Scotiabank lifts gold price forecast and upgrades Newmont, Barrick
Investing.com-- Gold mining stocks fell across Asia on Wednesday, tracking a sharp overnight decline in bullion prices as traders locked-in profits after a stellar, record-high rally in the yellow metal.
China’s Zijin Mining Group Co Ltd (SS:601899) and Zhongjin Gold Corp Ltd (SS:600489) shed 3% and 4%, respectively, while Australia’s Evolution Mining Ltd (ASX:EVN) and Northern Star Resources Ltd (ASX:NST) slumped around 10% apiece.
Spot gold prices slid some 6% from a record high of over $4,381.6 an ounce on Tuesday, with the yellow metal logging its deepest intraday loss in years.
But gold stemmed a bulk of its losses on Wednesday, rising marginally in Asian trade. Broader precious metals also saw some stability after tracking gold’s overnight rout.
The drop was driven chiefly by profit-taking as a mix of safe haven demand and a speculative frenzy sparked sharp gains in gold.
ANZ analysts said speculative positioning in gold “had built to substantial levels and ultimately triggered the selloff.”
But they noted that gold’s long-term drivers still remained in place, especially as markets fretted over slowing global economic growth, heightened geopolitical tensions, and expectations of lower U.S. interest rates.
Gold mining stocks had largely tracked gold’s stellar rally this year, with some shares even outpacing gold’s gains on strong exposure and relatively lower valuations.