Closing Bell: Gold takes the breather ‘we had to have’, says expert analyst Hedley Widdup; ASX slides
The ASX was a wash-out today, dampened by gold's sell-off. Pic: Getty Images
- ASX slides 0.71pc, down 64.7 points
- Broad sell down post-record close, 7 of 11 sectors lower
- Solid 5.7pc knock to gold prices undercuts gold stocks
Gold course corrects; Market makes its money
The ASX 200’s slide today was no real surprise. The market fell 0.71%, lopping about 64 points off the top to settle at 9030.
After hitting the double jackpots of an intraday and record closing high yesterday, ASX investors did the sensible thing and cashed out.
A 5.7% correction to the gold price overnight turned the exit into a bit of a stampede, especially for the slightly overheated gold mining sector.
The XGD All Ords Gold sub index plummeted a full 8.5%. While that sounds dramatic, it’s still up more than 60% for the last year.
“Gold is very strongly supported by the current geopolitical environment,” Lion Selection Group (ASX:LSX) managing director and resource analyst Hedley Widdup told Stockhead in an exclusive chat.
“We’re heading more and more into a kind of Cold War-era of global economics – you just can’t value gold effectively in that environment.”
Widdup says the reasons gold had run so strongly – the devaluation of the US dollar, greatly expanded buying from central banks, and an increasingly volatile geopolitical environment – are very much still present.
“A rally of that strength (10% in a single month) had to have a breather, and for that to come off the biggest news headline being a massive REE deal might just be speculative money chasing an option,” he said.
“This kind of volatility fits the pattern of a gold boom perfectly. The fundamentals remain firmly in place.
“It would surprise me more if gold didn’t go above its current level.”
Gold futures have recovered about 1% to US$4153 an ounce in trade today.
Rising oil prices lift energy stocks
Assurances from US President Trump that he would soon secure a new trade deal with China lifted oil prices today.
While we’ve all certainly heard that one before, the crude market is begging for any signs the current bear market could turn.
Crude prices were at more than 5-month lows before lifting 0.5% overnight, mirroring prices not seen since Covid-19 shut downs.
Brent crude lifted to US$61.32 a barrel, still subdued.
ASX Sectors
Source: Market Index.
ASX Indices
It was more than enough for the oil and gas bulls. The energy sector climbed 1.29%.
Woodside Energy (ASX:WDS) added 3.48% and Beach Energy (ASX:BPT) climbed 2.53%.
Utilities stock Meridian Energy (ASX:MEZ) was also on the receiving end, climbing 3.73%.
ASX Leaders
Today’s best performing stocks (including small caps):
| Code | Name | Last | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| AFA | ASF Group Limited | 0.35 | 4900% | 948940 | $5,546,783 |
| BMO | Bastion Minerals | 0.0015 | 50% | 3914000 | $2,222,595 |
| AUK | Aumake Limited | 0.004 | 33% | 2443086 | $9,070,076 |
| 4DS | 4Ds Memory Limited | 0.012 | 33% | 1.1E+08 | $18,548,088 |
| SNS | Sensen Networks Ltd | 0.125 | 30% | 2689718 | $76,754,974 |
| PCL | Pancontinental Energ | 0.009 | 29% | 14418548 | $58,002,562 |
| EDE | Eden Inv Ltd | 0.041 | 28% | 3678347 | $11,816,114 |
| AAJ | Aruma Resources Ltd | 0.028 | 27% | 11561402 | $7,214,692 |
| SRH | Saferoads Holdings | 0.12 | 26% | 47376 | $4,152,013 |
| ATR | Astron Ltd | 1.075 | 25% | 1732243 | $360,475,457 |
| ERA | Energy Resources | 0.0025 | 25% | 2294591 | $810,792,482 |
| FBR | FBR Ltd | 0.005 | 25% | 11799417 | $26,207,891 |
| NTM | Nt Minerals Limited | 0.0025 | 25% | 5250000 | $2,421,806 |
| PIL | Peppermint Inv Ltd | 0.005 | 25% | 3171861 | $10,036,083 |
| QXR | Qx Resources Limited | 0.005 | 25% | 625000 | $7,370,598 |
| MSG | Mcs Services Limited | 0.011 | 22% | 3646433 | $1,782,897 |
| PAR | Paradigm Bio. | 0.45 | 22% | 4103155 | $156,699,273 |
