Friday's 4.5% fall in the All Ordinaries gold index was consistent with the warning in my 4 February wire and each of the PortfolioDirect weekly reports since...
PortfolioDirect
Friday's 4.5% fall in the All Ordinaries gold index was consistent with the warning in my 4 February wire and each of the PortfolioDirect weekly reports since then highlighting the vulnerability of the Australian gold sector to a downside move. At the close on Friday, I posted a view on our website ((VIEW LINK) with the attached chart reiterating the risk of the index dropping another 8-10% which I had expected imminently without a move in gold prices. In overnight US markets, gold fell following a strong monthly employment report which was accompanied by a fall in bond prices and a rise in the US dollar. Now, a fall in sector prices of 5-10% is highly likely on Monday in Australian trading. A reversion to the bottom end of the Australian gold sector trading range which I had been expecting would imply a 20% decline. There still appears little reason to hold the sector until prices can first stabilise around that lower level.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise