Gold Digger: Price movements are the latest spectator sport
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Bets are being taken on which way gold prices will go with safe haven investors clashing with those who believe the worst of the COVID-19 pandemic is over and markets are now in recovery mode.
Over the past three months, gold prices have ranged between $US1,700 and $US1,790 an ounce for the most part.
>>Scroll down for the top small cap movers over the past week>>>
“It’s a huge band, but it’s also telling of the dynamics in the market,” investing.com commodities analyst Barani Krishnan said.
“The variables range from the second wave of the pandemic and the dollar debasement that could come from the trillions the US has already thrown at the problem, to a V-shaped recovery and gigantic revaluations in asset pricing that could follow.
“There is absolutely no certainty where the swinging pendulum will ultimately rest, and that’s what makes gold such an interesting watch.”
In the US, the infection rate in Texas has doubled from 4.5 per cent to 9 per cent since late May, while concerns have been raised that the UK’s move to ease travel restrictions and reopen pubs and restaurants will lead to another wave of infections.
Gold bulls will also be buoyed by the US considering new tariffs on exports from the UK, Spain, France and Germany, adding to ongoing tensions between China and the US.
Meanwhile, market pundits point to progress in the development of potential vaccine candidates with volunteers testing a new vaccine in the UK.
UK researchers have identified an old anti-inflammatory drug that improves the chances of survival for those who need oxygen or ventilators to survive, while Australian researchers have found a potential blocker that prevents COVID-19 from replicating.
China’s rapid recovery to date and the slower rate of infections in Europe have also been singled out as reasons for a broader market recovery.
Here’s how ASX gold stocks performed for the period June 19 – June 26 [intraday]:
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Metalicity (ASX:MCT) has been a shining star this week after reporting that initial holes in its 2020 drilling campaign highlighted the potential of its Kookynie project to be a prolific, open pittable gold mine.
Drilling at the Leipold prospect returned results of up to 4m at 16.3 grams per tonne (g/t) gold from 42m, including 3m at 20.7g/t gold from a depth of 42m.
It continues the company’s streak of successful drilling programs, with the assays from the remaining 33 holes over the Leipold and McTavish prospects likely to be closely watched.
Gold hits were also responsible for Rox Resources’ (ASX:RXL) strong performance this week.
Shallow infill drilling at its Grace prospect returned some very high-grade hits including 4m at 88.81g/t gold from 27m and 11m at 18.75g/t gold from 8m.
The latest results will be complemented by upcoming diamond drilling to define a maiden resource estimate.
Alkane Resources’ (ASX:ALK) infill drilling at its Tomingley gold project in New South Wales has also proved to be remarkably successful, returning thick high-grade intercepts.
Notable results from the Roswell and San Antonio deposits include 69m grading 9.12g/t gold from 218m and 7m at 7.67g/t gold from 186m respectively.