Gold price rises, US earnings season throws up a couple of smokies … and will the ASX be bullish or bearish?
According to data from ABC Bullion, Australian gold prices hit three-year highs this week, reaching $2673.56. This follows the slump to $2611.57 last week.
The beneficiaries of this gold price rise were gold producers Silverlake Resources and Saracen Mineral Holdings. Silverlake Resources’ shares rose 6.08 per cent to $2.09, while Saracen gained 4.87 per cent to $4.95 per share.
The pair sat second and fifth, respectively, on the ASX‘s top five gains on Friday 15 May. In the short term, Gold may enter a sideways market, consolidating between the $1,650-1,730 range.
This is compared to the United States gold price which hit $US1732.53 ($2682.02). That’s an attractive exchange rate for Australian gold producers.
It has been a rollercoaster ride for gold over the last few weeks.
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