Gascoyne Resources could be a good turnaround gold stock with recent discoveries

Last week's strong performance in the Dow demonstrates that as time goes by we will learn to live with inflation. It will diminish in significance as we find other thematics to concern us, though it will be a feature intermittently and it will still move markets when it does. The recovery of markets this week occurred against a backdrop of expectations of further interest rate rises, showing that the markets are willing to absorb the news without too much drama.

It was interesting to see the first Labor budget in nine year showing constraint - which the market appreciated.This is in contrast to the Morrison budgets that looked to every problem as a chance to throw money at it. It is as if the traditional party roles have been reversed, for the time being.

Everything is setting for a pre-Christmas rally. Many stocks have broken their steepest downtrends, giving headway for further improvements before hitting longer term, less severe downtrends. Recovery happens in progressive stages over time.

Last week Gascoyne (GCY) released impressive drill results from the Never Never gold deposit that immediately caught my attention. The widths and grades were exceptional in the context of the gold sector generally, but not in the context of the deposit itself. So, I had a closer look. 

 WeeklyComm29October2022.pdf