Gold Prices Tumbled And Dragged Down The Gold Miners On ASX

Gold Prices Tumbled And Dragged Down The Gold Miners On ASX

Gold prices plunged once again to mark a fourth consecutive fall in the prices. COMEX gold (GC) futures fell from the level of $1324.50 (Day’s high on 25th March 2019) to the level of $1293.35 (Day’s low on 28th March). Gold prices further fell today (29th March) and breached the previous day low of $1293.35; the prices are currently hovering at $1295.

The factor which exerted pressure on gold prices was the stagnant and slowly rising dollar amid an array of mixed data. The U.S. Dollar Index (DXY), which tracks the performance of the dollar was steady around the level of $97.50.

The U.S. GDP q/q figures were at 2.2%, down as compared to the market expectation of 2.4% for the October-December period.[optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]

However, better employment in the domestic market prevented any sharp fall in U.S. dollar prices. The U.S. Unemployment claims declined to 211K for the week ended 22nd March 2019, as compared to the market expectation of 222k. Bullion investors were banking on rising Unemployment as previous economic indicators suggested that the U.S. economic conditions are detracting, a fall in Unemployment Claims jolted the bullion investors and in turn, exerted pressure on gold prices.

Dollar Index remained steady over the mixed economic figures and in turn exerted more pressure on gold prices, which in turn plunged in the global market.

U.S-10-year bond yield also remained steady around 2.4% and showed no sign of a fall despite weak GDP figures, which in turn further contributed towards a fall in gold prices.

Gold miners on the Australian Stock Exchange slumped over the drastic fall in gold prices.

Evolution Mining Limited (ASX: EVN) fell from the level of A$3.740 (opening price) to mark a low of A$3.630. The share price tumbled and managed to close at A$3.660, down by 3.43% as compared to its previous close. During the day’s session, the prices dived quickly after opening to mark the day’s low.

Another Gold miner, Saracen Mineral Holdings Limited (ASX: SAR) followed the same trajectory. The share prices of the company dropped to mark a low of A$2.860 after registering an open price of A$2.930. The stock managed to close at A$2.900, down by 3.01% as compared to its previous close.

Saracen prices also noticed a gap down opening as compared to its previous close, but the prices somewhat recovered from the day’s low at the end of the day session.

Regis Resources Limited (ASX: RRL), another gold miner on the ASX, plunged from the level of A$5.350 (Day’s high). The share prices behaved somewhat different as compared to the share prices of peer companies. The stock rose initially after marking an opening of A$5.300 towards the Day’s high before falling to the level of A$5.230 (Day’s low).

The stock of the company managed to close at A$5.300, down by 2.03% as compared to its previous close.


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