Far East Capital Newsletter
Gold rally is helpful but sentiment has been softer
4 Jun 2016

In This Issue

Weekly Commentary

Gold rally is helpful but sentiment has been softer

The biggest news of the week came on Friday night. The US jobs report proved disappointing with only 38,000 jobs being added last month, thereby causing the US stocks and the US$ to fall. Correspondingly the gold price bounced to US$1,244/oz. All bets are off on a rise in US interest rate soon. We have had a reversal of the thinking that had been dominating the markets in recent weeks.
This will prove a fillip to our mining market next week, especially the gold stocks, but the retreat in sentiment we saw last week might still dominate throughout the month of June. There is nothing to fear out there, but June is always a quiet month. Stocks will tick down, rather than up if sellers want to tidy their books before 30 June. 

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