Gold Digger: Have gold prices bottomed?
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Your weekly recap of the news driving ASX small cap gold stocks.
The major gold miners were obliterated alongside everyone else last week.
To get a sense of the carnage you only have to look at the numbers. Just two of the 141 gold facing stocks on our list made a small gain over the last week — Victorian explorer GBM Resources (ASX:GBZ) and Cambodian project developer Emerald Resources (ASX:EMR).
That’s some super rarefied air.
Here’s how ASX gold stocks performed for the period March 9 — March 16 [intraday]:
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop:
Last week, spot prices fall as low as $US1,513 ($2,439) per ounce from $US1,700.90 just days before. But Commentators waved off concerns about the drop, saying that similar falls occurred during the 2008 crisis as investors sold gold to gain liquidity.
On Monday, prices showed signs of an early recovery after the US Federal Reserve aggressively cut rates to zero and launched a massive $US700bn quantitative easing program; with potentially more to come.
Edward Moya, senior market analyst at Oanda Corp, boldly predicted gold was “slowly getting its groove back.”
“Gold prices will ultimately benefit from all this global monetary and fiscal stimulus,” Moya says.
“Gold should grind its way back above the $US1,600 an ounce after we see all the other central banks ramp up their efforts this week.”