Good evening, everyone, and welcome back to Episode Two of The Australian Gold Weekly Wrap-Up! If you thought last week was eventful, buckle up, because this week’s ride through gold, silver, oil, and precious metals equities is anything but dull.
Gold slipped 0.56% to US$3,335, and the reason? A stronger-than-expected producer price index report on Friday sent the US-Dollar and Treasury yields flying, dragging gold down right after it briefly overtook last week’s closing value mid-week. But here’s where it gets intriguing: our deep dive uncovered a shocking shift in the relationship between the US-Dollar Index and gold. Over the past three months, there’s been virtually no relationship at all, even though they’re still technically negatively correlated. Why is this happening, and what does it mean for investors? You’ll want to hear Brian’s take.
Meanwhile, oil prices retreated further after reports of increased supply from the US Government. Despite this, the gold-oil ratio dipped slightly because gold pulled back more than oil by a whisker.
But here’s the twist: while gold and the gold-oil ratio fell, gold stocks ended the week positive. The ASX-All Ordinaries Index climbed 221 points this week, breaking above 12,000 points once again and even staging what may be another rally after the 6-week long correction.
What’s driving this renewed bull in gold producers? Falling crude oil prices or prolonged strength for the gold-oil ratio? And what’s the hidden significance behind Brian’s brand-new metric: the standardised operating margin? We covered this in our dialogue.
And silver? It fell just short of US$38 at the close of the week. Brian calls it the FOMO metal for a reason. He breaks down exactly what could happen if silver smashes through that psychological US$40 barrier. What could it be?
But the real fireworks this week come from two standout companies. First, Dateline Resources Limited, up a staggering 52% after whispers of rare earth elements possibly lurking underground near their exploration site. The company went on an absolute tear since May this year. How much further has it got to run?
Finally, we zoomed into Evolution Mining after it reported its 2025 full year results on 13th August. Their stock soared 6% in just half an hour after the market opened. Record profits, double year-on-year growth, and a massive leap in dividends caused this leap.
The big question now is: what next for these larger producers after a blockbuster year? Keep an eye out for more deals and transactions. The market looks ripe for that.
All these are in this week’s commentary. It was a long one, running for almost 50 minutes. That’s why we’ll release it to you in two sections. Check out this space for the second part!
Trust me, you don’t want to miss this one!
Note: None of the contents in the video (spoken or shown) constitutes financial advice. Our program only aims to be educational and entertaining. We leave the investing advice to the licensed experts, whom you should consult.