the three HERE

3 High Momentum Gold Mining Stocks

….read about the three HERE

Buying Opportunities In Gold Market

Market fundamentals indicate a gold forecast price of $1,500 an ounce by the end of the year. Due to its recent strong rise, however, the dollar-denominated gold prices are poised to correction. This can be a golden opportunity for investors to buy or add to their favorite precious metal stocks or their physical holdings.

Much of the recent power behind rising gold prices was currency wars. Central banks all over the world are careful and cautious about a strong currency when the economies are weak. One advantage of a weak currency is that nations can inflate their debt away. They care much less about a strong currency when the economy is healthy. The US dollar has fallen sharply, as the Federal Reserve is acting fast and bold among others.

The outlook is quite bullish for gold as the fundamentals behind it remains strong. In short term, however, gold is overbought. The investment demand dwindles when prices hit new records repeatedly and much of the Fed’s bold actions on quantitative easing, aka printing money to buy bonds, may have already priced in.

When US dollar strengths against a basket of currencies gold loses as much as 3% and does not regain it when dollar falls back to its previous level. The chart below indicates the overbought situation the yellow metal is experiencing in close comparison to the underlying currency, the US dollar.

more SeekinGold HERE