Interesting news from the Fed yesterday. If you didn’t catch it, it was the Bernanke and friends’ promise to do something.
” The Committee will closely monitor incoming information on economic and financial developments and will (my emphasis) provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability”
In the June release, they just used the term “is prepared.” Now we all know that they got together and said “let’s change up the words.”
As for gold’s reaction, I’m not really sure. I guess it was waiting for Draghi to do something and we also have the monthly jobs report that always makes gold very volatile. So we’ll see. Gold miners, however, are showing signs of strength.
Stick with the winners for the quarters to come: Agnico Eagle Mines (AEM), Pretium (PVG), Randgold (GOLD), New Gold (NGD).
remember, email us with any questions.
Good news out of Agnico Eagle Mines (AEM). Kittila in Finland is back to full capacity. It accounts for about 13% of 2012 production and was supposed to be down for 40 days as part of a scheduled maintenance plan, but AEM finished the job after only 18 days.
The total number of days down remains unchanged for the year at 44 but they’ll likely see a better than expected second quarter. And don’t forget that any bit of credibility is a good thing in this beaten up sector.
AEM’s 2012 1Q performance was the biggest sign the company had righted the ship after the company produced more gold compared to 1Q 2011 (when they had Goldex operating). All 5 mines produced record quarterly results. Things are going well for this company and you’ll see the stock break new highs and outperform its peers once more love returns to this sector.