You’d think because of gold’s ‘safe haven’ qualities the yellow metal would be heavily in demand in the wake of Donald Trump being elected as the next US president.
Attentions are instead on the Federal Reserve and interest rates, which has dampened gold prices.
“Market consensus was that a Trump victory would be a significant positive for gold,” Numis analyst Jonathan Guy said in a note.
“The rally, such as it was, lasted for only a few hours as the President Elect struck a conciliatory tone and appeared to commit to a significant programme of infrastructure investment and tax cuts.
“Gold subsequently pulled back through its key short term technical levels and we believe that the metal could remain under some pressure ahead of the December FOMC meeting, where BBG is currently showing a 94% probability of a rate hike.”
Guy highlights that Centamin PLC (LON:CEY) has been the top performing listed gold company in London during the third quarter.
He said: “The standout Q3 result amongst the LSE listed golds was Centamin, where production continues to impress driven by the solid performance of both the plant and the underground part of the mine.”
The analyst also noted that Acacia Mining Plc (LON:ACA) also beat expectations, while Polymetal Plc (LON:POLY) and Hochschild Mining Plc (LON:HOC) hit production targets but Fresnillo Plc’s (LON:FRES) silver production fell short.
Guy added that whilst Randgold Resources Limited (LON:RRS) had improved quarter-on-quarter but said it has operational challenges at the Tongon and Kibali mines and he believes it has “much to do” in the fourth quarter year.