Gold has settled in for its traditional summer lull but among the African miners there remain opportunities, suggests broker Liberum.
At the macro level, there are few material short-term catalysts, the broker suggests: a Fed interest rate cut seems unlikely; Chinese gold buying has slowed; it’s status quo in Ukraine; the Gaza conflict is easing somewhat; and many polls show Biden drawing roughly level with Trump.
“While acknowledging that things can change quickly, we believe these key market-moving things may bullishly reassert themselves in the autumn/winter.
“Consequently, we would look to opportunistically add names that have sufficiently given up gains or remain unloved, while taking profit on those that have outperformed since our last review of 25 April”.
In the broker’s universe, that equates to a reiteration of its 'buy' rating on Caledonia Mining and upgrades to Endeavour Mining to 'buy' (from 'hold') and Centamin to 'hold' (from 'sell').
Shares in Caledonia were flat at 765p, with Endeavour up 1.2% at 1,621p.