RBC NewsGlobe says sell Kinross, rivals now, buy them back later
2008-04-09 07:04 ET - In the News
Also In the News (C-CG) Centerra Gold Inc
Also In the News (C-JAG) Jaguar Mining Inc
Also In the News (C-WGI) Western Goldfields Inc (2)
The Globe and Mail reports in its Wednesday, April 9, edition that RBC Dominion Securities expects weakness in gold this summer and strength in the fall. The Globe's Andy Hoffman writes that RBC says take profits now. RBC believes the summer will present a strong buying opportunity for gold and gold stocks. RBC expects gold to rebound in September and October. "I've never seen the gold price strong in the summer," says RBC analyst Mike Curran. Gold hit a record high of $1,033.90 (U.S.) an ounce on March 17 but has since pulled back. It closed Tuesday at $918 (U.S.).
RBC says investors should sell into gold price strength in April and May. "Over the past 28 years, gold has typically outperformed on a monthly basis in the months of April and May. This is usually followed by a seasonal slowdown in the summer months, and an upsurge in the early fall. With this in mind, investors may crystallize profits now and take advantage of gold at lower levels within the June-July period," says RBC. Gold producers including Kinross Gold, Harmony Gold Mining, Centerra Gold, Jaguar Mining and Western Goldfields are names RBC recommends clients increase positions in during the summer price weakness.