| MCM | Mc Mining Ltd | 0.17 | 21% | 647607 | $96,819,979 |
| TYX | Tyranna Res Ltd | 0.006 | 20% | 1625711 | $16,710,774 |
| LVE | Love Group Global | 0.125 | 19% | 1292 | $4,256,209 |
| WBT | Weebit Nano Ltd | 4.85 | 19% | 2681293 | $851,892,450 |
| A8G | Australasian Metals | 0.145 | 16% | 89784 | $7,236,216 |
| MXO | Motio Ltd | 0.058 | 16% | 536871 | $14,100,545 |
| EGR | Ecograf Limited | 0.56 | 15% | 2719627 | $221,463,714 |
| MIO | Macarthur Minerals | 0.061 | 15% | 19349 | $16,859,454 |
In the news…
ASF Group (ASX:AFA) is topping our winners’ chart today with an unbelievable 4,900% gain in a single day.
The penny investment stock arrived on the digital currency exchange scene with a bang, powering up from just $0.007 a share to $0.350 on news AUSTRAC had registered its subsidiary as an official digital currency exchange service provider.
AFA now has the ability to facilitate exchange between fiat and digital currencies, as well as digital-to-digital currency transactions.
With banks, governments and financial institutions investing more in stablecoins and digital currencies every day, it’s no surprise AFA’s certification is drawing attention.
Pancontinental Energy (ASX:PCL) is taking a squizz at two new prospects within its PEL 87 project off Namibia’s shore. PCL reckons the Phoebe West target holds prospective resources of up to (3U) 779 MMbbls.
The Northern Channel prospect is looking even better, estimated to hold up to (3U) 1,339 MMbbls. Together, they could raise PEL 87’s total prospective resources to 6.1 billion barrels of oil (3U).
Eden Innovations (ASX:EDE) has fielded orders for six OptiBlend kits worth more than US$300,000 (A$462k) from two US data centres. EDE expects more sales in the near-term with one data centre flagging a requirement for six more kits.
The company’s OptiBlend sales pipeline is sitting at about US$4.4 million, having added US$1.1 million in the past 3 months.
ASX Laggards
Today’s worst performing stocks (including small caps):
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| MTL | Mantle Minerals Ltd | 0.001 | -50% | 220000 | $14,466,230 |
| AYM | Australia United Min | 0.004 | -33% | 3064746 | $11,055,465 |
| LRD | Lordresourceslimited | 0.026 | -30% | 13426935 | $6,549,075 |
| BLZ | Blaze Minerals Ltd | 0.003 | -25% | 800677 | $11,500,000 |
| C7A | Clara Resources | 0.003 | -25% | 1661967 | $2,973,180 |
| MEM | Memphasys Ltd | 0.003 | -25% | 250546 | $8,964,392 |
| NVA | Nova Minerals Ltd | 0.855 | -24% | 6645114 | $463,012,050 |
| MGU | Magnum Mining & Exp | 0.007 | -22% | 22189852 | $25,237,144 |
| TMS | Tennant Minerals Ltd | 0.007 | -22% | 8320984 | $9,593,014 |
| WSR | Westar Resources | 0.007 | -22% | 14363657 | $3,588,523 |
| PIM | Pinnacleminerals | 0.15 | -21% | 1167738 | $19,088,048 |
| GLA | Gladiator Resources | 0.031 | -21% | 14513884 | $31,740,243 |
| ADG | Adelong Gold Limited | 0.012 | -20% | 20374612 | $38,502,545 |
| NWM | Norwest Minerals | 0.012 | -20% | 6507190 | $15,451,604 |
| 1AD | Adalta Limited | 0.004 | -20% | 8716000 | $8,452,646 |
| ARV | Artemis Resources | 0.008 | -20% | 4451991 | $37,709,222 |
| MMR | Mec Resources | 0.004 | -20% | 5910414 | $9,359,949 |
| PKO | Peako Limited | 0.004 | -20% | 4606995 | $7,438,710 |
| PLCR | Premier1 Lithium | 0.002 | -20% | 3232992 | $920,151 |
| RKB | Rokeby Resources Ltd | 0.004 | -20% | 5550996 | $9,129,409 |
| HMI | Hiremii | 0.044 | -19% | 540404 | $8,157,911 |
| ATT | Altitude Minerals | 0.031 | -18% | 1842286 | $9,280,648 |
| AAU | Antilles Gold Ltd | 0.009 | -18% | 18488154 | $30,938,248 |
| CST | Castile Resources | 0.115 | -18% | 1249783 | $42,804,801 |
| CZN | Corazon Ltd | 0.19 | -17% | 261943 | $11,548,765 |
In Case You Missed It
Frontier Energy (ASX:FHE) has locked in revenue for the first stage of its Waroona renewable energy project in WA after being assigned peak capacity credits by the AEMO.
