Not sure which Gold index you are referring to that was up 1.9%. The HUI was up 2.8% and GDXJ (juniors) was up 2.66%.
In my opinion have a look at those Gold stocks that performed well yesterday during a sea of red. Strong yesterday, stronger today?
SLR: Was up 7% yesterday after a VERY strong couple of weeks. Their total cash cost per ounce for the first quarter was AUD$700, with AUD Gold @ $1530 this makes SLR very profitable. Simply based on increased profitability X SP I am expecting the SP to hit $1.85 to $2.55, but could easily go much higher on the back of other developments over the quarter (check out my post here). 6 months into their drilling program we have seen some great results and a resource upgrade is expected later this year.
RCO: A sleeper and very lightly traded, but also up 7% yesterday. Very few shares on offer for the lucky few that decide to buy. Also very profitable with AUD Gold at $1530, but due to a royalty payment, not direct mining. 13th of may they announced a 10cps distribution (current share price 56c), with the last day of trading on a "cum" basis being the 17th of June I expect a pile of investors to try and cram through the tight door in the next few days. Their Reefton royalty alone is worth around $7.65m per annum at today's Gold price. Only 53m shares on offer with a market cap of around $29m.
