While Gold price could rally strongly from here on US dollar weakness (downbeat economic data and threat of BoJ intervention), we should be wary about gold stocks in the junior space at this point.
The reason: prospect of heavily discounted CR (capital raising).
Months ago, I highlighted imminent CRs by explorers/developers to take advantage of this window of opportunity as stock prices recovered.
Rox Resources (RXL) today raised $7.62 mil at 16.5c representing a 24% discount.
You could be buying a decent gold junior by looking at the charts, with an uptick in the price thinking it must be a good buy now, only to be blindsided by a CR move thereafter.
