What gold stocks should you buy?
Gold has remained in a relatively tight trading range for over 5-years, our preferred scenario remains a rally above $US 1,400/oz but there’s nothing impulsive about the moves at present.
The precious metal complex is enjoying lower rates and a stable $US but lacks inflation / major market worries to ignite any meaningful advance.
MM is bullish gold medium-term targeting a break over $US 1,400/oz.
Gold $US/oz Chart
However we are mindful of our bullish $A call for the years ahead which will remove the tailwind of a depreciating currency for the Australian gold sector.
The below chart illustrates golds appreciation in $A terms over the last two decades, if we are correct the hedging desks at our gold miners will need to be on their game after some easy years.
Gold $A/oz Chart
Now quickly moving on to 5 major Australian gold miners and importantly identifying our current ideal updated buy zones.
1. Newcrest Mining (NCM) $25.20.
In the bigger picture both fundamentally and technically NCM looks good which is reflected by the stocks solid performance over the last year.
MM ideally likes NCM around the $23 area.
Newcrest Mining (NCM) Chart
Continue reading to see our targets on 4 more gold stocks
