Forewarned And Forearmed Last March I began warning Gold Newsletter readers that the Dollar Index was tracing out a “head-and-shoulders” pattern. Moreover, it indicated that the dollar was going to drop to about 94.70 — or right where it was yesterday.
That’s great, but even I expected the greenback to take a pause here. Instead, despite bullish news today, it’s taken another turn downward. In fact, it’s hit 11-month lows and is targeting the low 90s in the near term. The reaction in gold has been a bit muted so far, as the metal is up a few dollars at last check. But that’s better than where it was early this morning — down about six dollars — before the dollar made its move lower.
Gold is currently trading in the key $1,240-$1,250 range that has alternately provided support and resistance. In short, the battle lines are drawn here. It will be difficult for the metal to break through, but if it does we could see a major rally ensue.
More interesting to me are a number of junior gold exploration companies that are drilling right now. As I told you in recent issues, I’m covering five of these companies in the current issue of Gold Newsletter.
You can find all of these high-potential plays in that issue, but I’d like to reveal one for you right now... Tower Resources
TWR.V; TWRFF.OB; C$0.22 Tower Resources is a company with three outstanding gold prospects in British Columbia — the Rabbit North, Nechako Gold and More Creek projects. In fact, these prospects are so good that the company was able to raise over C$3 million this spring to fund drilling programs on all three. When I talked with the company in March, they’d already lined up some very smart investors to come into that financing.
I didn’t hesitate to join them, and I’m glad I did.
Since recommending Tower in Gold Newsletter in March, the stock is up nearly 47%. So you might think that much of the gains are behind us.
But this story is just beginning. The company has only begun to drill the first of its three projects, and just announced the first results on July 11. Now, those were great results, featuring 0.75% copper equivalent (0.51% copper and 0.34 g/t gold) over an impressive 247 meters. More importantly, this hole has helped Tower’s geological team to understand how to target the mineralization...and the next drill holes could be even more impressive.
And then there are the remaining two projects they’ll be drilling this season. Bottom line: I’m a shareholder in Tower, and I’m excited to see what the days just ahead will bring.
NOTE: I save the vast majority of our junior stock picks for our paying Gold Newsletter subscribers. But because those subscribers have already enjoyed nice gains from this pick — and because I expect much more to come from Tower very soon — I decided to share this recommendation with our Golden Opportunities readers today. And please also note that the rest of our top drill-play recommendations are featured right now in our current issue of Gold Newsletter.
If you subscribe now, you can get full details on all of them.
...And because this opportunity is so urgent, I’ll let you subscribe for half-price over the next two days. Just CLICK HERE to subscribe to Gold Newsletter at half price. Is The Summer Slump In Gold Over? There are a lot of reasons to believe that gold has bottomed and the trend is back up once again. For one thing, sentiment has reached severe lows, to a point where significant rallies have followed in the past.
Still, this is the summer, and gold could take another stab downward before rallying again in the fall. Suffice to say that, while anything can happen in the near term, I’m confident that gold will be much stronger in the back half of this year. Moreover, I’m confident that some of the drill plays I’m recommending right now — including Tower Resources — will make big news over the days ahead. If you want to be part of any of these potential discoveries, you’ll need to act now. All the best,
Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference | 