Daily Roundup - March 13, 2009

Spot gold on Friday managed to eke out a gain, for the third day in a row, even if this day's gain was tepid compared to the last two's. Thursday night's price action was basically flat, with a slight downward bias settling in as night turned into early morning. The downdrift stopped when gold hit US$920, where it stayed at for close to an hour. Then, it began to rally. After a pause, it continued to shoot up at the about the same time it was dropping Thursday. By about 8:20 AM ET, gold hit its daily peak of about 938. The upspurt then turned into a roller-coasterish downturn, with lullifying drift turning into sickening plummet. This one, though, stopped a a higher level than the early morning's lows: 925. By 10 AM, when the drop stopped, gold was preparing for a remount, which fizzled. The rest of the day saw a range, between about 927 and 930. Gold closed the week at the higher end of the range: US$929.40, for a gain of $2.30. The Amex Gold Bugs Index was also up, also more modestly than in the last two days: +1.18%.

The top point gainer amongst the gold stocks blogged here on Friday was Detour Gold Corp, which gained 65 cents to close at $9.24 on moderately heavy volume. The news item affecting Detour was released at about 2 PM ET; by that time, some of the rise in the stock had already taken place. However, the recommendation that the merger with PDX Resources, Inc. be voted for by shareholders preceded a further 50 cent-or-so leap in the stock price. PDX itself didn't fare as well, but it gained 10 cents to close at $2.30 on moderate volume.

The top gainer on a percentage basis was a small stock with a seemingly innocuous item. Golconda Resources, Inc. hadn't traded at all when it announced it was applying for permission to trench sample its Mitchell Creek placer property. Right after the news hit, though, the stock took off after an initial drop was shaken off. Four trades in quick succession pushed the price from 8 to 10.5 cents. About ten minutes later, 11- and 10.5-cent trades were quickly followed by a 12-cent'er; within an hour, the stock had hit 15 cents for a gain of 6 cents on heavy volume. At that point, trading stopped; the bid and ask hardened into their present 11 and 14 cents. Although the ending bid-ask pair makes the gain look overstated, it nevertheless was the best performer on an official percentage basis.

Not far behind it was Darnley Bay Resources, even if the news item itself showed up after the trading in the stock was largely done for the day. By the time it was revealed that Darnley had cut a deal with a Russian exploration firm, the stock had gained four cents to reach 10. The final trade, taking place after the news was disseminated, bought the price down a penny to 9 cents. The stock was left with a three-cent, or 50%, gain on light-moderate volume. Unlike Golconda, though, the bid - ask for Darney was almost at the closing price: 8.5 cents - 9 cents.

The worst dropper on a percentage basis was Ivanhoe Mines, down 89 cents to close at $5.30 on heavy volume. The item in question was an optimistic one, which said that the Mongolian parliament was making an Oyu Togio project approval a pressing priority. Its dissemination at about 10:45 ET seemed to induce a halt in an earlier drop in Ivanhoe, but a last-minute plummet broke throught the $5.50 floor set at that time.

That's it for the Canadian Gold Stock News Watch daily wrapup. This post will stay at the header until early Monday morning, when the items that came in overnight will be put up. Also, I'll put up any items from yesterday that came through the CNW Group wire. (For whatever reason, my filter there leaves me a day behind.) Until that time, thanks for stopping by; try to have a safe weekend if you're trenching.

Stocks Mentioned: Detour Gold Corp., PDX Resources Inc., Golconda Resources Inc., Darnley Bay Resources, Ltd., Ivanhoe Mines, Ltd.

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NOTE: This blog is confined to aggregating news relating to Canadian gold stocks, as well as to commenting on past and present price movements, and is intended as an informational resource. It is not intended to make recommendations, nor is it a tool for forecasting future price movements. Its author is not a qualified investment advisor, and as such cannot make any investment recommendations. Should you be interested in any stock that appears here, please consider carefully if it is suitable for you and your portfolio. Please also consider seeking advice from a professional investment advisor if you have not already done so.