US Gold is after Minera Andes to create a high growth, lowcost mid-tier silver producer focused in the Americas. The merger will be called McEwen Mining Inc. with a market cap of $1.4-billion. McEwen, former CEO of Goldcorp, is the largest shareholder of U.S. Gold and his leadership has been phenomenal for the company’s growth.

Shares of U.S. Gold are up nearly 6% today creating a new support level at $5.5.

There are many forces behind a higher gold, including continued tensions in the Middle East and North Africa, a falling dollar, and debt concerns in the eurozone. Prices are nearing old highs and a clear breakout signals another leg up for the coming weeks.

US Gold is one of the best junior players. We like everything about the company from resources to how the CEO is investing and managing this company. Recent weakness in gold price; however, is now affecting the shares. With the likelihood of further gold price downtrend, shares of US Gold could break the support line and trade below the 50dma. The pull back will create an opportunity for new comers or those who want to add to their positions.