After posting a 2-year high at $1370 in early April, the price of Spot Gold has dropped over 6% and made an intra-day low of $1281 during Monday’s trade.
The yellow metal has now firmed into the $1295 area and looks set to trade back over $1300 over the near-term.
Our ALGO engine triggered a buy signal in OGC into yesterday’s ASX close at $3.32.
In addition to the recent slide in Spot Gold, shares of OGC have been pressured lower after its Q1 update showed that production and sales were both lower due to severely cold weather at its Haile Mine in the USA.
The daily charts show solid support in the $3.10 area and we see scope for a move back over $3.65 as the spot Gold price moves higher.