The overseas gold mining indicies were holding their ground last friday , despite the drop in the POG. Both the HUI and GDX indicies outperformed the broader market by a fair margin.
Why is this?
Its reporting season over in the US and Canadian markets with many mainstream co's bringing out less than average earnings.
I'd say the gold producers are some of the few co's that are showing steady quarter on quarter growth and investors are starting to take note and are buying the dips.
If this growth trend continues , we're likely to see alot more money pouring into the sector , especially if the gold price can stabilise over $1700/oz and above for the next 12 months.
On another note , I see that our ASX gold stocks have not escaped the drop in the POG this morning. But, the HUI index was down 1.5% at one stage of friday before mounting a pretty decent afternoon rally into positive territory.
Lets see if our goldies follow the same pattern today.
AMX Price at posting:
63.0¢ Sentiment: LT Buy Disclosure: Held
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