Gold prices hit a 3.5-month high on Wednesday jumping to major technical resistance levels. One veteran precious metals analyst interviewed by Kitco News says the uptrend may continue, but the upside is limited.
There are some directional good news for gold, said John Doody, founder and editor-in-chief of the Gold Stock Analyst newsletter, well-known for its top-10 gold stock list.
"We have the gift-giving season for Christmas and
wedding season in India." In spite of the optimism, he emphasized he would be surprised to see gold surge above $1,200 an
ounce by year end.
Doody commented on the mining sector and how he expects to
see more mergers and acquisition activity take place. Goldcorp is undoubtedly in acquisition mode, he says. In terms of growth, it has a pretty
interesting profile - they have preserved 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."
