Gold vs EVN and NST
Hi Shawn, I would like to understand why yesterday when gold went down $50 per ounce EVN and NST both held firm. I would appreciate your insights. Regards Jeff
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Answer
Hi Jeff,
A couple of interesting points here, especially after the strength exhibited by gold stocks on Wednesday.
- The correlation between gold and EVN & NST is strong but not perfect. Gold hit all-time highs last week but the ASX gold stocks have struggled since COVID, in 2024 NST is up just +3.7% and EVN only +1.1%.
- Bond yields have exerted as much, if not more influence, over gold stocks in recent times.
- Wednesdays gold buying came out of nowhere with Red 5 (RED) +6.4%, Emerald Resources (EMR) +6%, West African Resources (WAF) +4.6%, and Evolution Mining (EVN) +4.1% opening around unchanged and driving higher all day, leading the market gains in the process – it largely reversed the next day!
With futures markets becoming more dovish by the day the Gold Sector looks well positioned to surprise further on the upside into 2025.
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Gold ($US/oz) v Northern Star Resources (NST)
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Gold ($US/oz) v Northern Star Resources (NST)
