A few weeks ago, we posted a report outlining the correlation between the Chinese Golden week holiday and the price of spot Gold.
Over the last four years, the price of Gold has dropped into, and during, Golden Week and then traded higher once the Chinese markets came back online.
As the chart below illustrates, spot Gold posted a low of $1262.00 last Friday and has since lifted by over $30.00.
We continue to look for Gold to trade higher into the end of the year and re-test the the $1350.00 level.
As such, we like long positions in NCM, EVN and SAR.
Spot Gold
Newcrest Mining
Evolution
Saracen