On August 8th, Spot Gold posted a low during the New York session of $1254.00.
Overnight, the yellow metal posted a 10-month high of $1341.00, a 7% gain in less than a month.
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Over the same period of time, Newcrest mining has rallied from $20.25 to post a high of $23.70 early in yesterday’s session. This move represents a bit less than a 17% gain.
Even though the heighten geopolitical tensions which have supported the Gold price are still very much a part of the market, technical momentum indicators are signalling that investors can expect a short-term correction lower.
We believe the medium-term price trajectory in Gold will remain intact after the overbought conditions are alleviated.
As such, we suggest taking profits today in NCM, along with the smaller Gold miners: EVN, SAR, NST and OGC.
Newcrest
