Me too - the $80 jump in the POG was a bit of a surprise, as has been the way the GDXJ and GDX have performed recently.
I do not think the POG is heading under USD1200 this year, and probably not under USD1260. There is a chance there will be a pullback to the USD1280-1290 area.
QE tapering is proving to be gold positive, since gold did not benefit from the last round of QE which stimulated income generating asset prices.
There has not been any move by the new Indian govt to reduce/remove restrictions on gold imports. Perhaps something will be announced around 10 July when a new govt budget is due. Generally the gold price starts to rise before the Indian Diwali festival (which starts on 23 October in 2014) and goldies also do well. This year Indian gold buying may be a bit subdued if there is a major drought due to the El Nino effect on the monsoon season.
I have a number of goldies and would like to add to them on a pullback in the expectation that the second half of 2014 will see the POG head higher. There is always the chance there will not be much of a pullback in the gold price, so perhaps I will need to take more risk than I like.
I am a bit annoyed that SLR and PRU went for such a strong run without me on board. I am not inclined to chase SLR and feel uncomfortable buying PRU without knowing how they have progressed on a range of issues, including issues with power supply. I think PRU's costs for the quarter will look ugly, but perhaps their future is bright if they can access sufficient higher grade ore and sort out their operational issues.
Many Goldie producers are still cheap if we get a sustained rise in the POG, so happy hunting in the sector.
loki
EVR Price at posting:
87.0¢ Sentiment: None Disclosure: Held
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