Gold Jumps On North Korean Missile Launch

Posted on | by Todd | Leave a Comment on Gold Jumps On North Korean Missile Launch

Earlier this morning, North Korea launched a ballistic missile that flew over the Northern part of Japan and landed in the Pacific near Hokkaido.

The missile was fired from the Sunan region around 7:30 am, Sydney time, and flew approximately 2,700 km at an altitude of about 550 km.

Both South Korea and Japan responded with a strong statement denouncing Pyongyang’s sharp escalation of tensions in the region.

Gold was already $12.00 higher after the US session and added another $8.00 after the news broke this morning. As illustrated on the chart below, spot Gold broke above  a 7-year downtrend line and reached a high of $1324.50.

In an environment of global economic uncertainty and heighten geo-political tensions, we still prefer the long side of Gold and see the next resistance level at $1340.00

We still see scope for more upside in the local Gold names. Both Newcrest and Evolution are trading over 2.5% higher in early trade. We consider an upside target of $23.60 in NCM and $2.95 in EVN as reasonable price targets.

Spot Gold

Newcrest Mining

Evolution Mining

 

Gold Tops $1300 Intra-day

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Gold prices touched their highest intra-day level of the year on Friday, temporarily topping $1,300 an ounce before pulling back to settle unchanged on the day.

Gold had traded up to $1,303 for the first time in 2017, getting a lift from safe-haven demand on the back of weakness in global equities, a terrorist attack in Barcelona and concerns about President Trump’s pro-business political agenda.

Despite the late pull back into the weekend, the technical picture in Gold looks constructive. On a “measured move” basis, the break above $1300 points to the November highs near $1340.00 as the next area of resistance.

We still prefer the long side of NCM, along with smaller-cap miners EVN, SAR and NST.

Our medium-term price target for NCM is $23.10 and $2.80 for EVN.

Spot Gold

Newcrest Mining

Evolution Mining

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

Evolution Posts Record Production

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Evolution Mining (EVN) posted a record quarterly production result of 218,000 ounces at a sustained cost of  AUD$825.00 per ounce.

The strong Q4 number places the FY 2017 production at the upper end of forward guidance near 844,000 ounces, and below the lower end of the cost guidance of AUD$906.00.

We see near-term technical resistance in the $2.48 area with a longer-term price target near $2.60.

However, a stronger AUD/USD above .8000 will have a dampening effect to EVN’s bottom line going forward.

Evolution Mining

 

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

Posted on | by Todd | Leave a Comment on Gold Update: Looking For Higher Prices

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.

 

 

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