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Miners Randgold Resources (RRS) and Fresnillo (FRES) are outperforming on the UK Index this morning thanks to a rebound by Gold from $1250 support. This comes thanks to Friday’s goldilocks US jobs report (not too hot it means imminent US rate rise; not too cold that we need to worry about US growth) taking USD back from recent highs, making the metal cheaper for those buying in other currencies (except GBP!).
Additional interest in the safehaven yellow metal comes from a better performance by Republican candidate Trump in the second US Presidential Debate. A more measured temperament than last time increases the risk that the Donald could triumph, even if Hillary is leading in the polls.
Her rival is suffering from Republican outcry at his latest inflammatory remarks, even if they do date back a decade, but he does tend to benefit from a helpful layer of coating behind all that fake tan. Silver adding to its Friday rebound is helping the precious metals space to give both miners a boost.
Mike van Dulken, Head of Research, 10 Oct
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
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