Mining stock rally points to coming gains for gold prices, analysts say

|By:, SA News Editor

The outperformance of gold mining stocks over gold this year points to at least some price gains ahead for the metal, analysts say.

"The gold stocks typically begin rising or falling in advance of the metal, thereby foreshadowing the trend," Gold Newsletter's Brien Lundin says, adding that “they move further on a percentage basis than the underlying metal, thereby offering leverage.”

Lundin sees prices in the $1,400-$1,500 range at the end of the year, with prices continuing to strengthen in a “slow-but-sure” climb out of last year's steep correction.

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