Major gold stocks have declined in the past two and a-half
weeks, as investor uncertainty prevails over the United
States Federal Reserve tapering off its economic stimulus
Oceana Gold shares were down 24.5% for the period at $2.04
yesterday, Newcrest Mining was down 11.7%, from $A14.17
($NZ16.13) to $A12.50 and Regis Resources down 3.2% from
$A4.35 to to $A4.21.
Global spot gold prices in the past month hit a high of
$US1420 ($NZ1748), in late August, but had since declined,
trading in New York yesterday in a range of $US1360-$US1366.
Craigs Investment Partners broker Peter McIntyre said the
stocks of both major companies and junior companies were
coming under pressure as the US dollar gained strength.
Relative junior Santa Barbara was down 25.8%, trading between
A89c and A66c yesterday.
''Investors are reacting to news of the Federal Reserve
tapering its funding. That means a stronger US dollar, which
works against the gold price,'' Mr McIntyre said.
Last weekend's Australian election win by Tony Abbott and the
Coalition was seen as positive for the resource sector, the
removal of mining and carbon taxes estimated to boost the
sector's overall valuation by up to 4%.
However, the initial benefits would be for the
carbon-producing companies, and BHP Billiton shares had
gained 2.7%, from $A35.61 to $A36.63, in the past two weeks,
Mr McIntyre said.