Regis Resources leads gold miner rally as spot price holds record gains
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The news: Gold miners were some of the biggest gainers on the ASX 200 as the spot price of the safe haven asset continues moving closer to a new record high.
Regis Resources was chief among the gainers after Morgans analysts lifted their price target on the stock.
The numbers: At 12:02pm AEST, shares in Regis Resources were up 5.3% to $5.08, the second biggest gain on the ASX 200. Morgans analysts lifted their target price on the stock from $5 to $5.80 to reflect the material increase in gold prices.
Genesis Minerals (+4.8%), Vault Minerals (+3.9%) and Bellevue Gold (+2.6%) were also higher. The spot price of gold had ticked up by about 0.2% to USD3,551.36 ($5439.32) per ounce.
The context: Demand for gold has surged this week on expectations the US Federal Reserve would cut interest rates later this month and as a hedge following a selloff in the equity and bond markets.
Data released overnight also indicated that hiring at US companies increased at a slower rate than expected, about half the rate in the preceding month, bolstering the view that the US labour market is deteriorating.
Goldman Sachs analysts flagged on Thursday that the spot price could near USD5,000 per ounce if US President Donald Trump erodes the independence of the Federal Reserve such that 1% of privately-owned US Treasury bond holdings were replaced with gold.
