Sell AUD Gold exposure
March 25, 2023 1 Comment
Gold in AUD is trading at ‘extreme’ highs.
It is overbought on a weekly basis and has traded to 2.5 standard deviations above its weekly mean.
Furthermore, the percentages show the amount which AUD Gold is trading above its 200 week moving average.
It makes for a difficult case to initiate new ‘long’ positions.
On another note, if you are an Australian gold explorer who has established their resources and/or reserves but you are at the stage of being pre-production plant construction……I think it may be prudent and clever to sell your project to an eager incumbent producer (seeking resource replacement) in light of the high AUD Gold prices and more so when coupled with the higher capex costs, let alone higher financing costs that you will be facing.
March 25, 2023
by Rob Zdravevski
rob@karriasset.co.au
About Rob Zdravevski
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Your recommendation to sell gold now is a little premature. While the banking crisis continues _ Duesche Bank is now in some trouble – gold will stay high. Gold is a useful hedge in troubled times.