Gold is holding up well in the $1,250 range and looks poised for a breakout.
Gold weekly chart
Looking back further on the weekly chart we can see Gold has a bit of history rallying in the second half of December.
This is usually around the same time as, US tax loss selling finishes, a US interest rate decision & Santa Claus...
Given the current market conditions, this is beginning to look more and more likely from,
- A dovish toning Fed/RBA,
- Weaker economic data
- A strong move out of riskier/equity investments.
AGDX - Daily Chart
Bit of expected profit taking after 6 green days, now holding just above support.
GDX also looks to be in a 'Bull Flag' pattern.
3 'up & coming' newer producers I mentioned earlier this week have all started catching a bid.
They have all held up a lot better than the majors over the last couple of profit taking days too.
DCN - Daily Chart
Increasing volume and looks to have formed base now around $2 range.
DCN has a resource upgrade and an important quarterly update on production that is due over the next few weeks.
If production is inline with managements continued guidance estimates (180-210koz p.a.) then we should see an expected re-rating as this concern/headwind on SP is removed.
RMS had come out earlier this week with some 'Bonanza' drill intercepts, these intercepts also appear to be the best of any Gold company on the ASX for 2018.
RMS have been in a 'bidding war' with ALK for a take over of EXU.
RMS came out this morning with a higher and final bid for EXU, beating ALK's offer by 11.7%
RMS's share price has reacted a little negative to the new bid but has held up well considering the current market.
(RMS, ALK & EXU all obviously see considerable value in the resource for the bidding war to go on as long as it did and for EXU management wanting to hold out)
RSG - Daily Chart
RSG has been the best of the 3 today and now looks to have put a bottom in the share price.
I wrote a little bit of a more detailed post on RSG you can find here. https://hotcopper.com.au/posts/36564483/single
Given the current market conditions and likely devaluing of USD and AUD coming, Gold should continue to do well.
All 3 producers should see a nice re-rating if the Gold price continues higher and as the 3 keep upgrading their resources and production numbers.
(20min delay)
