Randgold Resources Limited gained $5.05 on volume of 1.3 million shares today to close at $31.31 registering a terrific gain of 19.23%. Randgold Resources Limited is one of our core holdings so it is pleasing to see it put in such a strong day.
As we can see from the above chart Randgold has suffered considerably in recent times along with most of the gold producers. The technical indicators are all pointing north, which we hope is a sign of better things to come. Gold closed at $754.12, which is a modest $13.62 improvement on yesterday. The US Dollar has undergone another 50 basis points haircut, which in turn caused it to lose 2.42% on the US Dollar Index. Sooner or later it will dawn on investors that sitting in dollars and receiving a negative rate of return is akin to a slow financial bath. Some of these funds will be transferred to other currencies and other sectors of the stock market. The outlook for currencies is one of more rate cuts so they are becoming less attractive as an investment. However, gold is managing to put up some resistance, which should appeal to a portion of the investment community who are scanning the horizon for a safe harbour. The more cavalier among them will recognise that the gold producing sector is very much oversold and presents a window of opportunity for them. A few more days like today and this market sector should catch their eye.
Randgold has a market capitalisation of $2.39 billion, a P/E ratio of 39.29 with 76.39 million shares outstanding. The average volume of shares traded is 1.4 million per day. This stock has a 52 week high of $56.28 and a 52 week low of $22.28.
Randgold Resources Limited trades on the NASDAQ under the symbol of GOLD and on the London Stock Exchange under the symbol of RRS.
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