weekly macd turned positive, page-18

Not sure about the Charts, will leave that to El Capo, but the gold price of most ASX juniors has only risen modestly since the volatility of the last few weeks, while spot gold has gone through US$1,800 and pulled back.

I have noticed in the press, quite a few commentators asking when the price of gold exploration and production companies will play catch up with the spot price.

I expect it will happen at some time in the second half, and tend to think that CHN will see 40c now before it sees 28c again, but this is only speculation, the market is too volatile to predict with any certainty or confidence.

I did like one paragraph on CHN from the recent commentary on Minesite.com though.

(Quote)
"Last year, ASX and TSX-listed Chalice finalised a positive feasibility study which investigated the potential viability of a mine at Koka on the assumption of a US$900 gold price. On those parameters Koka looks set to generate a cash margin of around US$562 per ounce, assuming life of mine cash costs of US$338. This week, as gold powered through the US$1,800 per ounce mark, the margin blewout to US$1,400 per ounce."

Now that's a margin I could live with.

Gw