Gold Hits 3.5-Month High but Upside Limited, Mining M&A Coming - Analyst

KITCO NEWS - Gold prices continue to climb, hitting a 3.5-month high this Wednesday and surging to major technical resistance levels.
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KITCO NEWS - Gold prices continue to climb, hitting a 3.5-month high this Wednesday and surging to major technical resistance levels, and although one veteran precious metals analyst says the uptrend may continue, the upside is limited. ‘I think there some directional good news for gold,’ John Doody, founder of the Gold Stock Analyst newsletter, told Kitco News Wednesday. ‘We have the gift-giving season for Christmas and wedding season in India,’ he noted. However, despite the optimism, he did say that he would be surprised to see gold surge above $1,200 an ounce by year end. December Comex gold futures have been on the rise all week, hitting an intraday high of $1,178.70 an ounce Wednesday. The editor-in-chief of the GSA newsletter, best known for its top-10 gold stock list, also commented on the mining sector and how he expects to see more mergers and acquisition activity take place. Goldcorp, he continued, is definitely in acquisition mode. ‘[Goldcorp] has a pretty interesting profile in terms of growth … They have maintained their production expansion profile in order to keep the stock price up,’ he said. ‘If they want to maintain the stock price high, in my opinion, they’re going to have to make a deal and I have some ideas on who they might go after next.’