http://www.mineweb.com/mineweb/view/...

The 'Sell in May' situation could arrive right on time this year, according to Roger Wiegand, who anticipates the next larger, extended rally in gold this fall. Interview with The Gold Report.

Author: The Gold Report

..."TGR: Doesn't gold usually kind of go down or sideways during the summer?

RW: Yes, it travels sideways for most of the summer. I would say that's probably our trading action in the next two to four weeks. If gold sells down again, and I think it will, you could see a base-bottom somewhere between $850 and $885 and then a lot of chop and mild rallies. These channeled markets are difficult to trade. And, then into the fall we're looking for the next larger, extended rally. I suspect other markets will have a negative influence on several things and, as a result of that, gold should rise significantly in the fall. I know manipulators will be trying to cap it and keep the lid on, but one of the keys could be a rally price break through $1,007-the former high. Then gold could run away to $1,150 and more, easily up to $1,260. Now the other event, depending upon manipulation, is the chance gold could rise as high as $1,375 on the December futures contract. That remains to be seen. If it happens, we should see several markets with new pivot moves depending on key events. But, technically, from where we are today and where we've been, $1,375 appears in the cards.

TGR: That would be good news for a lot of those junior miners.

RW: Absolutely. One of the bigger stocks we've recommended in the gold sector, of course, was Hecla Mining Company (NYSE:HL). It was down at $1.41 and we're still recommending holding it with a stop, up 120%. They previously had a couple of problems we recognized were only temporary. Actually, HL has done so well it's almost behaving, trading like a high-risk junior miner, which it's not. Hecla is an NYSE-listed Blue-chip listed company with a beautiful balance sheet and a lot of great things happening. We plan to continue to recommend a hold through the rest of this year and probably into further-out years. Lower energy prices have played a major part in better mining profits.

TGR: Any other interesting companies in the gold sector?

RW: In the gold sector, we've recommended Miranda Gold Corp. (TSX.V:MAD), San Gold Corporation (TSX.V:SGR) and Bravo Venture Group (TSX.V:BVG). We also like Clifton Star Resources Inc. (TSX.V:CFO), and Canplats Resources Corp. (TSX.V:CPQ) in Mexico. Those are some of our preferred juniors. Our top seniors other than Hecla would be Agnico-Eagle Mines (TSX:AEM) and the other, of course, would be Goldcorp (TSX:G) (NYSE:GG), which is the Cadillac. Those would be our top three selections for the big boys.

TGR: Thanks, Roger, as usual, this has been very interesting and informative.

Using the nom de plume "Traderrog," Roger Wiegand produces the popular Trader Tracks newsletter, providing investors with short-term buy-and-sell recommendations and insights into the political and economic factors that drive markets. An insatiable reader, he digests a variety of domestic and international publications, with the economic, political, monetary and market news and commentary woven into his opinions and analyses. In addition to Trader Tracks, Roger also pounds out a weekly "Rog's Corner-After The Bell "column for Jay Taylor's Gold, Energy & Tech Stocks newsletter.

Published courtesy of The Gold Report - www.theaureport.com