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GOLD

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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GOLD

Hi James, Thanks for continued excellent daily commentary. You have a positive outlook for gold in general. I look at 1 year chart for GOLD vs NCM/NST/ENV and only GOLD is higher today than it was 1 year ago. Do you prefer NCM/NST/EVN over GOLD because these have some sort of leverage to the increasing gold price? thanks Alain

Answer

Hi Alain,

Gold stocks are indeed frustrating at present, similar to the Oil Sector which is lagging the commodity and US peers. At this stage its hard to see a short-term catalyst for Australian gold stocks to address the relative performance differential but they are cheap and we do like Newcrest (NCM) and Northern Star (NST) at current levels. If we eventually see the markets embrace MM’s view that bond yields have done their dash on the upside for 2022/3 we may see some love return to the sector – we hope so!

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Newcrest Mining (NCM)
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