Gold up overnight (high of US$664 so far) and copper showing...

Gold up overnight (high of US$664 so far) and copper showing continuing strength. The strong overnight buying on the floor of the metals exchanges seems to signal the end of the recent softening of sentiment.

Just finished watching Squawk Box with analysts predicting companies with exposure to both gold and silver but also with base metals such as copper and zinc are the stocks to follow. Naturally good for large and medium caps (that are down a little from 12 month highs) but most gains to be had amongst the juniors that are producing or near production.

Junior miners (with few exceptions) have not been the flavour of the day over the last couple of years but a rebound of precious and base metals would see a resurgence in interest. Some analysts are predicting gold to surge to new highs in the lead up to the Indian wedding season, strong buying from China and from oil money. The recent lows will not be seen for a while. Demand for base metals will continue to be strong with inventories continuing to be tested.

Tectonic is now even more likely to be seen as significantly undervalued by segment investors as interest returns. This week will be a good one for mining stocks and the timing could not be better if TTR would happen to release some positive news as well.