As Gold Prices Fluctuate, the Driving Factors for Higher Prices Remain Long Term

MiningStocks.com – Golden Peaks Resources Ltd., Goldcorp Inc. and Alamos Gold Inc. Provide Industry Perspectives on the Gold Market

POINT ROBERTS, WA, Delta B.C. – June 29, 2006 – www.Gold-MiningStocks.com (GMS), and www.MiningSectorStocks.com (MSS), investor and industry portals for the gold and mining sector are pleased to present a gold market outlook entitled, “As Gold Prices Fluctuate, the Driving Factors for Higher Prices Remain Long Term.” So far this year, gold has seen its share of sharp increases and periodic corrections, including the one currently taking place in the market. Offering perspective as we move through this correction period are Ian Telfer, President and CEO of Goldcorp Inc., Scott Emerson, Chairman and Director of Golden Peaks Resources Ltd. and Alamos Gold’s President and CEO John A. McCluskey.

According to Scott Emerson, Chairman and Director of Golden Peaks Resources Ltd. (TSX Venture: GL), an international exploration and resource development firm focused on Argentina, “We remain bullish on the yellow metal. Despite the recent price correction the price of gold (June 26, 2006) is 144.50% higher than it was one year ago. The fundamentals have not changed and Company's focus and business plan remain unchanged.”

As the World Gold Council currently reported declines in supply over last year’s levels, Goldcorp Inc. (TSX: G; NYSE: GG) President and CEO Ian Telfer has said he also believes that, “World gold supplies are under pressure as mine production around the world is declining.” Looking at the market, Telfer also says, “It is true, some mid-tier producers will increase production in the years ahead,” but he said he believes the company will continue to focus on expanding their own production operations first and foremost.

In the midst of declining supplies, mid-tier producers are expected to boost exploration and eventually add their share to supplies. Alamos Gold Inc. (TSX: AGI) President and CEO John A. McCluskey offers that over the summer period he expects there may be, “volatility in the short term, as the correction continues. Gold is still primarily trading in an inverse relationship to the USD.” In addition to this, he says at present, “While we are currently in a correction phase, Q1’06 was very positive for gold producers that were unhedged.”
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Golden Peaks Resources Ltd. (TSX Venture: GL) is a progressive international exploration and resource development firm that holds over 385,000 acres of prospective land holdings in four of Argentina's most established mining districts. For More Info: http://www.gold-miningstocks.com/CO/GL/Default.asp

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Source: Gold-MiningStocks.com, Golden Peaks Resources Ltd., Goldcorp Inc., Alamos Gold Inc.

Kitco Commentator David Vaughn Comments on Gold

Where to Next?

By David Vaughn June 28, 2006
www.goldletterdv.com

"Why should you be considering gold now even as we have watched a correction?

Have you noticed housing interest rates climbing this past week? The Fed continues to lose control. The word is that rates will continue to climb until “inflation” can be contained. That is a joke. As if with a flick of a switch the effects of rising energy costs, rising health care costs and every other cost rising can be made to go away with a brush of a magic wand. Maybe Greenspan accomplished magic in days of long ago, but those days are over and never to return again in our generation.

So I keep saying the same thing over and over again?

Yes, because I have to. Rising inflation equals a rising gold price. That is a fact that has proven true since the days of ancient Rome. And if you read enough you will read in every business section that inflation is becoming more of an issue. It has been ignored and kept under the table for a long time now. Yes, I admit that in the past the threat of inflation has been supposedly contained, but this is not the case any longer. "

New Streaming Video on the Correction Period, from BusinessWeek

Pause or Claws
"S&P believes we have established at least a near-term bottom in what will likely turn out to be a fairly typical correction within a continuing bull market."

Jim says, "Don't Bet the Ranch on a Rebound"

Jim Jubak, writer for CNN Money has this to say about the current correction taking place in the market:

"Since this downturn began on May 10, the Dow Jones Industrial Average ($INDU) is down 8% as of the June 13 close, the Standard & Poor's 500 ($INX) is down 7.5%, and the Nasdaq Composite ($COMPX) is down nearly 10.7%.

So when will this correction be over? It's certainly a legitimate and important question. But at the moment, it's the wrong question.

Instead, investors should be asking this: What are the odds that what has so far been an almost classical correction could turn into something worse -- a prolonged downturn that puts an end to the long-term rally that now stretches back to March 2003?

I don't think that rally is over yet. But there is no doubt that it is getting long in the tooth, and that the world's central banks seem perversely determined to put the global economy -- and thus the rally -- at risk. The next four months or so are likely to be critical. By the fall, I think the data will show relatively clearly if the rally is intact or if central banks have managed to kill the goose of growth.

A correction is a downward move that interrupts a stock market rally to correct the speculative excesses that always build up as a rally progresses. The average bull market correction since 1970, according to Sam Stovall of Standard & Poor's, is 13%. After the correction, the rally resumes from a new and sounder foundation.

So far we've clearly got Part 1. "

The Precious Metals Daily Report, Brought to you by Standard Bank

According to Standard Bank's Daily Report, dated for June 9th, gold continues to fight its way out of the current correction. Dspite the fact that the report found gold starting "firm in Asia Thursday, on follow-thruogh strength from the prior New York session," it concluded that, "Gold is likely to face stiff pressure lower as the corrective phase continues, with Friday's U.S. International Trade Balance economic data likely to provide some hint of direction."

Accordingly, "The gold market took its cue from the strengthening U.S. dollar and the yellow metal was sold aggressively in Europe, falling from the mid- $620s to re-test recent lows around $618. Gold continued to tumble lower in New York, as U.S. Dollar sentiment remained strong, crude oil prices sank below $70 a barrel and the surprising fact that global liquidation in the equity markets failed to boost gold's safe haven allure and prop up prices."

Is it possible that gold's safe haven status could ever be knocked? You tell me.

World Gold Council's Outlook for 2006

In a press release issued by the World Gold Council in May, 2006, a statement was issued that:

"Sustained investor interest supported by favourable economic and political circumstances has characterised the first weeks of the second quarter of 2006. Price movements are expected to broadly dictate jewellery demands, supported by expectation sthat the price will continue to rise, although continued reluctance of consumers and trade to buy is to be expected if such rises remain sharp or volatile."


Further to this, a report issued by the council stated that, "markets in Asia and the Middle East, which account for nearly two thirds of global gold jewellery demand, are also those that are most sensitive to gold price volatility. In tonnage terms, demand dropped by 38% in India, 25% in the middle East and 43% in Turkey compared to the first quarter of 2005; althougth there was a small, 2% rise in China."