Gold shares
Comment of the Day

January 02 2014

Commentary by Eoin Treacy

Gold shares

Eoin Treacy's view

While the vast majority of stock market sectors finished 2013 in positive territory, gold mining stocks were significant outliers. In fact they were the worst performing sector on the S&P500 losing 48% in 12 months. It is therefore notable that on the first day of trading in 2014, gold shares were the best performing sector, rallying over 4%. 

Newmont Mining was the worst performing share on the S&P 500 last year and was the second largest gainer today. A reversion back up towards the still declining trend mean may now be underway but a break in the medium-term progression of lower rally highs would be required to signal a return to demand dominance beyond the short term. 

Sibanye Gold was among the best performers in what was a weak sector last year. It firmed today within its one-month range and a sustained move below $4.50 would be required to question recovery potential. 


Back to top

You need to be logged in to comment.

New members registration