Gold stocks extend gains as spot price stages recovery
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The news: Gold miners rallied on the ASX as spot gold continued to stage a recovery, having tumbled since the result of the US election at the start of the month.
The numbers: Gold stocks Vault Minerals (6.2%), De Grey Mining (4.6%), Genesis Minerals (4.5%), Northern Star Resources (4.4%) and West African Resources (4.1%) made up five of the top 10 performing companies across the ASX 200 by 2:20pm AEDT.
Newmont gained 2.88% and announced earlier today that it was selling its Musslewhite operation for up to $1.3 billion.
However, materials, up 0.3%, was the worst performing sector as the wider market rose 1.24%.
Spot gold was up 0.49% to USD2,624.63 ($4,031.69), according to Bloomberg data.
The context: Gold prices have strengthened since Monday after falling around 7% from a record high last month, with the US election result helping the greenback to a two-year high. Traders are now weighing up the chances of a rate cut next month, which may bolster gold prices.
The source: Bloomberg
