Rising bullion price boosts gold equities

Rising bullion price boosts gold equities

A rising gold price that touched US$1,228.60 an ounce on the spot market earlier today outshone a mixed period on equities markets.

Geopolitical tensions have increased between the US and Saudi Arabia over a journalist’s disappearance, sending oil prices higher, and Brexit talks stalled yesterday.

Toronto’s gold sector was up almost 0.9% on the S&P/TSX Composite Index yesterday and diversified miners gained just over 1%.

Among the juniors, gold explorer and new market darling Great Bear Resources (TSXV: GBR) rose more than 20% to a fresh 52-week high of C$3.21, representing a gain of almost 713% year-to-date after announcing results of a summer mapping programme at its Dixie gold project in Ontario.

Rusoro Mining (TSXV: RML) shareholders were also smiling with the stock rising a further 56.82% yesterday to a fresh one-year high and a gain of about 393% year-to-date, as the market continued to digest news of a long-awaited settlement with Venezuela that could see the pair team up to restart expropriated gold assets.

In London, Rio Tinto (LSE: RIO) had gained 1.69% yesterday ahead of today announcing lower iron ore production for the September quarter due to maintenance and a fatality at Paraburdoo.

Gold miner Randgold Resources (LSE: RRS) rose more than 5% as its proposed merger with Barrick Gold looms.

Metals and mining stocks were in positive territory on the ASX in late afternoon trade with the gold sector on the S&P/ASX200 index up around 2.5%.

Western Australian-based Saracen Mineral Holdings was leading the way with a gain of 4.9% at the time of writing after it announced record quarterly gold production.

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