Morning Report Friday 28 March 2014
The gold price has fallen over $US100/oz from the highs of this month and is now only $US100/oz from the lows since 2008.
We exited our long gold stocks within a day of their recent highs, but short of our initial / planned targets. This is a clear great example of the benefits of marketmatters.com.au auto emails (with SMS coming soon) when we trade, because 25 years of intuition sometimes triggers early decisions as it did here.
Fundamentally, recent talk of worryingly low inflation in Europe combined with no reaction to political tensions over Ukraine has put significant pressure on gold. The two main gold stocks I look at for a “roadmap”, Newcrest Mining (NCM) and Barrick Gold (ABX.US), the world’s largest gold company, are both medium term negative, pointing to a break of recent lows.
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