Gold Miners Off to Strong Start, St Barbara Share Price Rockets 5.64%

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The St Barbara Limited [ASX:SBM] share price is off to a racing start this morning, climbing 5.64% on the back of gold and silver gains. The shares are trading at $3.56 at time of writing.

While not all gold producers have managed to push higher this morning, Evolution Mining Ltd [ASX:EVN], Saracen Mineral Holdings Ltd [ASX:SAR], Northern Star Resources Ltd [ASX:NST], and Newcrest Mining Ltd [ASX:NCM] have all made considerable gains.

St Barbara’s share price has clearly been the better performer this morning, making up for a sluggish past few days.

Fellow Australian gold producer Evolution Mining hasn’t been far behind, with a 3.80% gain to $2.73.

What caused the rise in Aussie gold producers?

It seems that the Australian market has reflected a similar trend out of Europe and North America overnight.

News coming out of Italy warns of a Greek-style crisis as Italy’s finance minister, Giovanni Tria, had his efforts to promote his government’s new fiscal strategy end in failure. The turmoil appears to have given gold and silver a haven-demand boost at a time when fund managers are looking to precious metals to rebalance their asset mix

Aussie finance expert reveals four Aussie stocks he believes could be top performers in 2018. Get your free report now.

Gold and silver prices soared early in New York, with gold contracts equal to some 1.57 million ounces traded. That is almost 12 times the 100-day average for this time of day.

St Barbara share price

Source: Bloomberg

What’s next for St Barbara and Aussie gold producers?

On just the third day of trading for October, it is anyone’s guess whether this trend will continue. However, with the ever present anti-EU sentiment growing in Italy and its now botched efforts to cut its deficit, we could see more investors continue to take a more risk averse approach.

With gold hitting a one-week high, and silver hitting its four-week high, these bullish markets are certainly encouraging.

Gold futures for December went up 1.5% to US$1209.70 per ounce, set for the biggest gain since late August. Silver futures advanced to 3.1% to $14.95 per ounce, also its biggest gain since late August.

PS: If you’re thinking now is the time to jump back into gold investments, first read this before you buy gold: Download for free now: ‘Why You Should Wait to Buy Gold Stocks’.

Regards,

Ryan Clarkson-Ledward,
For Money Morning

About Ryan Clarkson-Ledward

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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