Why are gold stocks so unloved?
Question! Why are gold stocks - e.g. NST, EVN - being hit so hard in the last week (down around 15%) when the gold price has only fallen a few per cent ?
Thanks !!
Steve D
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Answer
Hi Steve,
Gold stocks are under pressure because of a strong $US and fears of rising bond yields while disappointingly they haven’t enjoyed a bid tone on rising inflation fears. The gold sector remains totally unloved and by definition very cheap compared to the broader Resources Sector, history tells me this doesn’t last forever but our bullish bias doesn’t feel too good at present however we are going to give it a little more room as the Gold price continues to consolidate.
