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Gold miners surge again: Is it time to buy?

The Australian share market has followed the lead of international markets and is down sharply today after the Trump-Comey controversy continues to intensify and weigh heavily on investor sentiment.

Unsurprisingly this has led to a flight to safety and taken the spot gold price to its highest level in two weeks.

At present the spot gold price is fetching approximately US$1,258 an ounce.

As you might expect, Australia’s leading gold producers have surged higher today and taken the S&P/ASX All Ords Gold (Index: ^AXGD) (ASX: XGD) 2% higher.

Highlights include the Newcrest Mining Limited (ASX: NCM) share price and the St Barbara Ltd (ASX: SBM) share price which are each up around 3%.

Elsewhere Regis Resources Limited (ASX: RRL), Resolute Mining Limited (ASX: RSG), and Perseus Mining Limited (ASX: PRU) have also made notably strong gains.

Should you invest in gold?

Whilst I do think that a little bit of exposure to gold is good for a balanced portfolio, I’m still not overly convinced that now is the time to open a position.

If rates in the United States do rise as expected this year regardless of the Trump-Comey saga, then I expect the gold price and miners to come under pressure.

But if you’re not as bearish on gold as I am then adding a bit of gold to your portfolio with an investment in a high quality miner like Newcrest may not be a bad idea.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

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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