Gold prices have dropped from their overnight highs but continue to hold support above $1,850 an ounce; Commodity analysts note that the market generally lacks conviction in any direction as U.S. markets were closed for the Memorial Day long weekend.
Spot gold prices are trading in neutral territory, last traded at around $1,853 an ounce.
Analysts note that the precious metal is trading in the middle of its broader long-term range. Although gold prices continue to benefit from a weaker U.S. dollar, rising risk sentiment, helping to boost equity markets, is taking some shine off the yellow metal's safe-haven allure.
However, some analysts have said that the jump in the S&P 500 last week was a classic bear market. Analysts have said that rising fears of an impending recession will continue to weigh on equity markets.
All of this to say, gold will continue to perform as a strong hedge against the coming market storm.
Damara Gold (TSXV: DMR) is one high-potential micro-cap play on my radar right now. The company has continued to intersect high-grade gold at its Placer Mountain project, with the most recent reports highlighting yields up to 46.51 g/t.
$DMR.v is currently trading around historic low support at $.045, presently valued at CAD $3.13 million.
The company recently doubled its land holdings in the Copper Mountain district as well, so I look forward to hearing updates on this.
https://ceo.ca/@thenewswire/damara-continues-to-intersect-high-grade-gold-at-kodiak