Nordic Resources (ASX:NNL) has raised $8.5 million, highlighting the growing market confidence in its gold portfolio in Finland.
Renascor Resources (ASX:RNU) is advancing construction of its Australian Government co-funded purified spherical graphite (PSG) demonstration facility in Adelaide, South Australia.
With the Develin Creek program now wrapped, QMines (ASX:QML) has pivoted straight into Mount Mackenzie, mobilising two rigs and completing the opening hole.
Pinnacle Minerals (ASX:PIM) has kicked off exploration at Yellow Pine, Thunder Mountain, Antimony Queen and Justice in the US.
Broken Hill Mines (ASX:BHM) has raised $38.5 million in a placement to fuel growth at the Rasp and Pinnacles projects.
CuFe (ASX:CUF) has reported high-grade historical intercepts of bismuth at its Orlando project, prompting a resource update to include the critical element.
Ausgold (ASX:AUC) has acquired the land necessary for developing its Katanning gold project.
Resolution Minerals (ASX:RML) is fast-tracking its downstream antimony strategy to align with US ambitions to secure domestic critical minerals supply.
Lumos Diagnostics (ASX:LDX) has kicked off a paediatric CLIA-waiver study in the US for its FebriDx rapid diagnostic test with the first patient enrolled.
Legacy Minerals (ASX:LGM) has received fresh funding with two NSW government grants to accelerate exploration at its Thomson and Rockley projects.
American Uranium (ASX:AMU) has initiated the first of a two-phase resource development drilling campaign at the Lo Herma ISR uranium project in Wyoming.
Future Battery Minerals (ASX:FBM) has secured an option to acquire the Randalls gold project and expand its exploration tenure across the WA Goldfields.
Rapid Critical Metals’ (ASX:RCM) appointment of one of Australia’s most prominent investment bankers and company directors John Poynton as chair has underlined the rising profile of the silver explorer.
Last Orders
Prairie Lithium (ASX:PL9) has inked a non-binding offtake deal to supply Stardust Power with 6,000 tonnes of lithium carbonate equivalent per year. The agreement covers the sale of concentrated lithium chloride, to be transported to Stardust’s lithium refinery in Oklahoma, US.
Argent Minerals (ASX:ARD) has polished off a diamond drilled hole over Lode 200, hitting the targeted depth of 320.7m. The samples have been sent to the ALS lab in Orange under priority status. ARD is also drilling a second hole 120m from an earlier diamond hole, chasing high-grade silver and base metal mineralisation.
Trading halts
ASF Group (ASX:AFG) – response to ASX price query
Chilwa Minerals (ASX:CHW) – cap raise
Evion Group (ASX:EVG) – cap raise
New Age Exploration (ASX:NAE) – cap raise
Pivotal Metals (ASX:PVT) – cap raise
At Stockhead, we tell it like it is. While Prairie Lithium and Argent Minerals are Stockhead advertisers, they did not sponsor this article.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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