Spot Gold has started the week close to a 10-month high of $1338.00 as North Korea’s test of a hydrogen bomb triggered the usual shift to safe haven assets, while stock futures are pointing to a lower day for global equities.
Local Gold stocks have opened higher with Newcrest posting a 4-month high of $23.78 in early trade.
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With the US markets closed for Labor Day holiday, we could see some consolidation as technical levels now seem stretched.
Over the medium-term, we expect both the price of spot Gold and the local mining stocks to continue with an upward trajectory.
However, we do see near-term scope for a technical pullback in Newcrest to the $23.20 level, and to the $2.38 level in Evolution Mining.
Newcrest
Evolution Mining
