Gold and Copper Prices Going Higher?Well that's what this analyst thinks...and guess what Newmont's two largest mined assets are? Oh yeah, it's 136 million ounces of Gold and now 30 billion pounds of Copper too following their Newcrest acquisition and then there's the 600 million ouncres of silver reserves! Yet Mr. Market doesn't seem to be factoring in the copper aspect or silver....at least not YET.
Gold Price Suffers Biggest Daily Loss In 2 Years (msn.com) Newmont Corporation - Newmont Announces 2023 Mineral Reserves for Integrated Company of 136 Million Gold Ounces with Robust Copper Optionality of 30 Billion Pounds When this big dog wakes up and starts barking, Wallstreet will be running for the hills. For now they keep poking their head into the kennel and taunting the beast. I can hardly wait to see where Newmont's share price will be by the end of 2024. I agree with ecolo101 that this is just a little correction that is needed before Newmont share price can continue to move higher.
Gold price corrections historically (in my experience) are about $150 so using $2450 as gold's recent high we could see gold fall to around $2300 before it takes another run higher. However, any number of geopolitical events could trigger a swift upward move in gold and silver prices to resume and so I expect the volatility to continue. The short sellers and day traders using margin accounts best pay close attention if they're playing with this stock.
Those who have an investment time horizon longer than a few hours or days will do just fine unless or course Russia stops fighting with Ukraine, Israel and Iran become besties, China stops threatening Taiwan and the Phillipines, and the Leader of North Korea crawls back under the rock from which he came.... just to name a few. The US debt and unprecedented political situation pales by comparison but hey it's all good (yeah right). Even applying my most optomistic outlook, I frankly can't see even one of these scenarios changing any time soon! So how is it that gold is now down $73 US as I write? Simple, because don't you know...the narrative has changed from geopolitics to the Fed probably isn't going to cut rates now by a 1/4 percent in 2024.
If the US were really worried about inflation, let the price of oil go back over $100 bucks and gas prices at the pumps in the US go to $6 bucks a gallon and you'll see how fast consumers will cut back on their spending. Canada is no different with Trudope continuously driving up Canadian debt by throwing billions more in spending into the economy and then wondering why they can't get a handle on inflation. But then how do you stay in power if you don't buy votes.
My opinion only, DYODD.
HB77