MENU

Gold miners sink lower again

The market may be sinking into the red again today, but one area of the market has fallen more than most.

At the time of writing the S&P/ASX All Ords Gold (Index: ^AXGD) (ASX: XGD) is down 1.5%, wiping out all of its weekly gains.

Here’s the state of play in the industry at lunch:

  • The Doray Minerals Limited (ASX: DRM) share price has fallen 5% to 27 cents.
  • The Newcrest Mining Limited (ASX: NCM) share price is down 2% to $22.52.
  • The Northern Star Resources Ltd (ASX: NST) share price is off 2.6% to $5.89.
  • The Resolute Mining Limited (ASX: RSG) share price has fallen 2.2% to $1.10.
  • The Saracen Mineral Holdings Limited (ASX: SAR) share price is down 2.8% to $1.52.
  • The Silver Lake Resources Limited. (ASX: SLR) share price has dropped 2% to 39 cents.

What happened?

The gold price has come under pressure in recent days after bond yields widened in the United States.

Generally, as risk-free bond yields increase the gold price will fall as the precious metal loses appeal with traders due to its lack of yield.

So with rates in the United States expected to rise three times this year, I suspect bond yields could continue to widen and put further pressure on the gold price. This could make it a good time to consider taking profit on the gold miners.

It isn’t all bad news today.

There has been one bright spot amongst the sea of red. The OceanaGold Corporation (ASX: OGC) share price has climbed almost 5% higher today after reporting record annual gold production yesterday after the market closed.

OceanaGold achieved record annual production of 574,606 ounces in FY 2017 at an unaudited all-in sustaining cost of US$617 per ounce. This was an impressive 38% lift in production and a 13% reduction in its all-in sustaining costs.

Instead of risking money in the gold miners, I would suggest investors consider these exciting growth shares.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro has no position in any of the 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!