Gold is losing its lustre as the Dow climbs higher

The gold price has gone into reverse while we are speculating on interest rate rises. Gold has been on the back foot for a month now. Had it not been for the simultaneous fall in the A$ the market reaction would have been greater. Since late April the A$ has fallen by 5.8% against the US$. The US$ gold price has fallen by slightly more, being 6.5%. That has not been enough to cause widespread selling of our gold shares, but it has taken the urgency out of the market. We need to see a reversal of the last month's movements to give us some encouragement, otherwise our gold shares are vulnerable to a slump if everyone decides to lighten their load.

To read the full commentary click on the link below 

 WeeklyComm28May2016.pages1.pdf