Morning Report Wednesday 16 September 2015
Some local gold stocks are glistening as the precious metal dulls?Good morningOverviewWell, the market action in Australia yesterday was suggesting a significant fall in the US markets overnight. But, again, it didn’t happen with quite the opposite taking place. Our market will open up around 1% today. Patience and continuing to watch the messages the markets are telling us are key. As we say in Chart 6, some further sideways action followed by a sharp spike down would not surprise but we would see this as an excellent buying opportunity.Turning to the MarketsAt Market Matters we have been looking for a strong counter trend rally in gold for weeks but the looming interest rate rise in the US is, understandably, putting pressure on the precious metal and we have been getting frustrated. However, some things are catching our eye that we cannot fully explain!!Over the last four weeks Northern Star Resources (NST) has rallied 20.5% but during the same period gold has fallen over $US70/oz (5.5%). Similarly, over the last four weeks Regis Resources (RRL) has rallied 16% but Australia's largest gold producer Newcrest Mining (NCM) is basically unchanged.So, let's let look individually at these three local gold stocks:
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