Randgold Resources (RRS)

Miner Randgold Resources, which develops gold deposits in West and Central Africa, has been another stable May-to-September performer. Although the stock’s recent declines have disappointed bullishly-minded investors in 2018 (YTD -20.5%), it has tended to perform well during the summer months.

Since 2001, Randgold has delivered positive performance in 12 out of 17 years (2001-2017, 71% positive rate), with an average stock price increase of 11.6%. Its best performing May-to-September period was in 2002 when the shares rose over 51%, while its worst performing Target Period was in 2015 (-26.6%).

(Source: CMC Markets, Date: 02.05.2018)

• With gold mining companies often seen by investors as an alternative to owning physical gold itself, the share price of Randgold has often reflected general sentiment for precious metals
• Despite starting the year on a positive note and reporting record output, Randgold’s share price has suffered amid concerns regarding geopolitical stability in Africa
• In April, Randgold’s stock traded a low of the year, which could mean support now around 5571p
• Investors need to decide if the stock will continue underperforming due to political worries, or whether the resilience of the gold market will push the stock up over 6000p resistance