African Gold Miner on the Rise

Randgold Resources (NASDAQ:GOLD) — For months, gold bullion has been running ahead of gold mining stocks. But that trend appears to be correcting as major mining stocks are coming to life. The rise in the price of the metal has provided gold mining stocks with the means to multiply profits, so the sector is breaking out of 12 months of relatively flat prices.

Randgold mines in West and Central Africa. With the rise in the price of gold bullion, the company is expected to increase earnings to $6.74 in 2012 from $6.22 in 2011, and analysts have raised their price target to $150. Technically the recent break from a triple-top gives a target of $140.

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