Gold Primed for KILLER GAINSGold Primed for Killer Gains
2006-10-30
By Luke Burgess
BALTIMORE, MD - Yesterday front month gold futures rose to a fresh seven-week high and traded well above crucial resistance levels despite a significant drop in oil prices.
Crude futures fell by as much as $2.24, or 3.7%, in NYMEX trading today as OPEC lowered its global consumption forecast and traders speculated the cartel may not cut production as previously announced.
A drop like this would normally put significant downward pressure on gold. But not yesterday.
December gold traded all the way up to $613.20 an ounce this afternoon, a 1.8% gain on the day, before closing at $607.40/ounce. These levels are of incredible importance as the resistance level today was just between $607.30/oz. This is extremely bullish.
As we expected, overnight gold was slightly weaker trading at $602/oz early this morning. I believe a close above $610 will attract more buying, partly from speculators, taking it to levels in the $620 range. Beyond that, our next target is $640.
Gold is starting to shine once again and one thing's for sure: The bull is far from over. And more gains are in the cards, which leads me to Argentex.
Argentex Acquires More Land in Argentina
I recently updated Explosive Profits, the free report featuring Argentex Mining (OTC BB: AGXM) that you received when signing up for Gold World. Whenever you get a chance, I urge you to check it out. The new report details the company's projects thoroughly and talks a bit about why I like exploration and mining firms working in Argentina. You can see the updated report by clicking here.
In the meantime, I want to tell you all about Argentex's latest acquisition.
Last Thursday, Argentex announced that they have acquired 100% exploration rights to a brand new land package in Argentina's mineral-rich Santa Cruz province, where the company already has significant land holdings.
This new property, called Boreal, is located just 4.6 miles southeast and along the same regional structural trend of Argentex's flagship Pinguino property.
More importantly, the acquisition of Boreal fills a gap between existing Argentex-held claims and the Pinguino property. Boreal connects to both sides of Pinguino and the company's grassroots Norte, CV 1, 2 and 3 properties.
In total, 36.4 miles of epithermal silver/gold veins have been documented by Argentex's scientific team in the Santa Cruz province so far; 21 miles of that was found at Pinguino. So the geologic setting is prospective for epithermal occurrences.
Ken Hicks, President and CEO of Argentex, commented on the new acquisition saying, "The acquisition of Boreal was a strategic move solidifying our land holdings along the same northwest-southeast mineralized trend that hosts Pinguino, which has returned significant base metal, precious metal and indium values in exploration conducted to date"
Argentex said it intends to begin prospecting, sampling and reconnaissance geological mapping at Boreal during the 2006-2007 exploration season.
With 49,000 acres of land at Pinguino and more than 37,000 acres held within Boreal and surrounding claims, Argentex is now the largest holder of mineral rights along the Tranquilo trend. AGXM is already up 40% since our original recommendation, but I think the stock still has a lot of steam behind it.