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.
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.
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.
As far as the timing on that goes, it might pay to keep an eye on the gold price. It’s been under pressure lately, at least in US dollar terms.
The massive investment into liquid natural gas (LNG) over the past decade has resulted in the development of a new export industry. It may finally start to pay off over the next few years.
AuStar Gold Limited [ASX:AUL] shows that it’s benefiting from this boom, as its shares have risen by 12.50% during the day.
If you want to get into an asset in a bull market instead, take a look at gold. Since bottoming in late 2015, gold has been in a bull market. It’s just that most people haven’t noticed. Early bull markets are tough to identify, in the same way that early bear markets are tough to identify.