Gold exploration companies love finding a rich vein of the shiny metal and an economy that prints lots of money. Central bankers in Europe and the United States indicated their willingness this week to fulfill the latter. With promises of more money printing, the price of gold rushed to prices not seen in six months. You can imagine the smiles it brings to the executives and shareholders of Xtra-Gold Resources (OTC: XTGR).
The company has kept busy this summer digging for yellow nuggets. Xtra-Gold Resources holds a significant amount of land in the Kibi Greenstone Belt located in the African country of Ghana. After analyzing historic data produced in part by Xtra-Gold Resources, Discovery Gold (OTC: DCGD) plans to focus on two targets in a gold-rich region near land held by Xtra-Gold Resources. On September 4, 2012, Buccaneer Gold released results from a drill program in the Kibi Greenstone Belt.
The price of gold coupled with news from Ghana concerning potential gold lodes must be a sight for sore eyes to traders in Xtra-Gold Resources. Since hitting an annual high of $1.92 a year ago, the stock has lost nearly 66% in value. Ironically, shares hit a new 52-week low today even though the stock closed higher on the day.
Buyers and sellers were evenly matched on the opening bell as the stock began the day where it closed yesterday at $0.70. In the first 30 minutes of trading, shares exchanged hands at a new annual low of $0.66. The initial half-hour of the session also accounted for the bulk of the day’s total volume. The first full hour of the trading day saw shares reach their high for the day when they traded for $0.75. Ninety minutes after the opening, both buyers and sellers lost their luster for trading and the stock quietly finished the day with a 13% gain to close at $0.75. The number of shares exchanging hands on the final day of the trading week swelled t0 201,000, or almost ten times the average daily volume. The volume today was also some of the heaviest seen all year. Traders will have the weekend to decide whether today’s activity finally marks the bottom of a long slide or if it is just a pause in the journey.
In other related news, the company announced results on August 21, 2012, from an additional 53 diamond holes located at its site in the Kibi Gold Belt of Ghana.
A check of Stockreads.com and Stockpromoters.com show no promotional activity for the stock. Silence is not the case on Twitter where @GoldStocksNews commented on the volume in the stock today, along with several entries made in the last week.
The company is headquartered in Toronto, Canada, and is involved in six gold exploration projects on land it holds in Ghana. The company was founded in 1998.