The best gold miners on the S&P/ ASX200 (ASX: XJO) are getting carted today on the back of a tumbling gold price. Overnight the precious metal tumbled around US$24/oz to US$1,469/0z on the back of news the US and China may agree to a phased removal of reciprocal trade tariffs.
Take a look at how gold miners dominate the losers board on the ASX 200 today.
Source: ASX website Nov 8, 2019.
We can see that Saracen Resources Ltd (ASX: SAR), Northern Star Resources Ltd (ASX: NST), Resolute Mining Limited (ASX: RSG) Silverlake Resources Ltd (ASX: SLR) and Regis Resources Ltd (ASX: RRL) are all getting hammered today.
Given the macro-fundamentals of low interest rates, rising debt, and global monetary loosening it’s not hard to make the bull case for the gold price. But then again you could argue that if the gold price couldn’t get a real wriggle on over the last 12 months it’s not going to over the medium term.
While if the US/China trade war does de-escalate this is also likely to be a net negative for gold.
More generally the gold price can move in mysterious ways and speculating on it too heavily either way is not a sensible investing strategy.
Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.