The Australian gold sector was a sea of red on Monday for no obvious reason; it felt like last week’s aggressive buyers, also for no apparent reason, had simply changed their minds! EVN was the ASX200’s worst performer, tumbling 5.25% after popping to new all-time highs last Thursday and Friday. We have been looking for gold and its related names to make new highs; they’ve delivered, and now for EVN, the next 15-20% move feels like a coin toss. The precious metal made new all-time highs overnight, up ~40% year-to-date, heading into the Fed’s policy decision on Wednesday, with gold ETFs in the US gaining ~1%, also posting new highs.
- We are far from giving up on the gold bull market, but the risk/reward for EVN in the $9.50-$10 region is diminishing: MM holds EVN in the Active Growth Portfolio.
MM is now neutral towards EVN short term
Add To Hit List
