Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM), Randgold Resources (NASDAQ:GOLD) should rally today as the Gold price begins a move higher. Shares of ABX dropped by 1.7% to $34.94, NEM by 1.4% to $47.04, and GOLD by 2.9% to $104.28 on Monday and all look oversold.

The gold price was range bound between gains and losses near $1,750 per ounce on Monday following last week’s 2.2% advance. On Friday the price of gold climbed to as high as $1,755, its best level since early October, amid a broad-based rally in precious metals and other commodities.

In the U.S., in addition to the fiscal cliff, this week’s economic calendar contains several items likely to influence the price of gold and the markets as a whole. Durable Goods for October will be announced on Tuesday morning, along with the Case-Shiller home price index for September and Consumer Confidence for November. Wednesday’s schedule includes New Home Sales for October and the Federal Reserve’s latest Beige Book.

Pivot: 1735.00

Shayne Heffernan: LONG positions above 1735 with 1757 & 1765 in sight.

Beware: The downside penetration of 1735 will call for 1728 & 1722.

Comment: even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced.

 

Shayne Heffernan

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reached a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.Read the Terms of Service

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