Some encouraging commentary on gold price fundamentals by Angus...

Some encouraging commentary on gold price fundamentals by Angus Geddes. As PDI transitions towards a mining operation, POG will become more relevant however, for the time being, record gold prices certainly won't hurt PDI's share price.

"....India plans to slash the import duty on gold because higher taxes have made it profitable for smugglers offering hefty discounts to snare market share from banks and refiners. The duty cut by the world’s second-biggest consumer of gold could lift retail sales by making gold cheaper ahead of peak demand season and support global prices. I see this as a strong tailwind for gold in a trading environment where tailwinds are already building. I have written in my notes that I expect the gold price will push through to new record highs in the months ahead.

In terms of the A$ gold chart, spot prices have broken out above near-term resistance and retest of the record high at A$2800 looks to be on the cards in coming months. We have seen the Aussie gold sector rerate strongly in recent months, but many shares remain well below their record highs. This gap should close this year as producers make record margins in local currency. I would not be chasing gold stocks at present given the rising risks of a broader market correction, but this is one sector to buy when opportunity presents itself, potentially in coming months."

Chart - A$ gold