Gold Continues To Climb

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Gold posted a low of $1204.50 on July 10th. Since then, the yellow metal has rallied over 5% and hit an intra-day high of $1270.70 in last night’s New York trade.

This marks the 3rd straight week of higher prices and internal momentum indicators are now pointing to the June high of $1295.75.

However, share prices of local gold miners NCM and EVN have not reflected this stronger trade in the spot Gold price.

Both NCM and EVN announced positive quarterly production numbers last week, and we expect both names will break out their recent ranges on the topside.

Over the medium-term, we have price targets of $22.10 for NCM and $2.60 for EVN.Gold

Newcrest.

Evolution Mining

NCM Meets Gold And Copper Output Targets

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Shares of Newcrest have opened  1% higher at $19.80 as their quarterly production report reflected a uptick in production going into the second half of the year.

The company said that its Q4 gold production fell 7.7% from a year ago after the closure of its Cadia mine, but overall output was just enough to meet its full-year target.

Overall production of 551,815 ounces in the quarter helped the gold miner reach an annual output of 2.38 million ounces, which is at the lower end of their 2.35 to 2.60 million ounce forecast.

NCM also posted copper production of  83,900 tons, which is within the guidance of 80,000 to 90,000 for the year.

With spot Gold now trading at one-month high of $1255.00, we expect NCM to move back into the mid-June range of $21.50 to $21.75.

Newcrest

 

Gold Update: Look To Buy Near $1200.00

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Over the last 7 months, Gold has traded in a broad range between $1200 and $1300.

As inflation, interest rate expectations and equity market risks have fluctuated over that time, so has the price of Gold.

On balance, we expect the $1200.00 support level to hold and find buyers as the yellow metal moves back to the top part of the recent price range.

Investors looking for the price of Gold to move higher can look to buy NCM, EVN or the BetaShare Gold ETF with the symbol: QAU.

Spot Gold

 

Gold Update: Looking For Higher Prices

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On June 8th, we posted a report on Gold just as the spot price was about to break back above $1300.00 for the first time since last November.

Instead, the yellow metal failed at resistance and has rotated lower finding support at the $1240.00 level.

In that same report, we commented on how the share price of NCM was lagging behind the spot price due to supply concerns from the idle Cadia mine in NSW.

At this point, the spot Gold price and the share price of NCM seem more in sync with both slowly moving back above key resistance levels.

With local stock valuations still very high, we suggest investors look to increase exposure to Gold. We recently took profits in EVN at $2.50 and will look to re-position over the near-term.

We also suggest investors can look to buy the BetaShare Gold ETF with the symbol: QAU.

Newcrest

Evolution

BetaShare Gold ETF: QAU

A New Bullish Case For Gold

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Spot gold rose to its highest levels since November near $1,295 per ounce on Wednesday, good for a 13% gain so far in 2017.

In so doing, Gold broke a technical downtrend that has been in place since the  September 2011 peak of $1,900 per ounce.

The support in the yellow metal may be evidence of market fear rather than reflationary exuberance. The Chinese Gold and Silver Society Exchange expects 2017 mainland gold imports to increase by 50% from the prior year, amidst increased safe haven demand.

Daily chart analysis points to the next resistance level near the September highs of $1,322.

We continue to accumulate shares and call options on NCM. We also suggest shares in EVN and the BetaShare Gold ETF with the symbol QAU.

 

 

Gold Climbs To An 8-Week High…….NCM Up 1.5%

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On May 6th, we posted a report on Gold which suggested the yellow metal was holding support levels at $1220.00 and had a medium-term target of $1260.00. At this time, NCM was trading at $20.10

Gold traded as high as $1281 in early Asian trade today and NCM is finally joining the rally. The stock  has reached a two-week high of $21.78 and internal momentum indicators are looking constructive for a move higher.

We’re still expecting higher prices in both, with the next resistance level for gold at $1293.00, and the May 18th high of $22.20 for NCM.

Newcrest Mining

 

 

 

 

Solid Gains For Gold

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After posting a low on May 9th at $1215.00, Gold touched a high $1270.00 in late NY trade on Friday. Internal momentum indicators are looking constructive for a move back to the April high of $1295.00

For investors looking to profit from a higher gold price, we suggest buying shares of NCM, EVN, or the BetaShare Gold ETF with the symbol: QUA. 

We have a medium-term target for NCM at $25.50, $3.00 for EVN and $14.00 for QUA.  Newcrest Mining

Evolution Mining

 

BetaShare Gold ETF

Gold Firms, But NCM Still Lags

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On May 6th, we posted a report on the blog which suggested that both Spot Gold and shares of NCM were in oversold territory.

At that time, the prices were at $1225.00 and $20.10, respectively. Now, Gold is back over $1250 and looking firm on the internal momentum indicators. We expect the yellow metal to test April 17th high on $1290.00 in the medium-term.

In this sense, shares of NCM have lagged behind the spot gold price and have gained just over $1.00 during the same period.

We still consider NCM undervalued at current prices and suggest buying outright shares, or call options out to July, for a medium-term price target of $25.50.

Newcrest Mi

 

Has Gold Found A Bottom?

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The Spot Gold price hit a high of $1290.00 on April 17th. Over the last two weeks, the price has dropped over 5% to close just over $1227.00 in late NY trade.

During the same time, the share price of Newcrest Mining has dropped over 20% from $25.30 to $20.10 at Friday’s ASX close.

The closure of the Cadia mine has had a multiplying effect on the share price; which was already feeling the pressure of lower spot gold prices.

The daily chart patterns in both Gold and Newcrest are showing technically oversold conditions. At current prices, we consider both assets good value for a medium-term reversion trade to $1260 and $22.75, respectfully.  Newcrest

Newcrest Is Back In The Buy Zone

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The benign result of the first round of the French elections has triggered a “risk on” relief rally in global financial markets.

As such, Gold opened the Asian session down $20.00 at $1265.00 and has steadily recovered as the reality of the election result settles into the market.

Technically, Gold is still in an uptrend with the 30-day moving average still below the market at $1256.00. We expect Gold to recover and re-test the April 17th high of $1295.00 in the near-term.

Over the last five trading days, shares of NCM have dropped close to $2.00.

The lower price of Gold combined with the closure of the Cadia mine has pushed the stock down into the buy zone of $23.20; still above the 30-day moving average at $23.00.

We expect both the price of Gold and shares of NCM to rebound and trade higher over the medium-term. Investors looking to profit from higher Gold prices can also look at the QAU BetaShares Gold ETF.