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From Marcus Today newsletter

GOLD DOWN – Aussie Gold down even more - As the Gold price heads towards US$900 a lot of the gold stocks are looking like breaking support with forthcoming results prospects not helped by the 17% rise in the A$ in the last Q and the more precipitous fall in the A$ gold price compared to the US$ gold price.

The A$ Gold price is now 24.8% down from the top compared to the US$ gold price down just 9%.

The Gold price fall and the A$ rise is therefore more damaging for Aussie producers than US$ gold producers like KCN and LGL. On a rise in the A$ the most leveraged to margin erosion are SBM, NGF and AVO according to Patersons. DOM also vulnerable but have a strong balance sheet ($50m cash no debt), stable production and the possibility of takeover action and a capital return. They like SLR and AND and RSG (depending on their Syama project success - lots of upside and downside depending on success). If the time comes to buy gold stocks again everything’s a BUY and on top of the majors they highlight more speculative stocks including AMX, IDG, RRL, IAU and TRY. But bottom line….nothings a buy until the gold price goes up and it isn’t. Waiting for the turn now.