Good evening once again, ladies and gentlemen! Welcome back to The Australian Gold Mid-Weekly Review! We hope you've been enjoying this series so far, our goal with this segment is to update you every Wednesday with the weekly movements in the precious metals market so you don't miss a beat!
This week, in the words of our managing partner Brian Chu, has been a rocky road for gold and gold stocks. Gold fell to a near one-week low on Tuesday, inching towards the US$3,920/oz region, before pulling back up to US$3,970/oz now, nearing the US$4,000/oz mark. While investors are waiting on the U.S. private payroll data due later today, analysts believe gold benefitted in its daily move today from bargain buying and broader risk-off sentiment across financial markets, supporting safe-haven demand for the yellow metal.
Brian believes gold might be forming a base around US$4,000/oz, but as we approach the end of the year, it will be interesting to see how gold moves as the probability of a December rate cut now reduces to 69%, with the dollar holding firm on a weekly basis.
Meanwhile, silver follows suit with gold this week as it has dropped back to the US$47/oz region this week, after the market priced in industrial demand and supply shortage the previous week, causing the metal to move in opposite directions compared to gold.
And finally, the ASX-All Ordinaries Gold Index. It has been behaving like a lion recently, who jumps humongous heights and runs at lightning speed as it plays for 2 hours a day, but sleeps and sits on the couch for the remaining 14. Just last week, we recorded a miniscule movement in the index (not even a 100 points), but this week, the index has already corrected more than 500 points, closing at 15,500 points today. Most large and mid-tier producers saw huge corrections as the market opened today, before climbing back to their original range later in the trading day. Evolution Mining decreased ~5% on market open but recovered nearly all its losses as its 1-day change was ~1% at market close. Northern Star Resources also fell ~4% on market open before it nearly recovered from its drawdown as it closed at a 1-day change of ~1%. However, developers weren't able to emulate producers' movements later in the trading day as developers continued to plummet throughout the trading day. Horizon Minerals plummeted ~10%, Brightstar Resources ~6%, Barton Gold ~4% (~7% on market open).
Well, that wraps it up for this Wednesday's review! It's been a rollercoaster week for gold and gold stocks this week, and we can't wait to bring you our insights into their valuations in Episode 15 of The Australian Gold Weekly Review on Saturday, so fasten your seatbelts, and stay tuned!
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