Today’s focus will be on gold mining stocks, which were part of a handful of ASX stocks to escape the carnage of the past couple days. Big gains for gold stocks could be around the corner. Why is this you ask?
In order to forecast future gold prices its important know what influences it. There’s a lot of things happening beneath the surface that could prove very beneficial for the price of gold in upcoming months and well into 2019.
As of late, the company’s focus has been to invest and improve in the exploration, extraction and development of the precious metal gold. Unfortunately, this left St Barbara tackling a difficult last quarter of FY18, with around $1.22 million of the $2.32 million insider shares being divested since March of this year.
A host of Australian gold producers have made considerable loses this morning after a day of strong gains yesterday. One of yesterday’s top performers, Northern Star Resources Ltd [ASX:NST], is down 3.55% to $8.43, from $8.73 at close yesterday.
Yesterday I discussed the gold price and provided some reasons as to why the yellow metal could move higher in the months ahead. Let me emphasise the word could.
What’s going on with the gold price? In US dollars (the most important global benchmark), it’s trading just over US$1,200 an ounce, after being well above US$1,300 an ounce earlier in the year.
Australian mineral mining company St Barbara Limited [ASX:SBM] have seen a shocking 9.8% decrease in their share price today at time of writing. In the last three months, there have been more shares sold than bought by St Barbara’s insiders.
The net short position in gold futures is now 26,500 contracts. At the depth of the bear market in December 2015, there was only two weeks where the positioning was more extreme, at 27,200 contracts.
Today, I’ll take a look at the Aussie dollar gold price, which adjusts for the difference between the US and Aussie dollar exchange rate. This is a far more important price to watch for Aussie gold stock investors.