This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Opening Price | Stop Loss | Profit Limit | Reward vs Risk | CFD Margin |
4324p | 4600p (274p/6.3% above) | 3590p (736p/17.0% below) | 2.7x | 5% |
Observations – For
Observations – Against
Gold found resistance at $1150 which keeps it within the confines of a narrowing pattern. Safehaven Gold has failed to benefit from recent uncertainty, hindered by USD strength. Years of raw material over-investment amid high prices is starting to bite with supply gluts and expensive restructuring required to maintain profitability. Tiny dividend yield.
Consensus target price implies just 6% upside from current levels. While only 12% of brokers are sellers, if everyone is neutral/positive, who’s left to buy and push the shares any higher? Note 44% of brokers have target prices below the current share price.
Next Event: 5 Nov, Q3 results
Latest Broker 12-Month Consensus: 44% Buy, 44% Hold, 12% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Boomberg or Company Press releases
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