Aussie gold stocks hammered after Donald Trump is elected President of the United States

[Pelican Press 0]

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Aussie gold stocks hammered after Donald Trump is elected President of the ******* States

Donald Trump’s return to the White House has wiped billions of dollars from ***********-listed gold stocks on Thursday.

Gold mining heavyweights Northern Star Resources, Evolution Mining and Westgold Resources all shed at least 6 per cent..

Northern Star’s losses alone equated to more than $1.2b of shareholder wealth going up in smoke.

Market darling Spartan Resources was the worst hit, with the WA explorer down about 16 per cent by midday.

Citi analyst Paul McTaggart on Monday correctly predicted that Mr Trump re-ascending to the US presidency, plus a strong showing from the *********** Party in elections for the Senate and House of Representatives, would hurt the gold price.

The Republicans have won back the Senate and are currently leading the House vote count.

“A Trump victory and especially a red wave — widely perceived as positive for US equities — could lead to tactical selloff in gold amid rotation into equities,” Mr McTaggart said on Monday.

The gold price in *********** dollar terms declined 2.8 per cent overnight — trading at $US2656 ($4010) an ounce — while the benchmark US stock index surged 2.5 per cent.

Gold had been on a bull run as a combination of falling interest rates in the US and extreme global volatility stemming from wars in the Middle East and Eastern Europe buoyed demand for the safe-haven precious metal.

Mr McTaggart believes the longer term

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for gold under a Trump presidency is positive.

“While the knock-on impact of the US election looks negative on gold, we recommend buying into any major dips as we continue to see much more room for prices to rise to $US3000 per ounce over the next six months, underpinned by a continued deterioration in the US labour market and rising ETF demand,” he said.

“Long-term themes such as ballooning global debt levels and alternative-fiat demand amid de-dollarization are also structurally supportive for gold.”

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#Aussie #gold #stocks #hammered #Donald #Trump #elected #President #******* #States

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