Gold and the US shutdown

About the author:

Author name:

By Tom Sartor

Job title:

Senior Analyst

Date posted:

08 October 2013, 9:25 AM

Sectors Covered:

Junior (Emerging) Resources, Bulk Materials

Gold equities have displayed a muted response to the US government 'shutdown' so far, and for the most part we think that's realistic given the political theatrics of last week.

We're more interested in what happens two weeks from now when the US legal borrowing limit is reached on 17 October 2013.

Trading suggestion

We think market positioning ahead of this date is supportive of a short term gold trade. 

Buy quality gold stocks such as Beadell Resources (BDR) and Regis Resources (RRL) as a trade prior to the US 'X-date' on 17 October to take advantage of a potential bounce in gold equities.

Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.