Argicle

Stimulus Sends Gold, RBY to New Highs

February 11, 2009

You may recall that last week's commentary alerted our readers to cyclical lows on or near Monday, February 9th and we were right on target. On the 9th, gold and RBY prices fell to $ 892 and $1.26 respectively and quickly bounced back the next day. Although support levels seem much higher than we expected, it's a good indication that prices must go even higher in the near term.

Today the price of gold and RBY jumped to $947 and $1.51 respectively, highs unseen since last summer. The price spike was associated with the following events:

- Congress' economic stimulus package moves closer to adding another $0.8 T to the Fed's $7.7 Trillion in commitments and adding to inflation concerns.

- RBY executives released news that crews hit yet another high-grade gold zone at its Phoenix Gold property. This is the 7th such discovery within the past 7 months at Red Lake, Ontario, one of the world's most historically mineral-rich regions.

In spite of today's price surge, prices quickly retreated. Such action may indicate that speculation was high and that prices have potential go even higher by the end of the month. We're targeting February 25th as the date we expect to see new highs.

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