Gold stocks slipped ~2% overnight even with the precious metal holding around $US5,200. There still appear to be selling into strength, from crowded longs, although at MM we are still keen buyers into weakness if it materialises as we anticipate. Our medium-term stance was reinforced this week when we heard that China has now been continuing to accumulate gold for ~16 months straight, highlighting its strategic push to diversify reserves away from the US dollar.
- We maintain our short-term bearish stance toward gold and its related names, targeting another ~10% downside for NST.
MM is neutral NST around $27
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