Gold marked time as speculators’ attention switched to a rally by bulk and base metals, most notably iron ore and copper.
Citigroup suggested that the outperformance of Glencore over Randgold Resources since the start of 2016 indicated a switch in sentiment.
Glencore has risen 80% compared to Randgold’s 55%, though Anglo American, which is a base/precious metal hybrid, has outperformed both.
“An examination of some of the key mining equities shows that the market may be beginning to anticipate that gold’s period in the sun relative to industrial metals may be coming to an end,” the US broker said.
In contrast, Goldman Sachs predicted that the base metal rally would be short-lived, though it is also a major bear on the gold price as well.
Spot gold was flat at US$1,267, silver shed US$0.20 at US$15.42 while platinum dropped US$5 to US$991.
Company news
Among the juniors, Stratex International PLC is set to be the latest AIM-listed firm to join the ranks of commercially producing gold miners.
Its Altintepe joint venture in Turkey should be declared in commercial production by the end of the month, it said today.
Production is gearing up to an annualised level of at least 30,000 oz, and Stratex will start to receive cash from the mine once this level has been achieved.
Bob Foster, Stratex’s chief executive, said ‘solid progress’ had been made since the first gold pour in November in spite of heavy snow in the region.
Major share price moves
Randgold Resources PLC (LON:RRS) down 105p to 6,305p
Fresnillo (LON:FRES) PLC down 34p to 918p
Anglo American PLC down 94p to 534p
Stratex International PLC (LON:STI) down 0.18p to 1.72p