Friday, May 22, 2009

New Gold (NGD): the leverage play

Gold spot shoots, and so does NGD.

3 month chart

In the recent IKN Weekly, the leverage NGD has to gold was discussed and, although not called as a buy, it was pointed out that the price target moves up quickly between $900/oz and $1000/oz gold. With gold moving to $950/oz today, the big move we saw today was pretty much expected Chez Otto.