Here’s why the gold miners are being SQUASHED today

It certainly hasn’t been a great start to the day for many of Australia’s leading gold miners.

In morning trade the S&P/ASX All Ords Gold (Index: ^AXGD) (ASX: XGD) has fallen 4.5% as investors’ appetite for risk returns following the result of the French election first round.

With Independent candidate Emmanuel Macron now favourite to win the election in a fortnight, fears that France could be next to leave the European Union have abated for the time being.

This has led to the spot gold price retreating almost 2% from its high last week to US$1,261 an ounce today.

Notable declines in the sector include the St Barbara Ltd (ASX: SBM) share price, the Regis Resources Limited (ASX: RRL) share price, the Resolute Mining Limited (ASX: RSG) share price, and the Beadell Resources Ltd (ASX: BDR) share price.

At the time of writing the shares of each of these gold miners have tumbled around 6%.

What’s next?

Whilst I am bearish on the gold price in the long-term due to rate rises in the United States, in the short term I do believe there is a chance it could hold firm at current levels or even edge higher.

Rising tensions in North Korea and a potential surprise result in the French election could be catalysts to driving the precious metal’s price higher over the next few months.

But despite this I wouldn’t suggest investors gamble on gold. Leave that to the day traders and focus on high quality investment options in the information technology or healthcare sectors instead.

There are plenty of quality companies trading at great prices which I expect to provide far greater returns over the next 12 months than the gold miners.

These explosive shares for example would be far better investments today in my opinion. I'd be very surprised if they didn't outperform the likes of Resolute and St Barbara over the next 12 months.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you’re expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you’ll be sorely disappointed. Not only are their dividends growing at a snail’s pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these “new breed” blue chips couldn’t be greater… especially the very real prospect of significant share price gains, something that’s looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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