Gold equities rise amid market gloom

By The Observer

Investors were spooked by the prospect of rising US interest rates yesterday, on top of global growth fears and continuing trade tensions, sending market indices tumbling.

The S&P500 closed down more than 3.3% and the S&P/TSX Composite Index recorded its biggest daily drop in more than three years, while London also closed lower.

However the situation did provide for a promising lift in the gold price, which was up about US$4 an ounce on this time yesterday to more than US$1,193/oz on the spot market.

Investors subsequently sent Australian gold equities higher in today`s trade, with all of the top five gains in the S&P/ASX200 made by gold miners.

Evolution Mining (ASX: EVN) and St Barbara (ASX: SBM) led the way, both with gains of more than 6%.

Evolution`s board had today approved the underground development and stage four pit cut-back at its high-margin Mt Carlton mine, with first ore expected in FY2021.

St Barbara meanwhile has awarded the contract to expand the gas-fired power station at its Gwalia gold mine as part of its extension.

In Toronto, the gold sector closed up 2.32% yesterday with Pretium Resources (TSX: PVG) closing up a further 6.6% as investors appreciated its improved quarterly production at its Brucejack mine.

This article provided by NewsEdge.