from Truth in Gold:
Shares in Australian gold miners rallied hard on Monday, with Northern Star Resources even hitting a new all-time high on an improved outlook for the precious metal.
The spot gold price jumped 2.2 per cent to $US1136 an ounce on Friday night, the biggest increase since mid-January, after a lacklustre US jobs report dented expectations the US Federal Reserve will lift rates this year.
“Today could be a game-changer, because nobody expected this sort of a jobs report,” George Gero, precious metals strategist for RBC Capital Markets, said.
In Asian trade on Monday, the gold price managed to hang onto Friday’s jump, inching up to $US1137 an ounce
But the price gains were outperformed by an 7.5 per cent jump in the All Ordinaries gold shares index, which added nearly $2 billion in value.
By close of trade Monday, Newcrest was up 9.6 per cent to a four-month high of $13.80, Evolution Mining was up 7.5 per cent to $1.36, its highest in 2.5 years, Northern Star Resources was up 5.9 per cent to an all-time high of $2.85, OceanaGold lifted 7.4 per cent to $2.16 and Beadell Resources increased 10.3 per cent to 16 cents.
The session’s strong gains are part of a longer-term trend; the All Ordinaries gold mining index has easily outperformed the broader All Ordinaries over the past 12 months.
“Gold prices are doing very well at the moment,” said IG markets dealer Chris Weston. “There’s a genuine belief that gold prices have seen the lows now and you’re seeing good volumes coming into the buying.”
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