BullMarketRun.ca

Gold may be in need of a rest, as we mentioned here yesterday, but it doesn’t seem to be too interested in taking one at the moment with this morning’s move to new record highs…the TSX Gold Index is closing in on its all-time high around 390 set in very early 2008…if gold should move convincingly past $1,200, then no doubt we’ll see the Gold Index break through some very important resistance…the action in the Venture Exchange, which has hit a new 52-week high today, suggests gold is going to continue to head higher as the Venture has been perhaps the best leading indicator of the gold and gold share market over the past couple of years…there’s no question, however, that gold is technically very overbought and so are many gold stocks, seniors and juniors…we still believe it’s wise to take some profits off the table in stocks that are particularly technically overbought…we were buyers of Noront Resources (NOT, TSX-V) again this morning…many investors, we believe, have failed to grasp the significance of what is developing right now with the competing takeover attempts of Freewest Resources (FWR, TSX-V) by Noront and mining major Cliff’s Natural Resources…we wouldn’t be surprised if another major grabs a percentage slice of Noront which would send Noront considerably higher…this is something that Noront may even be pursuing…much is at stake in the Ring of Fire at the moment and the coming weeks are going to be incredibly interesting…as the takeover price for Freewest increases, so does the underlying value of Noront…