Australian gold miners are soaring


Australian gold miners surged today amid renewed fears over the impact of Brexit, the UK’s withdrawal from the European Union.

The increased demand comes as investors seek the traditional safe-haven of gold. The spark was the news that UK property trusts Aviva, Standard Life and The Pru had suspended redemptions.

A short time ago, Evolution was up more than 7% to $2.97, St Barbara almost 7% to $3.57, Oceangold 5.5% to $5.74 and Northern Star almost 4% to $5.75.

The rest of the market is on a slide, following a rout on global markets. A short time ago, the ASX 200 was at 5,195.30, down 32.70 points or 0.63%.

The banks are all down more than 1% with the ANZ dropping 1.8% to $22.970. BHP fell 3.7% to $18.73 and Rio Tinto 2% to 446.81.

Bullion prices are up more than 25% so far this year and HSBC analysts expect gold prices to remain solid for the rest of 2016 with Brexit a boost to demand.

“We remain mildly bullish, but do believe that prices are close to a ceiling,” writes James Steel, HSBC’s chief precious metals analyst, in a note to clients.

HSBC forecasts $US1275 an ounce for 2016, rising to $US1310 in 2017.

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