ASX Gold Stocks and All Ordinaries Gold Index Capturing Investors’ Eye Amid Recovery in Gold Prices

  • Nov 27, 2019 AEDT
  • Team Kalkine
ASX Gold Stocks and All Ordinaries Gold Index Capturing Investors’ Eye Amid Recovery in Gold Prices

Gold is returning to its base level of USD 1,500 per ounce post sliding down to the USD 1445.43 (low on 12 November 2019). The increase in prices remained supportive by the purchase of the global gold-backed ETFs, which is now again supporting the ASX gold stocks along with the significant development across the quality assets by the ASX gold mining companies.

To Know More, Do Read: ASX Gold Stocks Under Pressure Despite Progress Across Quality Assets- RSG, KLA, and SAR

The SPDR Gold Trust added 150,714.3 ounces of gold (as on 26 November 2019), which remained 0.53 per cent higher against its previous holdings of 28,671,987.2 ounces of gold, and other prominent gold-backed ETFs followed the same.

While the prominent gold-backed ETFs are adding gold into the overall holdings, the ASX gold stocks showing signs of recovery with improvement in the gold prices.

However, despite a slight change in gold prices, which went down to mark a low of USD 1450.18 (on 26 November 2019) post the announcement that the United States and China are moving closer to a deal, the ASX gold stocks are showing good upside as mining companies in Australia made significant progress in the recent times to enhance their asset portfolio.

Kirkland Lake Gold Limited (ASX: KLA) recently decided to acquire the Canadian gold explorer Detour Gold Corp, while Resolute Mining Limited (ASX: RSG) decided to install a new hybrid modular power station at its flagship Syama Gold Mine, and Saracen Mineral Holdings Limited (ASX: SAR) moved to acquire the stake in the Superpit Gold Mine.

Read Here: Saracen To Acquire Superpit Gold Mine, and Replace Barrick Gold in KCGM JV With Newmont

SAR also hedged additional 200,000 ounces of gold to take the overall hedge to 541,500 ounces of gold at an average price of $1,990 per ounce recently, while Evolution Mining Limited (ASX: EVN) decided to acquire the Red Lake Gold Complex in Canada from Newmont Gold Corp.

Read Here: Evolution Mining To Develop Another Cornerstone Asset As It Acquires Red Lake Gold Complex?

While there are plenty of gold stocks listed on the Australian Securities Exchange and almost each of them is progressing across the prospects to take advantage of the high gold prices. It could become onerous to pick a few to incorporate in the portfolio.

To know, why you should incorporate gold stocks in your portfolio, and which parameters could help you to select, Do Read: Does Gold Investing Intimidate you? Discover the Right Parameters for Astute Judgement

How Are Gold Stocks Trading on ASX?

Newcrest Mining Limited (ASX: NCM)

The stock of the company fell from the level of $38.090 (high on 25 September 2019) to the level of $29.800 (low on 8 November 2019). However, the stock tried to climb on charts and reached $31.380 (high on 19 November 2019) but fell again.

Over the last two trading sessions, the stock is moving up with a decent increase in volumes. NCM rose from the level of $30.000 (low on 26 November 2019) to the current high of $31.160 (as on 27 November 2019).

Northern Star Resources Limited (ASX: NST)

The correction in gold prices took the stock price of the company down from its recent peak price of $14.050 (high on 23 July 2019) to the level of $8.850 (low on 8 November 2019).

Just like NCM, NST also tried to take a U-turn, and the stock price surged from $8.850 to $9.480 (high on 15 November 2019). However, the stock plunged again to the level of $9.000 (low on 25 November 2019).

In the status quo, the stock is showing an upside momentum with price trading in positive territory with decent volumes from the past two trading sessions. The stock rose from $9.000 to the present high of $9.520 (as on 27 November 2019).

Tribune Resources Limited (ASX: TBR)

Just like other ASX gold stocks TBR also took a hit amid the correction in gold prices, and the stock fell from the level of $8.800 (high on 25 October 2019) to the level of $5.960 (low on 20 November 2019). However, the stock witnessed a large gap-up opening during the very next trading session on 21 November 2019 at $6.500 to reach a high of $6.680.

Post reaching to the level of $6.680, the stock tumbled again to the level of $6.000 (low on 26 November 2019), but in the status quo, the stock is again trading up; however, with lower volumes. During the trading session on 27 November 2019, the stock made a high of $6.310.

Gold Road Resources Limited (ASX: GOR)

GOR plunged from its recent peak of $1.645 (high on 9 August 2019) to the level of $1.005 (low on 22 October 2019) over the fall in gold prices in the international market; however, the stock recovered swiftly after that to $1.205 (high on 4 November 2019).

GOR again corrected from $1.205 to the recent low of $1.030 (low on 26 November 2019), but the prices rose with decent volume in the past two trading sessions to reach at the present high of $1.150 (as on 27 November 2019).

Dacian Gold Limited (ASX: DCN)

The share of the company plunged significantly from the level of $2.880 (high on 27 February 2019) to the level of $0.375 (low on 7 June 2019) and witnessed a massive gap down opening of approx. 37 per cent on 6 July 2019 post the announcement of a decline in production and increased production cost.

Read Here: Dacian Gold Revised Production And Cost Guidance For June Quarter; Stock Trades Lower

However, post falling to $0.375, the stock recovered on ASX and reached the level of $1.655 (high on 23 September 2019). Since then, despite the ongoing correction in gold, the stock revolved around the same level of $1.655 and is currently trading at $1.410 per cent (as on 27 November 2019).


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