This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Gold miners Centamin (CEY) and Randgold Resources (RRS) are topping the this morning. This is thanks to the USD basket easing back from its rebound highs (concern about US rate rises receding; emerging market currencies steadying) coupled with reduced risk appetite as equities struggle against a strong Yen and weaker oil price. The combination has helped Gold bounce from 4-month rising support at $1260 to keep the 2016 reversal alive and a smile on the faces of gold bugs who called the bottom. Nonetheless, with equities not exactly tanking (yet) the break up through $1270 is more likely derived from momentum seekers eyeing a return to recent highs than outright safehaven seeking. Both would, however, do well to note potential resistance around $1290 in the form of falling highs since the turn of the month’s test of $1300.
Mike van Dulken, Head of Research, 11 May
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