Weird that OGC is one of the biggest fallers then?
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Weird that OGC is one of the biggest fallers then?
Yeah Its funny how the market will follow the USD price ....and get Bullish on new highs etc but when the likes of the gold price is near all time highs in the local currency of the company and a part of the market has interest and more so follows the trend sentiment .....I know if I had extra funds to invest the AUD Gold sector is where it would be invested fattest margin going in the Resource sector
OGC is very exposed to the price of Copper, which keeps falling (down from 2.60 to 2.23 in less than two months...and they reported a substantial drop in NPAT...and there's uncertainty over their acquisition plans...and their sp lifted more than 20% from mid Aug to last Friday overdue for a correction IMO...the PoG has hit a downward trend line at 1170USD...etc)
Yes but also have seen some downwards pressure on gold Stock NCM was down today ...IMHO it's pure sentiment of a high risk sector and not fundamental .. the numbers will shine through ...and then the lemmings will follow on mass expanded by money looking for a home exiting from the many bubbles we
have from cheap money
I don't think the market is convinced that this is nothing more than a sharp correction in both gold & equities.
I'm not sure either to be honest.
But equities are looking very sick & gold hasn't done that much yet, so there is plenty of upside potential.
Many have asked over the years how gold would react with a meltdown in equities. Many said it would collapse with everything else as it did in 2008. I always said, it depended how the market was positioned. If the market was long like 2008 it will repeat the pattern. If short it will spike hard and that's exactly what we have seen. And I would suggest most of this rally so far is short covering, although there will no doubt be some going long as well.
The biggest risk I see of a repeat of 2008 is around the debt and derivative exposure to the energy sector.
At these prices of oil there must be some very worried banks.
Yes for me I really think the issues with the derivative debt bubble bomb will spark the PM into a major Bull trend as a safe investment that will hold it's value while money in the bank will go backwards ,,,,Gold shares will finally break free thanks to growing profit numbers AUD GOLD hit 1632oz add in lower labour rates and lower energy costs interest rate cut 60's for the AUD/USD!! surely the market will wake up to the BIG profit numbers...
the money has to go somewhere >>>why not into booming PM shares
Gold & silver both surged overnight, I got long both yesterday so very nice profit in 24 hours.
Should be a good day for the gold & copper/gold stocks Monday. ;-)
Yes DTR, it is a bullish sign that the POG closed up so strongly at the end of the week. The traders don't usually like to stay long over the weekend.