Soft gold prices, deal fatigue and Xmas slowdown

Gold company share prices are continuing to erode as the gold price weakens and fails to respond to the same events that were driving the price higher earlier in the year. The occasional rallies have so far just given us false hope. As good as some of the new discoveries have been for some companies, there is no forward movement when the wind is blowing against them.

The oil sector continues to be back in favour. Copper is still benefiting from expectation of increased demand. Rare earth stories are in the most part well supported, and even uranium is making a comeback but without the benefit of a stronger commodity price, yet.

It has been a great year for resource stocks with so many capital raisings that the inevitable deal fatigue syndrome has started to kick-in, as the broking community starts to wind down for Christmas. Maybe there will be a post Christmas/early New Year rally, but as we gradually return to normal next year, the question will be whether or not we will see the same level of buying and trading that has buoyed the market in 2020. Time will tell.
 

 WeeklyComm12December2020.pdf