While the S&P/ASX 200 (INDEXASX: XJO) endures another down day – at lunchtime Friday the index is off a further 0.7%, gold stocks are staging a comeback.
Amongst the top ten biggest gainers for the day within the benchmark S&P/ASX 200 index, no less than five stocks are gold producers!
Here are the big movers:
- The $10 billion giant Newcrest Mining Limited (ASX: NCM) is up 6.6% and approaching its 52-week high
- The $300 million Beadell Resources Ltd (ASX: BDR) has jumped 9.1% but is still trading much closer to its yearly low than its yearly high.
- The $1.1 billion Northern Star Resources Ltd (ASX: NST) has gained 6.8% and has hit a brand new 52-week high of $2.
- The $640 million EVOLUTION FPO (ASX: EVN) has seen its share price rally over 5% and touch a high of 91 cents today which takes it within about 10% of its 52-week high of $1.02.
- The $1 billion Regis Resources Limited (ASX:RRL) has added nearly 5% but still remains mid-range between its 12-month top and bottom.
Global macro trend driving gold higher
Overnight, gold hit an 18-week high of US$1,265 an ounce. This calendar year alone, gold has rallied nearly 7%. The increased demand for gold is being driven by the uncertain outlook for the global economy which has endured a huge oil price crash over the past few months, amongst other concerns. The latest event to drive investors into the safe haven precious metal was the dramatic unpegging of the Swiss Franc which sent its currency soaring over 30% yesterday.
With volatility like this it's no wonder some savvy investors are utilising gold as a hedge against risk. What's more, there could be plenty of room left to run for the gold price and gold stocks.
